With a view to a progressive simplification of tax obligations, thearticle 12 DL 34/2019 has extended the obligation of electronic invoicing in exchanges between Italy and San Marino.

The Ministerial Decree of 21.06.2021 in force on 01.10.2021, in the system of the previous Ministerial Decree of 24.12.1993 contains the implementing provisions of the law and the discipline for the effects of the value added tax of the exchange relationships between the Italian Republic and the Republic of San Marino, while the Provision of 05.08.2021 contains the technical rules for issuing and receiving electronic invoices.

There is a Temporary time from 01.10.2021 to the 30.06.2022 during which both operators can issue documents in electronic format or still use the paper format; starting from 01.07.2022 the standard will be fully operational e invoices can only be issued in electronic format, except for specific legal exclusions.

In particular, the Decree regulates the exchange of goods with San Marino distinguishing between:

• sales of goods towards San Marino;
• purchases of goods from San Marino with and without tax charge.

Invoices relating to sales of goods shipped or transported to the Republic of San Marino, issued in electronic format by taxable persons residents, stability or identification in Italy, towards San Marino economic operators identified in the territory by the Republic of San Marino, must report the identification number of the San Marino transferee and must be transmitted through the Sdi to the tax office of San Marino. The tax office, once the regular payment of the import tax: · validates the regularity of the invoice; · communicates the outcome of the check to the competent office of the Revenue Agency through a specific electronic channel. The invoice, once validated, is made available to the English transferor within their own reserved area of the “Invoices and payments” portal, which will be able to view the electronic document sent electronically and the outcome of the check carried out by the San Marino tax office. In the event that within i four months after the invoice is issued, the tax office has not validated the regularity of the invoice, the transaction is re-qualified as a taxable transaction and must subject to VAT: the Italian economic operator, in thirty days later must issue a variation note, pursuant toarticle 26, paragraph 1, Presidential Decree 633/1972, without the payment of penalties and interest.

Recently the San Marino Tax Office, with the circular no. 92466 of 31.8.2021 announced the conferment code consisting of 7 alphanumeric characters (2R4GTO8) which must be entered in the field “conferment code“Of the electronic invoice, under penalty of discarding it.

therefore, for the purposes of correct electronic invoice the Italian operator must report:

• The identification number of the San Marino transferee;
• In the transfer code field code “2R4GTO8 “;
• In the nature field the code N3.3.

As mentioned, until 30.06.2022 it is possible for resident economic operators, stability or identification in Italy for the sale of goods shipped or transported to the Republic of San Marino issue paper invoices; from 01.07.2022 instead this option will be possible only for subjects not required by law to issue the electronic invoice.

In the case of paper invoice the document must be issued in three specimens, two of which must be delivered to the San Marino transferee.

See within four months since the issue of the invoice the Italian operator has not received from the transferee the copy of the paper invoice endorsed by the San Marino tax office is required to notify the same Office and for information to the competent office of the Revenue Agency. Furthermore, if within the following thirty days the copy of the certified invoice has not been received will have to issue a variation note, pursuant toarticle 26, paragraph 1, Presidential Decree 633/1972, without the payment of penalties and interest.

In conclusion, therefore, the active operations relating to goods shipped or transported in the territory of the Republic of San Marino, found in respect of economic operators who have communicated the identification number attributed to them by the Republic of San Marino, are not taxable, pursuant to articles 8 And 9 Presidential Decree 633/1972, if the following conditions are met:

• in the case of an electronic invoice, if the tax office has validated the validity of the document;
• in case of paper invoice, if the transferor is in possession of a copy of the invoice returned by the San Marino transferee, endorsed with the indication of the date, with a circular embossed stamp containing the words “Rep. Of San Marino – Uff. tributary“.

Finally the active operations carried out with San Marino private individuals will be subject to Italian VAT, excluding the sales of new means of transport and of distance sales.