The D.M. 21.06.2021, which entered into force on 01.10.2021, contains the implementing provisions of the standard, while the Provision of 05.08.2021 (as subsequently amended by the Provision of 29.09.2021) contains the technical rules for issuing and receiving invoices electronic.

In implementation of the provisions contained in the D.M. 21.06.2021 a transitional period is foreseen from 01.10.2021 to 30.06.2022 during which both operators can issue documents in electronic format or still use paper format; starting from 01.07.2022 the law will be fully operational and 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 to San Marino;

purchases of goods from San Marino with and without tax charge.

Sales of goods to San Marino

Invoices relating to the sale of goods shipped or transported to the Republic of San Marino, issued in electronic format by taxable persons resident, established or identified in Italy, to San Marino economic operators identified in the territory of the Republic of San Marino, must report the identification number of the San Marino transferee and must be sent via the SDI (Interchange System) to the San Marino tax office.

The tax office, once the regular payment of the import tax has been verified:

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 Italian transferor within their own reserved area of ​​the "Invoices and payments" portal which will be able to view the electronic document and the outcome of the check carried out by the San Marino tax office.

In the event that within four months following the issue of the invoice, the tax office has not validated the regularity of the invoice, the operation is re-qualified as a taxable operation and must be subject to VAT: the Italian economic operator, within thirty days subsequent must issue a note of variation, pursuant to art. 26, co. 1, of the D.p.r. n. 633/1972, without the payment of penalties and interest.

Therefore, for the correct compilation of the electronic invoice, the Italian operator must report:

the identification number of the San Marino transferee;

in the recipient code field, the code "2R4GTO8" (code disclosed by the San Marino Tax Office with Circular no. 92466 of 31.8.2021);

in the nature field, the code N3.3 (which identifies the sales of non-VAT-taxable goods made to San Marino operators).

In the case of exemption from the obligation to issue an electronic invoice, it is possible for Italian transferors to issue the invoice in paper format. In this circumstance, the document must be issued in three copies, two of which must be delivered to the San Marino transferee.

In order to benefit from the non-taxability, the transferor must be 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. tax".

If within four months of issuing the invoice the Italian operator has not received from the transferee the copy of the paper invoice endorsed by the San Marino tax office, he 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 he has not received the copy of the certified invoice, he will have to issue a variation note, pursuant to art. 26, co. 1, of the D.p.r. N. 633/1972, without the payment of penalties and interest.

In the case of active operations carried out with San Marino private individuals, these will be subject to VAT in Italy, with the exception of the sale of new means of transport and distance sales.

Purchases of goods from San Marino

Purchases of goods by national economic operators from subjects resident in San Marino must be subject to VAT: the Decree of 21.06.2021 regulates the obligations for national operators, distinguishing the cases in which:

the invoice is issued in electronic or paper format;

whether or not VAT is charged.

The electronic invoices issued by economic operators identified in San Marino, for the sales of goods shipped or transported in the Italian territory, are transmitted by the tax office of San Marino to the SDI, which delivers them to the Italian transferee who can view them in the own reserved area of ​​the "invoices and payments" portal.

In the case of issuance of the electronic invoice with indication of the amount of VAT due by the transferee, the tax is paid by the San Marino operator to the San Marino tax office which within 15 days transfers the sums received to the competent office of the Agency of receipts and transmits to the same office in electronic format the summary lists of the invoices corresponding to these payments.

Subsequently, the office of the Revenue Agency, within 15 days, checks the correspondence between the payments received and the invoice data shown in the summary lists and notifies the San Marino tax office.

The positive outcome of the check is communicated electronically both to the San Marino tax office and to the Italian transferee who from that moment can deduct the tax.

In the event that the electronic invoice issued by the San Marino operator does not indicate the amount of VAT due, the Italian economic operator to whom the invoice was delivered via SDI must:

to pay the tax pursuant to art. 17, co. 2, of the D.p.r. n. 633/1972, indicating the amount of tax due in the manner provided by the Revenue Agency for the integration of electronic invoices (using the "Document Type" TD19);

note the invoices in the sales and purchases VAT registers provided for by articles 23 and 25 of the D.p.r. n. 633/1972, according to the terms and conditions established therein.

In the event of a paper invoice with indication of the amount of VAT due by the transferee, the San Marino transferor must:

issue an invoice in triplicate, indicating both their identification number and that of the VAT number of the Italian transferee;

submit these invoices to the San Marino tax office accompanied by a summary list in three copies and deliver to the tax office the sum corresponding to the amount of VAT that is due;

transmit to the Italian buyer the original invoice returned by the tax office which stamped it with a date and dry stamp.

The invoice received from the Italian buyer must be noted in the purchase register referred to in art. 25 of the D.p.r. n. 633/1972 for the purposes of deducting the tax paid in compensation.

If the paper invoice does not indicate the amount of VAT due to the San Marino economic operator:

issues an invoice in duplicate, indicating both its own identification number and that of the VAT number of the Italian transferee;

submit the two invoices accompanied by a summary list in two copies to the San Marino tax office;

sends the transferee one of the two copies of the invoice returned by the San Marino tax office after having affixed the circular embossed stamp.

The Italian buyer:

acquits the tax pursuant to art. 17, co. 2 of the D.p.r. n. 633/1972, indicating the amount on the copy of the invoice sent by the San Marino supplier;

note the invoices in the VAT registers of sales and purchases in accordance with articles 23 and 25 of the D.p.r. n. 633/1972 according to the methods and terms established therein, thus being able to deduct the tax paid as compensation.

Finally, in the case of purchases of goods by private Italian subjects (with the exception of the sale of new means of transport and distance sales), these will be subject to VAT in San Marino.