Electronic invoicing and the condominium: what the administrator needs to know

Electronic invoicing concerns a condominium above all on the receiving side: the condominium does not issue invoices but receives from suppliers electronic documents that pass through the Interchange System of the Italian Revenue Agency. For the administrator it is important to know which data to give whoever issues the invoice and how to organise reception and retention, so as not to lose tax documents and to keep the condominium's accounting in order.

The condominium receives, it does not issue

For tax purposes the condominium is treated as a final consumer: it does not carry out a business activity and does not issue invoices to its owners. Instalments and contributions are not operations subject to electronic invoicing. The condominium therefore sits on the receiving side: plumbers, cleaning firms, lift maintainers, energy suppliers and everyone else issue an electronic invoice made out to the condominium.

The administrator's position is an exception, since they are a professional or a company with a VAT number: their fee is invoiced electronically to the condominium, exactly like the other services. It is useful to keep this invoice, which relates to the management fee, separate from suppliers' invoices, which instead relate to the cost of the common services.

The role of the condominium's tax code

Every condominium has its own tax code (codice fiscale), which identifies it as the ordering party. This is the main piece of data the administrator must give to suppliers: the electronic invoice must be made out to the condominium with its tax code. No VAT number is needed, which the condominium as such does not hold, except in particular cases linked to specific activities.

The recipient code and the seven zeros

In the electronic invoice the supplier must indicate the channel through which to deliver the document. The condominium is not required to obtain a recipient code, that is the seven-character SDI code used by accredited operators. When the condominium does not have a recipient code, the supplier enters the conventional value of seven zeros in the relevant field. In that case the invoice still remains available in the reserved area of the Interchange System.

Receiving by certified email

As an alternative to the seven zeros, the condominium can give the supplier a certified email address (PEC), which acts as the delivery point for the invoice through the Interchange System. Indicating a PEC dedicated to managing the condominium is the tidiest solution: it centralises the reception of tax documents, prevents invoices from getting lost and creates a record of deliveries. It is important that the mailbox is monitored regularly.

What to tell suppliers

To receive electronic invoices correctly the administrator should give suppliers a consistent set of data.

• The exact name of the condominium.
• The condominium's tax code.
• The recipient code, if the condominium has a dedicated one, or the indication to use the seven zeros.
• The receiving PEC address, if this channel is chosen.
• The address of the building for correct addressing.

The link with the withholding tax

Many invoices received by the condominium relate to works and service contracts, on which the condominium, as a tax substitute, applies the 4 per cent withholding on account. Reading the electronic invoice correctly is therefore the starting point for tax obligations: the taxable amount, the nature of the service and the supplier's data are used to calculate and pay the withholding and to issue the related certification.

Not every invoice received triggers the withholding: excluded, for example, are supplies of goods without installation and services that cannot be traced back to works or service contracts. Distinguishing the two already at the recording stage avoids incorrect payments and simplifies preparing the annual certification to be issued to suppliers and transmitted to the Revenue Agency.

The benefits for the condominium

Even though the condominium does not issue invoices, electronic invoicing brings concrete benefits to management. Documents arrive in a structured, always identical format, which makes accounting entry faster and more reliable than paper. The traceability of the Interchange System reduces the risk of lost or disputed invoices, and having the files in a digital archive makes checks, the preparation of the financial statement and responses to owners' access requests easier.

Retention and recording

Invoices received must be recorded in the condominium's accounting and kept together with the supporting documentation. Supporting expense documents must be kept for ten years from the date of the relevant recording, and it is this documentation that owners have the right to access. An orderly management of the archive prevents the proof of expenses incurred from being missing years later.

Electronic invoicing with management software

Condominium management software can import the electronic invoices received, link them to the supplier and the expense item, calculate the withholding and connect each document to the accounting movement and the financial statement. In this way the invoice does not remain an isolated file in a mailbox but feeds the accounting and stays retrievable for the meeting and the owners.

AmministraPro handles the acquisition of suppliers' electronic invoices, the calculation of withholdings and the link with accounting and the financial statement, with documentation attached to each movement. You can see how it works on the features page or compare the plans in the pricing section.