North America
September 25, 2019
Countdown to NSO – Italy’s Electronic Purchase Orders Platform
The new e-order mandate won’t affect VAT, it does impact the issuance of invoices to public sector entities. Learn more about NSO here.

Gabriel Pezzato

Author

Sovos

This blog was last updated on June 6, 2024

In less a  weeks’ time, on 1 October, all purchase orders associated with the Italian National Health System (Servizio Sanitario Nazionale, SSN) will be exchanged through the public administrations’ Purchase Orders Routing Node platform (Nodo di Smistamento degli Ordini), commonly referred to as NSO.

Although the new e-order mandate won’t affect the collection of VAT, it does impact the issuance of invoices to entities in the public sector.  This is because the invoices exchanged between the parties to the affected transactions must indicate specific data extracted from the e-order. Moreover, documents and messages validated by the NSO platform are conditions for the public administration to proceed with the liquidation and payment for the supply.

The début of NSO regime comes with challenges. The NSO platform has been built upon the existing SDI (Sistema de Interscambio) infrastructure, and as a result, the market expectation was that of a straightforward and smooth adoption of the new functionalities. However, recent bumps in the road, such as delays in publishing requirements regarding accreditation for some of the transmission methods, coupled with the continuous update of technical specifications, as well as technical teething problems have caused uncertainty as to whether or not the relevant authorities will indeed proceed with the go-live on the anticipated launch date of 1 October 2019.  The coming days leading up to the launch will show if the authorities are inclined to introduce the NSO regime in a more cushioned fashion than the e-invoicing reform in January this year, or if once more tax and e-invoicing compliance becomes a tight deadline for Italian suppliers to meet.

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Learn how Sovos helps companies handle e-invoicing and other mandates in Italy and all over the world. To find out more about what we believe the future holds, download the Sovos eBook on Trends: e-invoicing compliance.

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Gabriel Pezzato
Gabriel Pezzato heads up the EMEA Regulatory Analysis & Design team at Sovos, where he leads regulatory research across VAT and other indirect taxes. Based in Stockholm, Gabriel brings expertise in tax, corporate, and public finance law, with a focus on tax controls, including e-invoicing and tax filing. He holds a law degree and a specialization in Tax Law from Brazil, as well as an LL.M. in International and European Tax Law from Uppsala University, Sweden.