Regulatory Requirements for Opening an E-Commerce

E-commerce is divided into two different types of activities: wholesale and retail, defined by art. 4, paragraph 1, letters a) and b), of Legislative Decree 114/98. When it comes to retail, e-commerce, being conducted "through other communication systems", falls under "special forms of sale" (art. 18 of Legislative Decree 114/98).

To start an online retail business, it must be communicated to the municipality* where the seller has residence, if a natural person, or the legal headquarters, indicating possession of the access requirements for the activity (listed in art. 5 of Legislative Decree 114/98) and the merchandise sector. The activity can begin thirty days after the municipality receives the communication (failure to respond is equivalent to acceptance of the request).

In the case of joint operation of wholesale and retail, it is possible to use a single website, provided that the two types of commerce are allocated to two distinct areas, so as not to confuse the potential buyer. The ministry also takes the opportunity to clarify that decree 114/98 does not apply to intermediaries, such as commercial agents and business brokers, and to occasional sales activities. The circular concludes by drawing attention to the obligation to comply with current legislation regarding consumer protection in online sales, particularly the rules of Legislative Decree January 15, 1992, no. 50, regarding contracts negotiated outside commercial premises and Legislative Decree May 22, 1999, no. 185, regarding consumer protection in distance contracts.

CURIOSITY: Online sales are akin to mail-order sales and therefore do not require an invoice (unless requested by the customer) as provided in article 22 of the d.p.r. no. 633 of 1972, and do not require the issuance of a receipt as provided in article 2, letter oo), of the d.p.r. December 21, 1996, no. 696. Many companies that sell online for practical reasons prefer to issue a transport document (ddt) and then record the daily totals; in fact, in practice, it is sufficient to note the sales made online in the register of receipts. In the case of direct e-commerce (downloadable products), this facilitation does not apply; it is therefore necessary to issue an invoice for each purchase or payment received. This is because the sale of intangible goods that are immediately usable (music, software, etc.) is treated as service sales and currently does not benefit from any exemption regarding invoicing.

*) Since March 2011, it is no longer necessary to submit paper documentation to the municipality's commerce office where the business is located. The forms have been replaced by an electronic communication through the SUAP (Single Desk for Productive Activities). Along with the SUAP communication, it is necessary to prepare the SCIA (Certified Notification of Start of Activity) to start an online sales activity or to take over from another seller. These procedures are quite cumbersome, and it is advisable to consult your accountant.

REFERENCE LEGISLATION:
Legislative Decree 114/98 (Bersani Decree) and L.R. 33/99

- What is needed: communication to the municipality of residence of the activity.
- Requirements: must be of legal age and possess the requirements of art. 5 of Legislative Decree 114/98.
- Timing: start of activity after 30 days from the submission of the communication.

Useful Links:
- Single Desk for Productive Activities of the Municipality of Rome

Other regulatory areas to consider when starting an e-commerce site include: distance contract regulations, right of withdrawal, VAT, warranties, sales conditions, privacy.