"NEWS July 4, 2016-objective scope of the split payment"

Posted by on Jul 4, 2016

The objective of application of assumption "cleavage", referred to in article 17 ter of DPR 633/1972, includes every operation carried out against public administrations-regardless of whether they are implemented in the framework of the institutional or commercial institution provided that provide for the application of VAT: are not affected, then, from the discipline of "split payment", the supply of goods or services not taxable or exempt or not qualifying the tribute (c.d. "off the field Vat").

For similar reasons, are not affected by "splitting" the situations in which the public administration does not carry out any payment to their suppliers: this is the case, for example, revenue collection services and other income, in respect of which the supplier has already in its availability the consideration payable to it and, by virtue of a special framework contained in a primary or secondary standard , holds the same, pouring the awarding authority the net amount. In that circumstance, it appears consistent with the rationale of article 17–ter DPR n. 633/1972-"exclude such cases from the mechanism of breakdown of payments, because the tax base and its sets are already in the availability of suppliers" (circular No. 15/E/2015).

From a practical point of view, the "split" must be applied to all supplies of goods and services carried out in the territory of the State, in respect of those public administrations that are documented by the invoice, in accordance with article 21 of DPR. # 633/1972, with indication of the tax charged to the transferee or purchaser: are, therefore, also including works contracts as services and operations for which apply the special billing arrangements and terms of registration under article 73 of the DPR. # 633/1972 (circular No. 15/E/2015).

Moreover, given that the discipline of "split payment" is applicable only to transactions subject to mandatory documentation invoice, are excluded from the regime to comment out the supply of goods and services – such as public spending – certified by the transferor or lender through the issuance of cash receipt referred to in article 8 of the Law 249/1976, receipt (law 18/1983) or non-tax , for people who make use of electronic filing of charges, in accordance with article 1, paragraph 429 and following of law No 311/2007, certification or other simplified procedures specifically provided for. According to the IRS, the latter case of exclusion shall also contain certified operations using simplified invoice (article 21-bis of presidential decree. # 633/1972), or the case where – after the certification by these simplified procedures – is functional only invoiced cost documentation or of VAT paid by the customer in connection with the good or service purchased.

Otherwise, the operation must be brought within the scope of "split payment" If the invoice is issued, at the request of the purchaser, transferee or public administration in lieu of the receipt or receipt (circular No. 15/E/2015).

by Sandro Cerato

DA-PROFESS