The Legislative Decree no. 50/2017 modified the articles 19, paragraph 1 and 25, paragraph 1 of the Presidential Decree 633/1972, which concern respectively the exercise of the VAT deduction and the invoices registration.
From the coordinated reading of the two articles abovementioned and the clarifications introduced by the circular no. 1 / E of the Revenue Agency, it is implied that the day from which start to run the terms for the exercise of the VAT deduction coincides with the moment in which the two following conditions verify on the transferee / buyer:
When both conditions are verified the transferee/buyer, after the invoice registration in accordance with the procedures set forth in article 25, first paragraph, of the Presidential Decree no. 633/1972, can exercise the deduction of the tax referred to purchases of goods and services, or to imports of goods.
The following table shows, in relation to the different cases identified, the related fulfilments and deadlines, indicating in particular:
Cases |
VAT liquidation |
Deadline to deduct VAT |
Spesometro* |
Invoice dated 2017 and received in 2017 (registered between 01/01/2018 and 30/04/2018) |
It is necessary to create and use a special VAT section related to purchases 2017 ("thirteenth liquidation") |
30/04/2018 (deadline of transmission of VAT return referred to FY 2017) |
Enter the Invoices in the “Spesometro” referred to year 2017 |
Invoice dated 2017 and received in 2018 (registered in 2018) |
First 2018 VAT liquidation following the invoice registration |
30/04/2019 (deadline of transmission of VAT return referred to FY 2018) |
Enter the Invoices in the “Spesometro” referred to year 2018 |
Invoice dated 2017 and received in 2018 (registered between 01/01/2019 and 30/04/ 2019) |
It is necessary to create and use a special VAT section related to purchases 2018 ("thirteenth liquidation") |
30/04/2019 (deadline of transmission of VAT return referred to FY 2018) |
Enter the Invoices in the “Spesometro” referred to year 2018 |
Invoice dated 2018 and received in 2018 (registered in 2018) |
First 2018 VAT liquidation following the invoice registration |
30/04/2019 (deadline of transmission of VAT return referred to FY 2018) |
Enter the Invoices in the “Spesometro” referred to year 2018 |
Invoice dated 2018 and received in 2018 (registered within 30/04/2019) |
It is necessary to create and use a special VAT section related to purchases 2018 ("thirteenth liquidation") |
30/04/2019 (deadline of transmission of VAT return referred to FY 2018) |
Enter the Invoices in the “Spesometro” referred to year 2018 |
* Purchasing invoices in the “Spesometro” may be communicated on the basis of the year in which the right to deduct VAT is exercised that coincides with the year of receipt of the documents. In regard of this point It will be necessary further clarifications by the Revenue Agency.
The transferee / buyer who has exercised his right to deduct VAT must be able to prove the moment when the purchase invoice was received.
This proof may be provided by alternatively using the following means:
In the event that the documents mentioned in point i) are not available, the proof of a correct bookkeeping according to the provisions of point ii) becomes essential. To this end, the company should adopt a standard procedure formalized in writing and related to the receipt and registration of documents.
If the company does not have neither documents of proof nor an efficient standard procedure, in case of tax audits It will be assumed that the date of receipt of the invoice coincides with the date of issue of the same.
Furthermore, It is recalled that it is duty of the transferee / buyer to proceed with the regularization of a purchase invoice not issued within the terms of the law or "irregular".
Therefore, the transferee / buyer who has not received an invoice from his supplier within 4 months from the date of execution of the transaction, is required to submit to the competent office and within the 30th day following the expiry of the terms a self-invoice in duplicate, after payment of the tax due.
The failure to comply with these obligations implies the application of a penalty pursuant to art. 6, paragraph 8 and paragraph 9-bis of Legislative Decree 471/1997.
Accounting Customs Bill: in this case the purchaser who has to account a customs bill relating to a purchase with VAT payable in December 2017, will have to prove when he actually received the relevant documentation from the customs representative, if during the month of payment (close hypothesis) or at a later time (remote hypothesis). In the last case, it is necessary to have all the documentation proving the "late" delivery by the customs representative of the documents relevant for VAT purposes.
Purchases of intra-community goods and services: in this case the law had already set strict deadlines and in particular:
It is considered appropriate to underline that the formal condition for the deduction, therefore, occurs within and not beyond the terms set out above.
In according with the circular of the Revenue Agency, it will be necessary to use a special VAT section if the accounting of a purchase invoice occurred in a tax period subsequent to the one in which the two conditions above (formal and substantial) occur, not later than the deadline for transmitting the VAT return for the year in which the right to deduct arose. This approach will be necessary in order to outline that the VAT, not included in the periodic VAT settlements related to the registration tax period, contributes to determining the balance of the annual VAT return for the year in which the requirements are verified.
The circular states that the principle of VAT neutrality remains guaranteed by the possibility to present an integrative VAT return, to correct errors or omissions that determined the indication of a higher taxable amount, a higher tax debt or a lower deductible surplus.
This clarification will allow the VAT payer to recover the VAT not previously deducted by presenting the integrative VAT return up to December 31st of the fifth year following the one in which the first VAT return was transmitted.
In according with the principles of the contributor's Statute and given that the clarifications reported by the circular intervene at a date subsequent to the deadline set for the periodic payment of VAT related to December 2017, the different behavior from the indications provided by the circular of the Revenue Agency - adopted by VAT payers during this periodic liquidation - will not be punishable.