2558793 - VAT Split Payment - Country Italy

SAP Knowledge Base Article - Public

2558793 - VAT Split Payment - Country Italy

Symptom

In case of VAT Split Payment, the VAT Payable is to be paid directly to the Tax Authorities by the customer rather than to the supplier. This has been introduced in Italy in 2015 for transactions with the state and other public bodies, and, valid from July 2017,  has been extended to an even broader scope.

Environment

SAP Business ByDesign

Resolution

The following tax events and codes are planned to be deployed within SAP ByDesign version 1708  for VAT Split Payments:

 Purchasing / SRM side - handled as standard Reverse Charge scenarios:

  • Tax Event IT 42 -  VAT Split Payment DPR 633/72 Art. 17-ter, ex DL 50/17 Art. 1
  • Tax Code IT 74 - VAT Split Payment DPR 633/72 Art. 17-ter, ex DL 50/17 Art. 1, Standard Rate
  • Tax Code IT 75 - VAT Split Payment DPR 633/72 Art. 17-ter, ex DL 50/17 Art. 1, Reduced-Normal
  • Tax Code IT 76 - VAT Split Payment DPR 633/72 Art. 17-ter, ex DL 50/17 Art. 1, Reduced-Low Rate

Sales / CRM side - special handling of output tax as tax is to be paid to the financial authority directly by the customer:

  • Tax Event IT 542 - VAT Split Payment EX DPR 633/72 Art. 17-Ter
  • Tax Code IT 550 - VAT Split Payment ex DPR 633/72 Art. 17-ter, Standard Rate
  • Tax Code IT 551 - VAT Split Payment ex DPR 633/72 Art. 17-ter, Reduced-Normal Rate
  • Tax Code IT 552 - VAT Split Payment ex DPR 633/72 Art. 17-ter, Reduced-Low Rate
  • Tax Code IT 553 - VAT Split Payment ex DPR 633/72 Art. 17-ter, Zero Rate
  • Tax Exemption Reason Code IT 25 - VAT Split Payment EX DPR 633/72 Art. 17-Ter , lined with its legally required text: Split payment – VAT paid directly by customer according to EX DPR 633/72 Art. 17-Ter.

From System Version 1711:

  • it is possible to use VAT Split Payment Tax Codes in Manual Tax Entries.
  • further CRM (Sales) business transactions have been added to the default configuration set up for Deferred Tax for IT industry sector for Public administration (as deferred tax is replaced by VAT Split Payment)*.

*Please find attached the latest, detailed information on the default scenarios as well as current limitations.

Keywords

KBA , SRD-FIN-TAX , Tax Management , Problem

Product

SAP Business ByDesign all versions

Attachments

Italuy_VAT_Split_Payments.pdf