da Marco Vergani | Feb 27, 2019 | VAT registration in Italy
With the answer to question n. 67 published yesterday, the Italian Revenue Agency has provided some clarifications on electronic invoicing for foreign companies.
The question was presented by a company not established in Italy but here identified for VAT purposes.
With regard to the communication of cross-border transactions, the Italian Agency recalls that the obligation is borne only by taxpayers resident or established in the Italian territory: the company here identified must not therefore communicate the transactions to and from abroad while, on the contrary, the active operations carried out towards the identified company must be communicated.
As regards the issue of electronic invoices the Agency confirm what was previously indicated in a FAQ, namely that italian companies are required, alternatively, to transmit e-bills via Sdi or to carry out the “esterometero” communication.
In the case of an electronic invoice issue, the Italian VAT number of the identified company must be reported, using a conventional code with seven zeros for transmission and ensuring the possibility of obtaining a paper copy of the invoice if requested.
da Marco Vergani | Feb 21, 2019 | Fiscalità
With the reply to question 57, the Italian Revenue Agency has returned to the taxation of dividends paid to foreign controlling entities. In particular the Agency analyzed the distribution of intragroup dividends in the event that the recipient is a company belonging to the Swiss Confederation.
The document of practice recalls that, pursuant to the agreement signed between the European Union and Switzerland on 26 October 2004, a specific exemption has been provided for the application of the 27% withholding tax based on Article 27, paragraph 3 of the DPR 600 / 73. Indeed, pursuant to Article 15 (1) of the Agreement, which entered into force on 1 July 2005, the dividends paid by the subsidiaries to the parent companies are not subject to taxation in the State of origin, when several are satisfied:
– the parent company directly holds at least 25% of the capital of the daughter company for a minimum of two years;
– one of the two companies has tax residence in one Member State and the other has a tax residence in Switzerland;
– neither company has tax residence in a third State on the basis of an agreement on double taxation with that third State;
– both companies are subject to direct tax on company profits without benefiting from exemptions and both take the form of a capital company.
Lastly, it is important to underline that, according to the resolution of the Revenue Agency n. 93/E/2007, the companies belonging to the Swiss Confederation, in order to benefit from the particular mother-daughter regime, can not enjoy or apply provision of law, nor as a result of administrative measures, of special facilitating schemes, which result in exemption from one of the three levels of direct taxation (federal, cantonal and municipal).
In the case examined, Beta SA had formally waived, since the 2017 tax period, the regime of “holding companies resident in Switzerland”, which provides for exemption from cantonal and municipal taxes. In addition, dividends were intended to be distributed by Alfa to the Beta SA company only in 2019, thus causing them to be subject to the ordinary tax regime in force in the Swiss Confederation.
On this point, it should be noted that the so-called “reduction for equity investments” (a sort of participation exemption regime) cannot in any way be considered a favorable tax regime.
In light of the above, the Revenue Agency has given a favorable opinion regarding the exemption from the application of the 27% withholding tax, considering the behavior of the company in line with the dictates of the agreement between the European Union and Switzerland.
da Marco Vergani | Feb 11, 2019 | Art and taxation
The most well-known free ports are in Geneva, Luxembourg, Singapore, Beijing, Monaco and Delaware and these jurisdictions consider them as advantages in their offshore financial centers. However, – according to the report “Money laundering and tax evasion risks in free ports” – free ports make up only a small part of the high-end storage market. Because the number of customs warehouses is much larger offering the same security, indirect tax benefits and privacy, even if with different administrative procedures as often managed by private companies. In most free ports or customs warehouses (Luxembourg is an exception) almost anyone can introduce goods without revealing the last beneficial owner (Ubo, ultimate beneficial owner), ensuring confidentiality by tax authorities or creditors. Then in most cases the recorded value of goods depends only on self-declaration, which leaves ample margins of over- or under-valuation. The demand for these services is fueled by the new association between finance and art, considered an attractive commodity in times of crisis – masterpieces increase their value over time (especially if for ten years closed in a storage) – it is in a bull phase market, fueled by the expansion of private collections, new museums and new billionaires from China, the Middle East and Russia. But the fifth anti-money laundering directive (Amld5 Fifth Anti-Money Laundering Directive) raises the bar: from 10 January 2020 it will explicitly ask the operators of free ports and art market actors, who will become “non-financial obliged entities”, to comply with the same obligations of adequate verification of the clients of real estate agents or notaries. The guardians of the Anti-money laundering (AML) will act as they will have to report suspicious transactions to the Financial Intelligence Units. The analysis of the EPRS also raises a problem on the application to customs warehouses, where the identity remains unknown, of the fifth directive in harmony with the Union Customs Code (Ucc). Then the fifth EU directive on administrative cooperation (DAC5) provides that the tax authorities have access to the Ubo information and other information collected by entities obliged under the framework of the AMLD, starting from 1 January 2018. As free port operators will become obligatory entities by 10 January 2020 under Amld5, the DAC5 will become relevant only then. Only in Luxembourg the Direct Tax Office already has “access on request” to Ubo data held by licensed free port operators such as Le Freeport Luxembourg. But the art market will still have filters: in fact, “fishing” in data held by non-financial entities is not allowed; the tax authorities will have to know who and what they are looking for before to request access to Ubo information, otherwise the Ubo registers with non-financial obliged entities will remain “unknown. And one wonders if the Aml directive will have effects on the art market? The EU risks losing its appeal, leaving the way open to the free port of Geneva, located near the airport, with two deposit schemes for customers: free port or Swiss. The solution is around the corner.
da Marco Vergani | Feb 11, 2019 | E-commerce
In caso di emissione della fattura (immediata o differita), preceduta dallo scontrino (“parlante”, in caso di fattura differita), dalla ricevuta o dal “documento commerciale”, i dati di questi tre documenti vanno riportati nella fattura e va prestata attenzione a non duplicare né il versamento dell’Iva, né la tassazione del ricavo. L’ammontare dei corrispettivi certificati (da ricevuta/scontrino fiscale o dal “documento commerciale” emesso in caso di invio telematico dei corrispettivi) e oggetto di fatturazione, quindi, dev’essere scorporato dal totale giornaliero dei corrispettivi (risposta delle Entrate alla Faq n. 45 del 21 dicembre 2018 e circolare 249/1996).
Con l’avvento della fattura elettronica inviata allo Sdi, infatti, non è consigliabile registrare il totale dei corrispettivi (comprensivo degli importi fatturati) e non registrare le fatture elettroniche, ma è preferibile contabilizzare tutte le fatture nel registro Iva delle vendite, togliendo i relativi importi da quanto “certificato”.
La duplicazione dei ricavi può essere evitata, ad esempio, istituendo nel registro dei corrispettivi quattro colonne: una per gli scontrini, le ricevute e i “documenti commerciali”; una per le fatture emesse per le quali è già stato rilasciato uno dei precedenti tre documenti (scontrino, ricevuta o “documento commerciale”); una per le fatture emesse senza la preventiva “certificazione dei corrispettivi” (con rilascio di una quietanza, della ricevuta del Pos, eccetera) e una relativa al totale dei tre precedenti ammontari (anche in base alla circolare 3 del 15 gennaio 1973, protocollo n. 525373/73).
Le fatture dovranno essere registrate tutte nel registro Iva delle vendite, mentre i corrispettivi giornalieri totale (ultima colonna) dovranno essere registrati, al netto dei ricavi delle fatture emesse (circolari 249/1996 e 97/1997, oltre che risposta delle Entrate del 16 gennaio 2019, n. 7).
In caso di emissione dello scontrino, della ricevuta o del documento commerciale, va indicato nel campo «Tipodato» dell’elemento «AltriDatiGestionali» la stringa «Numero scontrino, numero ricevuta o numero doc. commerciale», nel campo «RiferimentoTesto» l’identificativo alfanumerico dello scontrino, della ricevuta o del documento commerciale, nel campo «RiferimentoNumero» il numero progressivo dello scontrino, della ricevuta o del documento commerciale e nel campo «RiferimentoData» la data dello scontrino (risposta delle Entrate alla Faq n. 45 del 21 dicembre 2018).
da Marco Vergani | Feb 6, 2019 | Taxation in Italy
The Budget Law 2019 amended the regime forfettario previously introduced by the 2015 Stability Law. In particular:
- the threshold of revenues / compensation that allows access to the regime was raised to € 65,000
- the access requirements relating to the cost of personnel and capital goods have been eliminated
- some impediments concerning the performance of work activities and the holding of shareholdings were reformulated.
The regime forfettario makes it possible to apply a single substitute tax on income, with a rate of 15% (5% for the first 5 years of business), replacing those ordinarily provided (Irpef).
From 2020, on the other hand, it will be fully introduced the 20% flat rate for individual and professional entrepreneurs who, in the year prior to the access, have earned revenues or received compensation, adjusted for each year, between 65.001 and 100.000 euros.
Taxpayers who can access the flat-rate scheme can: - start a new business activity, art or profession and that presume to achieve revenues or fees not exceeding 65,000 euros;
- have already started an activity if they have achieved revenues / compensation below the threshold of 65,000 euros.
If several activities are carried out, which are distinguished by different ATECO codes, the sum of the revenues / compensation relating to the various activities carried out must be considered.
Since the flat-rate scheme is a natural regime, taxpayers who are already engaged in business, art or profession access it without the need for any communication.
Subjects can not access the lump-sum scheme: - making use of special schemes for VAT purposes or for flat-rate income-setting schemes;
- non-residents (with the exception of those residing in an EU or EEA State, which ensures an adequate exchange of information, which produce in Italy at least 75% of the total income produced
- that carry out, exclusively or prevalently, operations for the sale of buildings or portions of buildings, building plots or new means of transport;
- who participate simultaneously in partnerships, professional associations or family businesses, or that directly or indirectly control S.r.l. o Associations in participation, which carry out economic activities directly or indirectly related to those carried out by the business activities of the arts or professions;
- physical persons whose activity is mainly carried out in respect of employers with whom work relations are ongoing or during the previous two tax periods, or in relation to persons directly or indirectly attributable to such employers of work.
The lump-sum regime ceases to be effective starting from the year following the one in which the access requirement is terminated, or a cause of exclusion occurs.
For VAT purposes, the adoption of the flat-rate scheme involves a series of simplifications, including the exemption from the obligation of electronic invoicing. The numbering and preservation obligations of the purchase invoices and the customs bills, the certification of the fees and the integration of the invoices for the operations for which tax is payable (with an indication of the rate and relative tax) remain in place.
For accounting purposes, the lump-sum regime exempts from registration and keeping records. Taxpayers who adopt it do not apply sector studies and parameters, do not operate withholding taxes or undergo withholding taxes.
da Marco Vergani | Gen 28, 2019 | IVA, Start-up
There are three “stakes” to be respected for the taxpayer in a flat-rate regime (regime forfettario) that aspires to reduce to 5% (instead of 15%) the substitute tax, and are still those provided for in paragraph 65 of article 1 of law 190/2014 , not modified by the Budget Law 2019. The three requirements for the “discount” are as follows:
1.The tax payer must not have exercised, during the three years preceding the startup, artistic, professional or business activity, also in associated form;
2.The activity now carried out (the start-up) must not constitute, in any way, a mere continuation of other activity previously exercised in the form of dependent or self-employment, excluding compulsory practice for the purposes of the exercise of arts or professions;
3.In case of continuation of activities previously carried out by another person, the amount of the related revenues and remuneration, realized in the tax period preceding that of recognition of the benefit must not exceed the limit of 65 thousand euro.
Some clarifications are found in the documents of practice dedicated by Agenzia delle Entrate to the “regime dei minimi” (circular 17 / E / 2012, 59 / E / 2001 and 1 / E / 2001).
The first limitation does not operate if the taxpayer participated in inactive companies or, in any case, with the opening of the VAT number without any concrete activity.
Among the aspects to be considered in relation to the decision or not to apply the flat-rate regime, the accounting / tax simplifications that are proper to the substitutive regime must be duly considered. These simplifications, in fact, allow a saving of administrative costs that could have a decisive influence on the final choice.
Taxpayers who apply the flat rate system are only obliged to number and keep the purchase invoices and the customs bills and to certify the fees. In particular, there is exemption from electronic invoicing (except in the case of supplies / services to the PA) and from the payment of the tax. However, in certain situations (for example, the provision of services received for which the obligation to apply the rules of Article 7-ter of Presidential Decree 633/1972 becomes operative), the tax payers are owed by VAT with payment obligation on the 16th day of the month following the month in which the transaction was carried out.
In addition, for the lump-sum payments, the non-application of withholding taxes on the payment of remuneration and / or income and the absence of the status of withholding agents is recognized.
In light of the changes introduced by the Law for the 2019 Financial Statements, the obligations that must be put in place by persons using employees, in light of the exemption provided for by the rule establishing the flat-rate scheme (paragraph 69, law 190 / 2014).
For the purposes of income tax, the exemption from registration and keeping of accounting records becomes operative, even if there is an obligation to keep the documents received and issued. Finally, for taxpayers on a flat-rate basis, exemption from IRAP exists.
