2754153 - Deactivation of Some Standard Tax Codes Starting 2019 [Italy Only]

You find that some standard tax codes are not available now in the system since from 2019. For example: tax code 22 for Domestic Purchase, ZeroRate.

SAP Business ByDeisgn

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In Italy it is required to include in Tax declarations (VAT Registers as well as in the  Spesometro/Esterometro) the VAT exempted invoices or partial exempted amounts in invoices, even if they are not relevant for VAT payment: the tax exempted invoices need  to be reported with the specific reason of exemption, that is the Tax Law article that is usually reported in tax code description.

In particular this is the case of VAT Registers, where the tax code descriptions are reported for each invoice items.

For Spesometro/Esterometro the assignment of proper Tax code Nature is based on the Tax Event.

Nature code reflects the category of tax exemption.

There are 7 categories recognized for tax exemptions, which are reflected in 7 different Nature codes:

 

N1 is for excluded Tax Art. 15

N2 is for Not subject to VAT

N3 is for Not taxable

N4 is for Exemption Tax Art. 10

N5 is for Ta special Regime

N6 is for Reverse Charge

N7 is for e-commerce, distant sales and MOSS Sales.

 

Spesometro was introduced as legal requirement in 2017, and many of the current tax events/tax codes were already created for Italy, with a logic that was not completely consistent with Spesometro requirements.

 

In order to do consistent Tax declarations, and considering that new tax events and tax codes have been created over time to better fit Italian legal requirements, in a effort of continuous improvement of the content, some tax codes have been deactivated starting 2019 in standard content, and the use of alternative tax codes is recommended.

See details in below list.

Tax Event TE	Description	Tax Code TC	Description	Alternative use
10	Domestic Purchase	22	Domestic Purchase, ZeroRate	use one of TC 8, 9, 26, 34 - 39, 51, 52, 73, 77
100	EU Goods Acquisition, Reverse Charge	41	EU Goods Acquisition, RevCharge, ZeroRate	there is no business case with RC 0%
150	NonEU Service Acquisition, Reverse Charge	47	NonEU Services Acquisition, RevCharge, ZeroRate	use of self invoice TC 90 (for outgoing, TC 590)
201	Import VAT from Outside EU (Customs Invoice)	53	Import VAT (Customs Inv), ZeroRate	there is no business case with import 0%
290	Purchases from SanMarino with VAT	59	Purchase from SanMarino, ZeroRate	use of self invoice TC 90 (for outgoing, TC 590)
291	Self-Assessed VAT after Purchase from SanMarino	65	Self-assd Purch from SanMarino, ZeroRate	use of self invoice TC 90 (for outgoing, TC 590)
310	Domestic Sale of Goods	513	Domestic Sale, ZeroRate	use one of TC 505, 506, 517, 545, 546, 547, 548, 532
350	Domestic Sale of Services	526	Domestic Sales of Services, ZeroRate	use one of TC 505, 506, 517, 545, 546, 547, 548, 532
542	VAT Split Payment EX DPR 633/72 Art. 17-Ter	553	VAT split payment ex dpr 633/72 art. 17-ter, reduced-low rate	use one of TC 505, 506, 517, 545, 546, 547, 548, 532
501	Sales of Goods to SanMarino	535	Sale of Goods to SanMarino, ZeroRate	use of TC 512
373	Sales with Exemption Letter	518	Sale with Exemption Certificate, Stnd.Rate	use of TC  516
373	Sales with Exemption Letter	519	Sale with Exemption Certificate, RedRate	use of TC  516
373	Sales with Exemption Letter	520	Sale with Exemption Certificate, RedLowRate	use of TC  516

 

Nevertheless the deactivated tax codes can be activated again in customer system, with proper Business Configuration activity.

Spesometro; tax code; , KBA , AP-SIP-SIV-GLO , Cross-Country Extensions , Product Enhancement

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