IT Localization

Activity Code

If indicated in Company Information page, the Activity Code field is defaulted on the documents that request it (Sales Header, Purchase Header, Finance Charge Memo Header).

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Electronic Invoicing (IT)

Italian Electronic Invocing (also known as FatturaPA) is defined by government rules through the "Agenzia delle Entrate". 

Fatturazione elettronica PA - FatturaPA

Most sales invoices must be sent to customers and most purchase invoices are received from vendors. Only few exceptions are allowed.

Electronic Invoices can be exchanged manually (via certified e-mail PEC or via authorized provider) or automatically (Business Central can contact the provider via Web Services).

Company Information Setup

In the "Company Information" page the following data are mandatory:

Payment Methods

Each payment method must be related with the government one.

Fill the "Fattura PA Payment Method" in the "Payment Methods" page.

Customers

For each customer the following data are mandatory:

"PA Code" is the code of the provider of the customer, similarly to the domain name after @ in the e-mail addresses. For private company "PA Code" is 7 character length, for governative agencies is 6 character length. Use "XXXXXXX" for foreign customers, use "0000000" to use the default provider that customer has defined in the public registry.

E-Invoice Setup

The "Italy E-Invoice Setup" contains all specific parameters of the function. "Working Path" is the virtual file system path to store sent and received e-invoices and their attachments.

It's possible to strip unwanted characters from document numbers and to define a custom Exchange Reference to map internal code with external ones (for example change Unit of Measure Code).

It's possible to upload an XML/XSL to pretty format the e-invoices for printing. This is one of the mostly used stylesheet in Italy: https://for.assosoftware.it/assoinvoice 

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Exchange Profile

You can define several e-invoice exchange profile, one for each provider that you use. If you don't have a provider but exchange the invoices manually, select "Download/Upload" transport.

In the "Document Exchange Profiles" page select "Italy E-Invoice" as format and enable it.

Prepare an invoice for sending

In the "Posted Sales Invoices" page (or "Posted Sales Credit Memo") select the action "Document Exchange" and select the export option. For each selected document an E-Invoice is created.

Sales and Purchases E-Invoices

The pages "Italy Sales E-Invoices" and "Italy Purchases E-Invoices" allows you to view and filter all e-invoices created or received. It's possible to:

These pages are very important to assert that all sales and purchases invoices have been posted.

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Enhanced "Fattura Stamp" Management

"Fattura Stamp" is a special and mandatory tax if the sales document has no VAT. The "Stamp" can be only declared and paid by company or declared and charged to customer.

To better automate this process, new fields are added to "Sales & Receivables Setup" page:

  • Default Fattura Stamp Amount 
  • Fattura Stamp Threshold (value over which the Stamp is applied)
  • Fattura Stamp G/L Account (G/L Account to charge the customer)
  • Fattura Stamp Description (description of charge invoice line)

To use the function press the Assist Edit on "Fattura Stamp" on "Sales Invoice" Page.

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VAT Shareout "Ventilazione"

VAT Shareout ("Ventilazione" in Italy) is a specific VAT calculation tipycal of small business that handles multiple VAT rates.

These business can declare to government that:

To pay the right taxes, these business need to calculate "Ventilazione" that is VAT rate to apply to sales proportionally to purchases.

The calculation is made starting from the 1° january of each years to the end of each VAT period.

Example

Month VAT rate Purchase amount Shareout %
January 4 % 10.000 16,53 %
January 10 % 33.000 54,55 %
January 22 % 17.500 28,92 %
Total
60.500 100 %

The aggreate sales of January are 97.000 so the VAT to pay is:

VAT rate Shareout % Sales amount (incl. VAT) VAT amount
4 % 16,53 % 16.034 641
10 % 54,55 % 52.914 5.291
22 % 28,92 % 28.052 6.171
Total 100 % 97.000 12.103

New purchases of February increase previous totals and generate a new shareout for February sales:

Month VAT rate Purchase amount Shareout %
January + February 4 % 22.000 18,72 %
January+ February 10 % 59.500 50,64 %
January + February 22 % 36.000 30,64 %
Total
117.500 100 %

And so on...

Setup

In "VAT Posting Setup" table mark interested purchase lines for "base" in the shareout calculation.

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Also mark the sales lines:

For lines to be sharedout is necessary also to specify the G/L account for reversing the calculated VAT (sales are posted "included VAT" and need to be reducted for the amount of VAT).

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Before VAT settlement, run and post VAT shareout calculation.

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Mandatory Split Payment

This function adds a warning before post of Sales Invoices if the "split payment lines" have not be added in the document.

"Split Payment" is an Italian regulation that allows to reverse VAT amounts in invoices for the Public Administration. Reverse is done adding negative "full VAT" lines in the invoice. These lines are added manually in the standard version.

This function is useful in batch posting process to avoid to forget "split payment lines".

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Enhanced Fiscal Report

A complete set of fiscal report with mandatory Italian regulatory informations:

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Electronic VAT Settlement

This Document Exchange Format allows to export the electronic declaration of VAT settlement (LIPE).

Export parameteres are defined in VAT Posting Setup, after simply run the Document Exchange action in Periodic VAT Settlement List.

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Interest on Arrears Fin. Charge

This function allows to create Finance Charge Memos starting from Interest on Arrears as defined by Italian law.

Finance Charge Memos has been adapted and integrated with e-invoicing.

Simply run the report "Create Finance Charge on Arrears"

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"Prorata" management

Italian regulation determines that some business, that has more purchase than sales, must always apply undeductible VAT.

Undeductible rate is arranged every year.

Simply run the action "VAT Prorata" from VAT Posting Setup.

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Shipping information in Sales & Purchases

Italian regulation requires mandatory shipping information in sales / purchase return shipment ("DDT" "Documento di Trasporto").

These information has been added in various documents, for example:

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Withholding Tax improvement and declaration

Every year in Italy is mandatory to export electronically the payed withholding taxes.

Tax records must be enriched with additional information.

A new Document Exchange format has been added.

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INPS at posting (ENASARCO)

Some salespersons in Italy are subject to "ENASARCO" tax. 

These salespersons are handled as vendors. This function adapts the standard "INPS" management to accomplish "ENASARCO" management.

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VAT exemption

Italy regulations determines to not apply VAT on some sales transaction. These sales are made in "VAT exemption".

Each exemption is numbered and can be used:

Used VAT exemption must be exported in e-invoiced and related to each document line.

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Misc IT localization functions

List of miscellaneous functions added to IT localization.

ITXX004A Recalculate payment % from amount
ITXX005A Check external document no. by year
ITXX007A Enhanced RIBA/RID (dishonored import, RID+ management...)
ITXX009A Fiscal code on salesperson
ITXX010A Fattura PA improvement (default "CIG", "CUP", "CommessaConvenzione"...)
ITXX012A Default operation type for credit memos, customer and vendor
ITXX015A Italy VAT and e-invoicing also in Finance Charge Memos
ITXX017A PEC E-Mail on company info
ITXX018A "Forgotten" purchase invoices (utilities for invoices electronically received in a year and posted in the next one)
ITXX020A Massive bill recall
ITXX022A Close bank receipts at due date
ITXX025A Copy setup VAT Identifier in Split Payment Lines