IT Localization
- Activity Code
- Electronic Invoicing (IT)
- Enhanced "Fattura Stamp" Management
- VAT Shareout "Ventilazione"
- Mandatory Split Payment
- Enhanced Fiscal Report
- Electronic VAT Settlement
- Interest on Arrears Fin. Charge
- "Prorata" management
- Shipping information in Sales & Purchases
- Withholding Tax improvement and declaration
- INPS at posting (ENASARCO)
- VAT exemption
- Misc IT localization functions
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).
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:
- "Company Type" (for example "01" for normal tax system)
- "VAT Registration No." (in ITxxxxx format)
- "Fiscal Code"
- Complete name and address with country code and county
- "Liquidation Status"
- "REA No." and "Registry Office Province"
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:
- "VAT Registration No." (in ITxxxxx format)
- "Fiscal Code"
- Complete name and address with country code and county
- "PA Code" or "Send E-Invoice via PEC"
"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
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:
- Delete and recreate the wrong E-Invoices
- Export the E-Invoices as original XML o formatted HTML
- Massive send or receive the E-Invoices
- Automatically create new vendors
- Automatically create purchase invoices or credit memo by predefined rules
These pages are very important to assert that all sales and purchases invoices have been posted.
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.
VAT Shareout "Ventilazione"
These business can declare to government that:
- Purchases are well divided per VAT rate
- Sales are made in aggregated form, without applying any VAT rate
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.
Also mark the sales lines:
- That ones aggregated "to be sharedout"
- That one after calculation "sharedout"
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).
Before VAT settlement, run and post VAT shareout calculation.
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".
Enhanced Fiscal Report
A complete set of fiscal report with mandatory Italian regulatory informations:
- Fixed Asset Book
- G/L Book
- VAT Register
- Sales Shipment
- Transfer Shipment
- Purchase Order
- Sales Credit Memo
- Sales Invoice
- Sales Draft Invoice
- Sales Order
- Issued Reminder
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.
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"
"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.
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:
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.
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.
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:
- Once
- Until the maximum amount
Used VAT exemption must be exported in e-invoiced and related to each document line.
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 |