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2117870 - Split Payment 2015 - Customizing Solution

Version 5 Type SAP Note
Language English Master Language English
Priority Recommendations / Additional Info Category Customizing
Release Status Released for Customer Released On 20.06.2017
Component XX-CSC-IT (Italy)

Please find the original document at https://launchpad.support.sap.com/#/notes/2117870

Symptom

The "Legge di Stabilit" (n.190/2014), article 1, comma 629 letter B introduces the new art. 17-ter al DPR
n.633/72 for VAT and previews a new method of tax payment called "split payment".

The new law establishes that the public administration buying goods and services, should pay the "value
added tax" directly to the government, which is debited to them by the supplier.Therefore, for the supply of
goods and services provided to public entities, the latter should pay the IVA, which is debited to them by the
supplier on the invoice, directly to the government and not to the supplier (vendor).

In addition, there is no reference of this new model in the community regulations (direttiva n.2006/12/CE),
since the enforcement of such is dependent on a specific authorization of the EU, according to art. 395 of the
instructions.

The EU has authorized this special regime until 30/06/2020

The MEF communication from January 9th, 2015 gives evidence that the scheme of opperational decree (in
draft version) points out that the mechanism of "payment split" will be applied to all invoice operations from
1st of January, 2015 (tax payment after this date).

The italian government with decree 50/2017 (published on 24/04/2017 ) has enlarged the list of companies
that are subject to split payment regime.

See attachment for law reference.

Other Terms

split payment;

Reason and Prerequisites

The Split Payment is applicable to the Public Administration (identified by the subject previewed in the new
article 17-ter del DPR633/1972), and to private companies identified by DM 50/2017.

The payment split apply also to self-employer which is supplying services subjected to withholding tax.

Solution

Attached you can find the SAP customizing solution.

Example of the process:

2017 SAP SE or an SAP affiliate company. All rights reserved

2017-06-23 Page 2/2
Accounts receivable:

The supplier issues an invoice to the PA in an electronic way, only with the addition of this new
regulation sentence IVA "VERSAMENTO IVA A VS CARICO EX DPR 633/72 ART. 17-TER"
The Public administration should pay directly the IVA debited on the invoice.
The supplier closes the customer position, for the IVA amount, reducing the IVA debit value, to
compensate its debit.
these invoices will be posted into sales register but not in the vat settlement
The Public Administration pays (the supplier receives) in the expected due date, the taxable base
amounts.

Accounts Payable:

We kindly suggest to handle split payment processing on payable as "internal reverse charge", the
ESA ESE procedure should be extended to include split payment scenario with reference to article 17
of DPR 633/72 as following: DPR 633/72 art. 17-ter modificato ex DL 50/17 art. 1, operazione B2B con
scissione dei pagamenti/split payment"
These invoices will be posted into input vat register and output vat register , this proces will
compensate the input vat and output vat

This document is referenced by

SAP Note/KBA Title

2150272 ETHIM_TAX: Problems with split payment procedure (Italy)

Attachments

File
File Name Mime Type
Size

150109_MEF_Comuunicato_SplitPay
467 application/pdf
SOLO dal 1°Gennaio.pdf

Customizing_Solution_Split_Payment.docx 100 application/vnd.openxmlformats-officedocument.wordprocessingml.docume

Approfondimenti sullo Split Payment.docx 157 application/vnd.openxmlformats-officedocument.wordprocessingml.docume

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