New regime VAT payment (cash) available for professional developers

The new VAT regime for cash will soon be in place. Even before sending to the Official Journal, the Department of Finance issued a decree giving effect to the provisions for the settlement of VAT according to the mode "cash", contained in the Development Decree (Decree 83/2012, Art. 32a ).

With the new regime in cash, from 1 December, the possibility for the issuer of the invoice, to pay VAT only to pay the fee and will be expanded to a greater number of taxpayers. Will benefit businesses and professionals with a turnover of up to € 2 million. In addition to raising this threshold (in the current regime defined by art. 7 of Decree 185/2008, amounted to EUR 200 thousand), the novelty is that once exercised the option to join the scheme will be applied to all invoices issued and received, plus the buyer or the buyer will deduct VAT without waiting for the payment of the consideration.

The main features of the new regime

Who adheres should not anticipate the payment of VAT in the case of non-payment of the fee by the transferee or purchaser, provided that the latter is also a taxable person. It will also include professionals, and must exercise an option, the details of which will be specified by order of the Revenue. The option will take effect from 1 January of the year in which it is performed or the date of commencement of operations in this case is initiated during the year. Only this year, the choice of the cash will be effective for transactions on or after 1 December 2012.

The VAT becomes chargeable on receipt of payment of the fees and will be, however, one year after the "moment of the transaction." For those liquid VAT for cash, the right to deduct tax on purchases made will be built at the time of payment of the sales. In contrast, for the transferees or purchasers of the operations performed by opting the right to deduct arise in any case at the time of the transaction, except that the transferees or purchasers have also opted for the settlement of VAT for cash .

Exclusions

Are excluded from the VAT rules for cash:

- Operations carried out by the parties as part of special procedures for the determination of the value added (eg. Agricultural producers, travel agencies, etc. ..);

- The supply of goods and provision of services to persons who do not act in the exercise of business, the arts or professions;

- Operations carried out against persons who fulfill the VAT using the reverse charge mechanism;

- The operations against the State or public bodies, Local Health Units, chambers of commerce, etc.., Have been subject to deferred payment (article 6, paragraph 5 DPR 633/1972).

The advantages of the new regime

According to the National Confederation of Crafts and Small and Medium Enterprises the measure "as well as having the advantage of forcing the company or professional who issues the invoice to pay VAT only to the payment of the consideration, solves many problems of the discipline established by the current regime (see Article 7 of the Law Decree no. 185/2008). " Regime - please note - has extended the regulation of transactions subject to deferred VAT payable on supplies of goods and services supplied in relation to businesses and professionals.

The measure and its implementation should solve problems that did not allow the regime now in place to be able to operate broadly. It will be essential, so that the scheme could be extended, bringing the desired benefits, having predicted that the tax deduction is regardless of the payment of the consideration: the customer will no longer have reason to object if you receive a bill deferred.

Also - estimated by CNA - that "the choice of that scheme up to a maximum capacity of 2 million Euros, over time, they might become the VAT settlement cash to the chargeability of the regime of almost all businesses. In fact, it could affect more than 95% of subjects VAT '.

25/10/2012

----------------------------------------

Translated via software

----------------------------------------

Source:

Italian version of ReteArchitetti.it