The 2015 Stability Law has introduced a significant novelty in VAT. All invoices issued by 2015 issued to the Municipality must indicate the term "payment disbursement - Article 17 ter DPR 633 / 72": This means that the supplier will be paid the only taxable amount, while the VAT will be paid to the state directly from the municipality on a monthly basis, as is the case with the withholding tax to the professionals.
In this regard, it is clarified that the methodology has the only exception in relation to operations already subject to withholding tax.
The "split" arrangement goes hand in hand with the extension of the "Reverse charge" mechanism to the performance of cleaning, demolition, installation and completion of buildings related services.
It is important to clarify that the application of Reverse Charge applies to taxpayers: the City as public entity becomes a taxpayer only in cases where the service in question falls among the activities relevant to VAT purposes. Therefore, in all cases of extension of the Reverse Charge mechanism (cleaning, demolition, installation and completion) which, however, concern Institutional activities, the "final consumer" is considered to be split payment rather than Reverse Charge.
The activities for which the Municipality acts as taxable persons are mainly the following:
- School meals;
- The split payment must be applied to all activities of the Municipality;
- Only business activities and only in the case of cleaning, demolition, installation and completion services, Reverse Charge will be used for which the supplier will issue the invoice without VAT.
Of course, in case of doubt, the question will be examined from time to time