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Sep 21, 2020 at 09:39 AM

Italian localisation: Reverse charge


Dear Expert:

We have an Italian legal requirement called reverse charge.

Reverse Charge (or Self-Assessment) for European, Swiss and some types of Italian (i.e cleasing service) transactions. The reverse charge provides that the customer of the service pays VAT directly instead of the supplier. The effect of the reverse charge is, therefore, the shifting of the VAT charge from the seller to the buyer, with consequent payment of the tax by the latter. The buyer produces a Self Billing Invoice to be registered both in the VAT register of invoices issued and received. From a legal point of view, goods and services are treated indistinctly. The Reverse Charge is applide using specific VAT Codes of Reverse Charge inbound and outbound. Legal requirement: D.L. 853 del 19/12/1984.

What are those specific tax codes ?

To track those invoices (created with reverse charge), should we ''Create Advance Return on Sales/Purchase Tax'' with Session Name ''RFUMSV00'' ?

Does any one know how can we handle this topic in S4HC ?

Best Regards,