In order to facilitate the client and the tax and accounting professionals to the correct registration of the fiscal documents produced by us we have written this short but eloquent page where you can find all the information and the relative references, for the correct registration of our invoices. If you have encountered accounting difficulties of any kind, you are invited to continue reading as you will find all the answers to your questions.
It should be remembered that the brand Managedserver.it refers to the limited liability company LEAD MAGNET SRL established in the municipality of ARAD in Romania in February 2018 as per the following document.
As this, being the company established in an intra-community country is subject to the regulation concerning the free exchange of goods and services within the European community and all the obligations relating to the reverse charge or reverse charge which will be detailed below.
Reverse charge or reverse charge.
Il reverse charge VAT also called Reversal of VAT accounting represents an accounting and fiscal mechanism whose purpose is to eliminate theVAT evasion, one of the most evaded taxes in the European panorama. In fact, the VAT reverse charge was introduced by EU legislation precisely to combat tax evasion and avoidance for VAT purposes.
From a technical point of view, the VAT reverse charge is a method of applying value added tax that allows the tax burden to be transferred from the buyer to the seller.
Il normative reference of the VAT reverse charge in Italy is represented by article 17, paragraphs 5 and 6 of Presidential Decree 633/1972 (so-called "VAT decree»). Recently, Presidential Decree 633/1972 was the subject of a broad reform due to the introduction of the quarterly spesometro by means of Legislative Decree 193/2016. This change, however, did not affect the part of the VAT legislation relating to the reverse charge.
How does the reverse charge work?
What e how it works the VAT reverse charge? In practical terms, the VAT reverse charge represents that technical accounting mechanism as a result of which:
- il seller issues an invoice without charging the tax (as it normally should);
- thebuyer integrates the invoice received with the reference rate for the type of operation invoiced and, at the same time, proceeds with the double entry in the purchase register (purchase invoices) and in the sales register (issued invoices).
More simply, our company will issue an invoice net of the taxable amount, i.e. without VAT of 19% (rate currently in force in Romania) indicating on the invoice the intra-community nature of the service and once the customer has received the seller's invoice, he will register it by integrating it. the VAT rate in force in your country (currently 22% in Italy).
Wanting to propose a practical example, let's assume that the customer has bought a hosting package worth € 100 + VAT from LEAD MAGNET SRL.
- LEAD MAGNET SRL instead of issuing an invoice for 100 Euros of taxable amount + 19 Euros of VAT, will issue an invoice for 100 € of taxable amount, remembering in the invoice with an appropriate wording, the nature of the intra-community operation and therefore not adding the VAT.
- Once the CUSTOMER has received the invoice, he will have the obligation to register the invoice, and pay the VAT in reverse charge of 22% on the taxable amount of € 100, or of € 22 which will be registered and paid as VAT directly to the Italian state and not to us or to the Romanian state.
Lack of VIES membership
For the year 2018 due to slow bureaucratic formalities, our company is not yet included in the VIES database, or (VAT Information Exchange System) which is an information exchange system between member countries of the European Community established in order to allow correct taxation.
Although the belief that registering with the VIES is mandatory for exchanging goods and services is rather rooted within the European community, it should be noted that according to the consolidated orientation of the European Court and also of the Court of Cassation failure to register with VIES would only lead to a lack from a formal and non-substantial point of view.
That is, for both the recipient of the invoice and the person who issued it, everything that could be applied in the presence of a regular and normal VIES registration, such as reverse charge operations, can apply.
More specifically, the possession of the VAT identification number e the registration in the Vies database are elements with only formal relevance for the purposes of assigning the status of VAT taxable person in intra-community relations. The application of the VAT exemption regime, on the other hand, requires the verification of substantial requirements, such as the independent exercise of an economic activity.
The principle was affirmed by the Italian Association of Chartered Accountants with the rule of conduct no. 204 issued on 19 September 2018. This principle is valid both for the sale of goods and for the provision of services.
Aidc's approach is based on the logical interpretation of Community legislation and on the prevailing orientation of the EU Court of Justice, according to which the use of the VAT identification code is a formal and non-substantial element of the transaction, while the requirement of subjectivity passive VAT presupposes the presence of certain factors, in particular the exercise independently and in any place of an economic activity.
The lack of possession of the identification number for VAT purposes can affect the nature of the transaction only in the event that its absence causes the lack of certain proof that the substantial requirements have been met.
In any case, wanting to remain as transparent as possible in compliance with EU laws, here is a list of seven references to sector publications:
For any problem concerning the registration of accounting documents, please contact us.
VIES situation updated from 2019.
From 25 January 2019 our company is correctly accredited and included in the European VIES interchange system.
Specifically, the VAT / TVA identification code assigned is as follows: RO40490297