Split Payment

Split Payment

With the stability law for the year 2015 (L.23/12/2014 n.190), art. 1 paragraphs 629-633, the regulation introduced art.17-ter in the VAT Law and provided that: starting from the 1st of January 2015, the VAT charged on the invoice for the supply of goods and services to the Public Administrations is paid to the Treasury directly by the Institutions themselves. The Revenue Agency with Circular 1E of 9 February 2015 (attached) extended the subjective scope of application of the regulation to the Regional Union of the Chambers of commerce.

Therefore, starting from 9 February 2015, the VAT charged on the invoice will not be paid to the supplier and will be paid by us directly to the Treasury. The invoices sent to us must be issued with the following annotation: “Division of payments ex art.17-ter D..633/1972”.

Lastly, it should be noted that professional services subjected to the withholding as income tax are excluded from the split payment mechanism.Split Payment

Last modified: 24 May 2021