- Split payment regime follows ordinary VAT decree rules for invoicing.
- Invoicing occurs at the time of the operation, regardless of when the tax becomes due.
- This applies even with contract-based withholdings at payment time.
- The tax becomes due on the payment date, despite the invoice being issued earlier.
- The option for early due date at invoice receipt or registration remains.
- A public entity entered a contract for electricity and related services with a supplier.
- The contract includes a 0.5% withholding on the net amount, payable only at the end of the contract.
- The entity requested the supplier to invoice 99.5% of the services monthly and the remaining 0.5% at the end of the contract.
- The supplier invoiced the full amount, including the withholding, citing accounting system limitations.
- The entity, under split payment, pays the VAT directly to the Treasury.
- The entity is obligated to pay the tax by the 16th of the month following the due date.
- The entity argues that the withholding portion’s due date is at the end of the contract, based on the VAT decree.
- The entity seeks clarification on the correct approach for the withholding portion.
Source: commercialistatelematico.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
