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Italy: License for tax exemption (Lettera di esenzione)

Description

By law, a customer in Italy can be exempted from value added tax in certain circumstances.
The tax authorities issues a license to the customer (Lettera di esenzione) with a license number and the date on which the license is valid. The customer sends this license to a vendor, who must take the tax exemption into account when carring out invoicing. During the validity period of the license, the vendor cannot add any tax to the customer invoice. The vendor must also log all tax exemption licenses encountered during the course of the business year. The date of logging as well as a business year-dependant serial log number must be defined for the the tax exemption license. The vendor must also enter the license number and the date of tax exemption as well as the log number and the log date in every customer invoice.
Currently, the following two forms of license validity are supported:

1. Valid for a certain period of time
2. Valid for a transaction

You can control the Lettera di esenzione using the condition technique. You can control the Italian tax license by condition type LCIT.
You enter the license data in the condition master record screen.
Pricing takes into account whether or not the order or billing document created is exempt from VAT.
The preconditions for this are the following changes in Customizing, which are already maintained in the pricing procedure for Italy RVAAIT.

Change system parameters in customizing

The following settings need to be made for Italy in Customizing SD:

1. Define and assign pricing procedures:
The pricing procedure should contain the following lines:
Step Cntr Ctype Reqt AltCTy AltCBV ActKy
914 0 LCIT 33 37 MWS
915 0 MWST 10 27 MWS
2. Printing the invoice
The enhancements are contained in layout set RVINVOICE01. In order to be able to print the license data, you must set processing program RVADIN01 for billing documents in Assign forms and programs with entry routine ENTRY_ITALY.

Changes to the interface

Logging of tax exemption licenses is carried out in table TLIC. View V_TLIC is created for maintaining this table. Entries can be made here using transaction VFLI . You enter the license number, the log number and the log date in table TLIC.

Logging of tax exemption licenses

The existence of a log number or of a log date is not a requirement for the creation of a billing document. However, the standard print program for billing documents RVADIN01 is enhanced so that a billing document for a tax exempted customer can only be printed if the license number, the license creation date, the log number and the log date are all maintained.

Dependent functions

Invoice printing

The following appear in the invoice