Deferred Tax: Italy
In Italy, a special ruling applies to the remittance of tax on sales/purchases on goods sold to public institutions such as universities, hospitals, or government departments. In such cases, if payment is not expected in the near future, you can withhold payment of the tax on sales/purchases until the invoice is paid. The tax authorities therefore grant you an extension of time in which to remit the tax payable on sales made to public institutions.
The R/3 System provides the program RFUMSV25 for posting deferred taxes. This program is normally run on a weekly basis, and transfers the tax on sales/purchases amount of an invoice from the "Deferred tax" account to the normal output tax account.
Since invoices for such sales remain unpaid for an extended period, it is possible that the tax rate can change during this period, in which case you would use program RFUMSV35, which debits the customer with the invoice difference and creates a letter to the customer. The form for this letter is F_RFUMSV35_10. You can modify this form to meet your requirements. The form must be assigned to the program.