Accounting Bolla
  • Corporate
    • Business Incorporation >
      • Registered Business and Corporate Secretarial
      • Offshore Solutions
      • Certificate of Good Standing
      • Internationalization
    • Corporate Tax Services
    • EU VAT
    • Escrow
    • Data Protection
    • Corporate Restructuring
    • Generational Handover
    • Trademark Registration
  • Advisory
    • Business Plan & Startup Service
    • Mergers & Acquisitions >
      • Investing in Europe & Globally
      • Business Valuation
    • Forensics Accounting >
      • Derivatives and Complex Financial Calculations
    • Risk Assessment & Risk Advisory
    • Expert Witness & Litigations Support
    • Web Analysis & Web Optimization
  • Outsource
    • Bookkeeping
    • Payroll
    • Managerial Accounting
    • Social-Environmental Performance
    • Integrated Reporting
  • Individuals
    • Self assessment
    • Personal Tax Planning
    • Property Tax and Estate Planning
    • Inheritance Estate and Taxes
    • Wealth Protection
    • Trustee Services
  • Expat Desk
    • New Residents Tax Regime
    • Immigration
    • Flat tax Italy
    • Airbnb
    • Retire to Italy
  • Blog
  • Contacts

REVERSE CHARGE

8/25/2017

0 Comments

 
Reverse charge is a particular accounting procedure regarding VAT; basically, the input VAT is not charged by the supplier (not included in its invoice), instead the client has to "integrate" its invoice and is liable to pay the VAT.
The reverse charge procedure is somewhat confusing and it has changed multiple times throughout the years; it is crucial to treat these invoices properly, as they have to be disclosed separately in the annual VAT return and they have specific bookkeeping features.
Read the full article below to understand how to treat the reverse charge procedure and how to avoid unwanted fines and penalties!

What is the reverse charge?

Reverse charge is an accounting procedure involving the reversal of VAT duties and obligations from the seller to the purchaser.
This process applies only in B2B operations​.

Which activities are subject to the reverse charge?

The Italian VAT law clearly identifies which activities are subject to the reverse charge, as follow:
  • Intra EU purchase of goods and services
  • Sale of gold for investment purposes (not jewellery)
  • Building renovation and restructuring activities
  • Sale of commercial property
  • Building contractor activities
  • PC, tablet, and cellphone sale
  • Building cleaning, levelling, and plant design activities

If I receive a reverse charge invoice, what should I do?

First of all, the client has to check if the invoice does not include any VAT and it shows instead the correct law article.
After that, the client must register the invoice remembering to include both in the sale and purchase VAT registrar (known as sterilization process).
Finally, the client must write on the invoice the applicable amount of VAT.

Which fines and penalties apply?

There are many fines and penalties applying to the wrong reverse charge application, such as:
  • Reverse charge adoption instead of the "regular" VAT; fine between € 250 and €  10,000
  • Reverse charge adoption instead of exempt VAT; fine between 5% and 10% of the VAT base, minimum fine €  1,000
  • Wrongful bookkeeping; fine between 5% and 10% of the VAT base
  • Wrongful VAT return; fine between 90% and 180% of the VAT due

How can Accounting Bolla help?

Accounting Bolla can help you with:
  • Adoption of the correct VAT treatment
  • Proper bookkeeping
  • Correct VAT return filing
Fine and penalties can be harsh, be smart! Choose us!

0 Comments



Leave a Reply.

    RSS Feed

    Categories

    All
    Business And Companies' Establishment
    Economy In Italy
    Employees Management In Italy
    Financial Supports
    Fiscal Calendar
    Import Export
    Imposte Sul Reddito In Italia
    Income Tax
    Investing In Italy
    Invoices In Italy
    Pensions
    Real Estate Taxes
    Residency And Citizenship In Italy
    Salary
    Short Term Rental In Italy
    Sport
    Tasse
    Taxes
    Tax Return Italy
    Vat
    Visa
    Working In Italy

    Archives

    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    December 2019
    April 2019
    October 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    October 2017
    September 2017
    August 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017

    Author

    ​After moving back to Italy from the United States in 2013, I realized how much an accounting and tax firm was needed to help expats living in Italy to comply with the local tax regulations.

    My idea seeded when I had to go through the complicated Italian tax system myself, and that’s when I started Accounting Bolla. Its mission is very simple, yet utopian: to make Italian taxes easy and manageable.

    At Accounting Bolla we aim to help our clients with straightforward solutions.

    Since 2017 we can proudly claim to have helped thousands of clients in optimizing their taxes and in safely investing in Italy.

    We help EU based ecommerce business selling in Italy. If you are confused about Italian VAT we'll handle that.

​

Corporate

Business Incorporation
Corporate taxes
Registered business
Offshore solutions
​Internationalization
EU VAT
Certificate of Good standing
Escrow
Data protection
Corporate restructuring
Generational Handover
Trademark Registration

Individuals

Self Assessment
Personal Tax Planning
​​Property Tax
Inheritance Tax​
Wealth protection
Trustee Services

Expat Desk

New Residents regime
Flat tax
​Immigration and Citizenship
Airbnb
​Retire to Italy
Partita IVA setup

Advisory

Business Plan and Startup
​Mergers & Acquisition
Investing Globally
​Business valuation
Forensics Accounting
​Financial calculations
Risk assessment and advisory
​Expert witness litigation
Web performance optimization
Outsource
Bookkeeping
Payroll
​Managerial Accounting
Social and Environmental Performance
Integrated Reporting

ACCA Member

Foto

Dottore Commercialista

Foto

General Information

​Email us
​Privacy
Terms of Use
AccountingBolla
Piazza Gen. C.A. Dalla Chiesa n. 3
43121 Parma (PR)
VAT IT02783230341
© COPYRIGHT 2020. ALL RIGHTS RESERVED.

  • Corporate
    • Business Incorporation >
      • Registered Business and Corporate Secretarial
      • Offshore Solutions
      • Certificate of Good Standing
      • Internationalization
    • Corporate Tax Services
    • EU VAT
    • Escrow
    • Data Protection
    • Corporate Restructuring
    • Generational Handover
    • Trademark Registration
  • Advisory
    • Business Plan & Startup Service
    • Mergers & Acquisitions >
      • Investing in Europe & Globally
      • Business Valuation
    • Forensics Accounting >
      • Derivatives and Complex Financial Calculations
    • Risk Assessment & Risk Advisory
    • Expert Witness & Litigations Support
    • Web Analysis & Web Optimization
  • Outsource
    • Bookkeeping
    • Payroll
    • Managerial Accounting
    • Social-Environmental Performance
    • Integrated Reporting
  • Individuals
    • Self assessment
    • Personal Tax Planning
    • Property Tax and Estate Planning
    • Inheritance Estate and Taxes
    • Wealth Protection
    • Trustee Services
  • Expat Desk
    • New Residents Tax Regime
    • Immigration
    • Flat tax Italy
    • Airbnb
    • Retire to Italy
  • Blog
  • Contacts