Note
Access to this page requires authorization. You can try signing in or changing directories.
Access to this page requires authorization. You can try changing directories.
This update automates the creation of split VAT lines on the Sales Invoice, Sales Credit Memo, Service Invoice and Service Credit Memo documents, by adding an action named Generate Split VAT Lines.
Overview
The new mechanism of split payment is introduced by the Stability Law 2015. It will translate the obligations of payment of the tax, in relations with public authorities expressly stated in the amended Article. 17 - the, Presidential Decree 633/1972, the transferor / lender to the public body; the latter, instead of paying the VAT to the supplier, the Treasury will pay directly. This is according to the terms and conditions laid down by decree of the Minister of Economy (MEF) issued shortly.
As of January 1, companies that have relationships with the PA (Public Administration) will have to manage with a focus such transactions, taking into account that the relevant VAT shall be recorded in the register sales, but does not contribute to the periodic VAT payment.
The system of the split payment will not apply to payments of services subject to withholding income tax; professionals, therefore, continue to exercise the VAT compensation for services rendered to the Public Administration.
Reference Information
| Reference No. | TFS127513 |
|---|---|
| Product Area | ERM |
| Discovered in | Microsoft Dynamics NAV 2015 |
| Title | Italy – Split Payment for sales to Public Entities for Microsoft Dynamics NAV |
| Released on | March 2015 |
Important Notice to Customers
We recommend that you contact your Microsoft Dynamics Partner before installing service packs or hotfixes. It is important to verify that your environment is compatible with the service pack(s), hotfix(es), or download(s) being installed. A service pack, hotfix, or download may cause interoperability issues with customizations, and third-party products that work with your Microsoft Dynamics solutions.
Important Notice to Partners
As per the SPA, it is non-compliant for partners to redistribute tax and regulatory updates to ERP customers not enrolled in the Business Ready Enhancement Plan. Partners can verify their customer’s status in VOICE. If they're not enrolled, Partners will need to get them current before they can distribute.
Installation
Before this update can be installed, the following prerequisites are required: Microsoft Dynamics NAV 2015 for Italy This update is available through Microsoft Dynamics NAV Cumulative Update 6 Note:
Existing customizations in objects that are included in this update file may break when you import the regulatory feature.
No data upgrade is required before you can use this feature.
Downloads
NAVIT2015_TFS127513.exe [1.40 MB - EXE]
Licensing
No new objects have been added through this update. Licensing refresh is not required.
Objects
The following object have been added / modified through this release:
| Type | No. | Name | Added/Modified |
|---|---|---|---|
| Codeunit | 6620 | Copy Document Mgt. | Modified |
| Table | 36 | Sales Header | Modified |
| Table | 37 | Sales Line | Modified |
| Table | 325 | VAT Posting Setup | Modified |
| Table | 5900 | Service Header | Modified |
| Table | 5902 | Service Line | Modified |
| Page | 43 | Sales Invoice | Modified |
| Page | 44 | Sales Credit Memo | Modified |
| Page | 47 | Sales Invoice Subform | Modified |
| Page | 96 | Sales Cr. Memo Subform | Modified |
| Page | 472 | VAT Posting Setup | Modified |
| Page | 473 | VAT Posting Setup Card | Modified |
| Page | 5933 | Service Invoice | Modified |
| Page | 5934 | Service Invoice Subform | Modified |
| Page | 5935 | Service Credit Memo | Modified |
| Page | 5936 | Service Credit Memo Subform | Modified |
Setup
The following setup steps are a guideline to be used for general orientation, and not a exact solution – this depends on your existing setup.
In page VAT Business Posting Group, create a new VAT Business Posting Group: "SPLIT".
In page VAT Product Posting Group, create a new VAT Product Posting Group: it can be named for example "Reverse22" it if reverses 22% VAT, description "Reverts Split VAT".
In page Chart of Accounts, create a new account, which will for the sake of this explanation have the following parameters:
No. = 5613
Name = IVA 22 Split Payment
VAT Bus. Posting Group = SPLIT
VAT Prod. Posting Group = Reverse22
Note: the name of the account will be present on the printed invoice, and since there is a legal requirement in Italy to mention on the printed invoice that it contains split VAT lines, you can include "split VAT" in the account name.
In page VAT Posting Setup, take note of all existing lines and decide which ones you want to make eligible for reversion. For all the lines you want to revert in further invoices, create a new line that will be used to reverse VAT for an existing (VAT Bus. Posting Group, VAT Prod. Posting Group) combination. This line could have the following values:
VAT Bus. Posting Group = SPLIT
VAT Prod. Posting Group = REVERSE22
VAT Calculation Type = Full VAT
VAT% = 22
Deductible % = 100
VAT Identifier = IVA22
Sales VAT Account = 5613 (this is the account you created earlier)
Reversed VAT Bus. Posting Group = SPLIT
Reversed VAT Prod. Posting Group = IVA22
Full VAT = When this option is used, the amount to post, with this particular combination of the VAT business posting group and the VAT product posting group, consists completely of VAT.
Note: The fields Reversed VAT Bus. Posting Group, Reversed VAT Prod. Posting Group are editable only on lines with Full VAT. If by mistake, the same combination of Reversed VAT Bus. Posting Group, Reversed VAT Prod. Posting Group is created on multiple VAT Posting Setup lines, then when the time comes, one of them will be picked randomly.
Usage
On the documents Sales Invoice, Sales Credit Memo, Service Invoice and Service Credit Memo, a new action is added: Generate Split VAT Lines. Invoking this action on a document which has lines, will automatically generate the reversing split VAT lines, if the posting setup is correct.
It is recommended to only generate split VAT lines after finishing the insertion of all the normal invoice lines. The reason is that, when split VAT automatically generated lines exist, any change, addition or deletion of invoice lines will trigger re-generation of the split VAT lines.
The automatically generated lines are read-only. They contain cumulated VAT reversed for a certain combination of VAT Bus. Posting Group, Prod. Posting Group. If multiple invoice lines exist, the VAT on the ones having the same combination of VAT Bus. Posting Group, Prod. Posting Group will be summed-up and a single split VAT line will be automatically generated for each group.
Updates, insertions or deletions in relevant fields of the invoice lines or header will trigger line re-generation, if automatically generated lines exist. The generated lines can be deleted. On an invoice with multiple lines, to delete all or multiple of the lines, please delete first the generated lines to avoid triggers and re-updates for each deletion.
Note: Orders and journals are not included. This means that posting a sales order will not include split vat lines, instead the user needs to copy lines to the invoice to post.
The Required Text on Report is solved by either by
using VAT clause (more information on MSDN), or by
using a descriptive name for the account used as Sales VAT Account on the reversing VAT Posting Setup lines.
Support Information
For technical support questions, contact your partner or direct your questions to the Support for Business hub: https://serviceshub.microsoft.com/supportforbusiness/create.