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The Cash TAX regime, called also “cash-accounting”, has been introduced from European Directive no. 2010/45/UE, that modified the main VAT Directive no. 2006/112/EU.
The goal is to help small and medium-sized companies that encounter difficulties in paying VAT to competent authority before receiving payment from their customers. Member States has been allowed to introduce an optional cash accounting scheme in order to authorize companies to pay VAT not on the basis of invoices issued/received during the period, but according to the payment of the same.
In Italy the European Directive came into force in December 2012 and covers companies with a turnover not exceeding EUR 2 million, that can join this scheme by applying it to both active and passive operations.
It is clear that the opportunity granted by the European Union is very interesting and probably other Member States shall take it, considering the unfavorable international economic situation that affects first of all small and medium sized companies.
Perhaps not everyone knows… how to manage the deferred Tax exigibility.
Issued and received invoices are posted and listed in Tax Journal as not exigible. Tax settlement also includes these documents, but in the calculation of VAT to be paid such not exigible amounts are excluded. When an invoice is collected/paid, partially or totally, the related VAT becomes exigible and it will be included in the calculation of VAT to be paid in Tax settlement. As a consequence, adopting the cash tax regime VAT to be paid is no more calculated only as a difference between VAT on sales and VAT on purchases, but it has always to consider also exigible and not exigible amounts.
All this may seem complex, but with Mago.net the process is easy and automatic.
In Mago.net documents with deferred tax exigibility are marked as suspended tax documents and they are posted using special accounting templates. Exigibility of such documents is automatically generated by operations on payment schedules (clearing, bills of exchange, payment orders). General Tax Journal Summaries highlight exigible and not exigible amounts both of sales and purchases documents. Finally, special reports list such suspended documents in order to check amounts included in Tax settlement.
For further information about this topic you can ask to you reseller referral or visit our on-line Microarea Help & Information Center.
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