Taxable persons can opt for the cash accounting system on taxable transactions, only if their annual turnover doesn’t exceed EUR 2 million in the preceding year.
· Supplies that are exempted from the scheme are:
· Supplies made for non professional or non business activities;
· Supplies made under certain specific schemes;
· Supplies covered under the reverse charge mechanism and
· Supplies of pharmaceutical products and certain goods and services which are made to shareholders, associates or participants and to public bodies and institutions.
Few acquisitions subject to the reverse charge mechanism; intra-community acquisitions of goods and imports are also excluded from the scheme.
VAT overpayment under this scheme can be set off against other taxes, subject to terms and conditions applicable for such set off. For offsets higher than €15,000, the VAT credit is required to be certified by an Italian CPA or auditor. This provision to offset does not apply anywhere else in Europe, and is applicable only in Italy.
For more information on this topic email firstname.lastname@example.org
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