KudoZ home » Italian to English » Law: Taxation & Customs

Compensazioni sull'IVA

English translation: offsetting of VAT

Login or register (free and only takes a few minutes) to participate in this question.

You will also have access to many other tools and opportunities designed for those who have language-related jobs
(or are passionate about them). Participation is free and the site has a strict confidentiality policy.

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)

Italian term or phrase:	Compensazioni sull\'IVA
English translation:	offsetting of VAT
Entered by:	Laura Bucciol

Options:
- Contribute to this entry
- Include in personal glossary

15:36 Feb 23, 2011

Italian to English translations [PRO]
Bus/Financial - Law: Taxation & Customs

Italian term or phrase: Compensazioni sull'IVA

Hi everybody,

I have trouble translating "compensazioni sull'IVA" into English. I found "reverse charge procedure for VAT" but I believe it refers only to transactions within the EU and I think it doesn't work in my context.

"Nel 2010 il fabbisogno del settore statale è diminuito di quasi 1,5 punti percentuali del PIL rispetto all'anno precedente. Sulla base delle informazioni disponibili, l'indebitamento netto si sarebbe portato al di sotto dell'obiettivo del 5 per cento del prodotto. Il miglioramento rifletterebbe principalmente una contrazione delle spese in conto capitale. La dinamica delle entrate, dopo la caduta del 2009, sarebbe tornata positiva, anche grazie alla introduzione, dal gennaio 2010, di nuovi vincoli alle COMPENSAZIONI SULL'IVA."

Can you help me?

Laura Bucciol
Italy

offsetting of VAT

Explanation:
compensazioni here refers to the offsetting of any VAT paid on purchases against due to the state.

The reverse charge mechanism is slightly different in that it is a way of accounting for intra-Community exchanges (not subject to VAT), but does not involve any money changing hands or any offsetting of different VAT transactions. Under the reverse charge, the recipient basically offsets the VAT transaction against itself, thereby registering its existence but in a tax neutral manner.