Tax in Italy - Q4 IVA for 1st year in the "ordinary" tax regime
Thread poster: Oliver Lawrence

Oliver Lawrence  Identity Verified
Italy
Local time: 20:57
Partial member (2008)
Italian to English
+ ...
Dec 12, 2011

Here's one for colleagues working in Italy.

I am in my first year in the "regime ordinario", after 3 years in the "regime agevolato per nuove iniziative", and the due date for the advance payment of the 4th quarter IVA is approaching (Dec 27). This is generally calculated as 88% of the IVA paid in the same quarter of the previous tax year - however as you don't pay IVA quarterly under the regime agevolato, there is no last-year's figure on which to base the calculation.

Agenzia delle Entrate resolution number 157/E of 23/12/2004 says that people in my position don't therefore have to pay the acconto for the 4th quarter ("questi soggetti, in assenza dell'obbligo di effettuare le liquidazioni periodiche nell'anno precedente, non sono tenuti al versamento dell'acconto IVA per il quarto trimestre nel anno che rappresenta il primo anno in cui il regime delle nuove iniziative cessa, per mancanza della base di riferimento", paraphrasing slightly).

Is this particular resolution still applicable? The Agenzia delle Entrate website doesn't keep resolutions going back that far.

What I am driving at is that I don't think that I should have to pay the acconto for the 4th quarter, but my accountant says I do, and what's more that the 88% calculation is based on the IVA for the whole of 2010. This would result in an overpayment of several thousand euros (which I would then have to wait until summer 2012 to get back as a credit). Naturally, I would prefer to keep my money in my pocket, if legally possible.

Your views?

Thanks in advance,
Oliver.

[Edited at 2011-12-12 15:02 GMT]


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Maria Rosa Fontana  Identity Verified
Italy
Local time: 20:57
Member (2008)
English to Italian
+ ...
I think you can keep it Dec 12, 2011

Naturally, I would prefer to keep my money in my pocket, if legally possible.

Your views?

Thanks in advance,
Oliver.

[Edited at 2011-12-12 15:02 GMT]


Please have a look here:

http://www.vitevino.it/wp-content/uploads/serviziimprese/Circolare%20sull'acconto%20IVA%20anno%202011.pdf

Sono esonerati dal versamento dell’acconto Iva i soggetti che
si trovano in una delle seguenti situazioni:


contribuenti che sono usciti dal regime delle nuove
iniziative con decorrenza 2011;



It looks like the "Risoluzione 157/E del 23/12/2004" is still valid.


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Eileen Cartoon  Identity Verified
Local time: 20:57
Italian to English
I am not an accountant but... Dec 12, 2011

... you are probably right. Iknow for certain that, even when I know I have earned more this year than last, I still pay according to last year's amount. Therefore, if you were just starting up a business it would follow that there was no last year and so you don't have to pay. If you want, though, you could calculate the invoices you have issued for this last quarter and pay 88% of the IVA due for those. That way you will have paid something and everyone is happy. Ther is no way it would have to be 88% of your income for the whole year (maybe 88% of a quarter of the year's income).
Eileen


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Oliver Lawrence  Identity Verified
Italy
Local time: 20:57
Partial member (2008)
Italian to English
+ ...
TOPIC STARTER
Thanks for your comments Dec 16, 2011

I have discussed with my accountant and agreed to go with one of the alternative routes, which allows me to avoid overpaying and pointlessly accumulating credit. Would've been nice, of course, if he'd pointed this out in the first place...

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Tax in Italy - Q4 IVA for 1st year in the "ordinary" tax regime

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