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Question for Italian companies: vendors different and multiple tax rates

Raffaella 11 months ago in Vendor Portal updated by Bartosz Budzyński 11 months ago 1

Hi there, 

we are setting up the software and we cannot find how to setup different rates for different vendors (4% INPS, -20% ritenuta d'acconto, +22% IVA). 

How are you dealing with this issue? 

Thank you in advance

Hi,

While working on this issue with some of our Italian clients we figured out with their accountants that having combined percentage applied works for most cases. 

First case was negative tax value (Traduttore senza P.IVA) - this is a simple case, as you can set negative tax value in XTRF.

Then we get cases like Società/Professionista con iscrizione alla cassa previdenziale standard - when you first subtract 20% and then and 20% to the base amount. 


Operations, as far as I'm aware, are done one-by-one, so:

from 1000 EUR you subtract 20% and get 800 EUR, 

then you add 20% to this 800 EUR, with the result of 960 EUR.

No matter then numbers if this is the way taxes are applied, they will always combine to particular percentage of base amount, in this case 96%. Therefore you just need to set up combined rates in the system with appropriate names.

Please keep in mind that cases mentioned above might be client-specific and you should always talk to your accountants if that's the way that works in your particular situation.