This chapter includes the following topic:
Important:
The Agenzia delle Entrate (Italian Tax Authority) occasionally changes the requirements for generating the yearly list and the black list reports. You should verify that you have the most current information about generating these reports before you run the process to generate these reports.
If you used the JD Edwards World software for Italy to process the yearly list and the black list reports prior to November, 2013, you should note:
These programs are no longer used:
Workfile Generation (P74Y0100)
Flat File Generation (P74Y0200)
Customer Report (P74Y0501)
Suppliers Report (P74Y0502)
Workfile Generation (P74Y0012)
Flat File Generation (P74Y0014)
The setup for contracts and contract relationships is not required for reporting beginning in November, 2013.
The values required in the Special Handling Code field of the Document Type - Annual Report (74Y/DT) UDC are changed. You must enter the changes for this UDC table before generating the reports.
The system uses UDC 74Y/IV instead of UDC 00/IV to determine the classification of tax rate/areas.
The Agenzia delle Entrate (Italian Tax Authorities) published regulations for the Multi-Purpose VAT Communication relevant transactions, which is also known as Nuovo Spesometro. The regulations require that you periodically report information on sales and purchase transactions to the Italian government.
You include the transaction information that you must report in these declarations, which you submit in an electronic file:
Yearly List (Spesometro)
Black List Declaration
San Marino Purchases Declaration
You use the Multi-Purpose VAT Communications to submit each of the declarations. In the JD Edwards World software for Italy, you run the IYL Elect. Communications -TXT Generator program (P74Y0047) to generate the Multi-Purpose VAT Communication. The program populates different sections for the communication based on which declaration you choose to generate. For example, if you choose to generate the Black List Declaration, the program generates the Multi-Purpose VAT Communication files and populates only the sections of multi-purpose communication that are required for reporting transactions for black list countries.
When you run the ITY Elect. Communications -TXT Generator program, the system populates the Electronic Italy Yearly List - WF - Summary (T74Y0047) and Electronic Italy Yearly List - WF - Detail files (T74Y0049). The system uses the data in these worktables to generate the IYL Electronic Communications - Summary and Detail (R74Y0049) audit report. You can use this reports to review your data before you generate the files that you need to submit for tax reporting. The process also prints a report (R74Y0049T), which includes the names of the members added to the TXT (File F74Y0050).
After you review the audit reports, you can set a processing option and run the ITY Elect. Communications -TXT Generator program again to generate records for a text file (F74Y0050). The text file is the Multi-Purpose VAT Communication that you must submit to the tax authorities. You then use your usual process to work with the text files and copy the files to the media that you use to submit the electronic files.
The electronic file is composed of the following record types:
| Record Type | Comments |
|---|---|
| A: Header Record | This record type is mandatory and includes:
|
| B: First party and transmission information record | This record type is mandatory and includes:
|
| C: Records containing transactions data transmitted in summary transmission mode | The system populates the Electronic Italy Yearly List - WF - Summary (T74Y0047) and then sections and fields in record type C when you set the Detailed or Summarized processing option to generate summary records. The system populates different sections in record type C depending on whether you specify to generate the Yearly List (Spesometro) or Black List Declaration. See Section 35.1.1, "Sections in Record Type C"
Record type C and record type D are mutually exclusive. If you specify summary as the mode, then the system populates the sections in record type C and does not populate the sections in record type D. If you specify detailed as the transmission mode, then the system populates the sections in record type D and does not populate the sections in record type C. If you set the Type of Upload processing option to generate a cancellation, the IYL Elec. Communications - TXT Generator program does not populate record type C. |
| D: Records containing transactions data transmitted in detailed transmission mode | The system populates the Electronic Italy Yearly List - WF - Detail (T74Y0049) and then sections and fields in record type D when you set the Detailed or Summarized processing option to generate detail records. The system populates different sections in record type D depending on whether you specify to generate the San Marino Purchases Declaration or the Yearly List (Spesometro). See Section 35.1.2, "Sections in Record Type D"
Record type C and record type D are mutually exclusive. If you specify detailed as the mode, then the system populates the sections in record type D and does not populate the sections in record type C. If you specify summary as the transmission mode, then the system populates the sections in record type C and does not populate the sections in record type D If you set the Type of Upload processing option to generate a cancellation, the IYL Elec. Communications - TXT Generator program does not populate record type D. |
| E: Counters record | In addition to header information such as the responsible company's tax ID, this record includes counters for the records in each of the sections in record types C and D. This record is mandatory. |
| Z: Footer record | This record includes the number of records in record type B, C, D, and E. This record is mandatory. |
Record type C includes sections for specific types of transactions in summary mode. The system populates these sections only when the section needs to be populated based on the declaration type and whether you specify to generate the data in summary or detail mode.
Record type C includes these sections:
Section FA: Summary of Transactions Documented by an Invoice.
The system uses the values in the Special Handling Code field of UDC 74Y/DT to determine whether to include transactions in this section. Section FA includes:
Third Party VAT Number
Rental / Leasing
You use the Additional Info Tag File Maintenance program (P74Y0043) to indicate that a transaction involves a rental or lease.
Positive and negative transactions
The system includes accounts receivable records (batch type is I) as positive transactions and accounts payable records (batch type is V or W) as negative transactions.
Taxable / Non Taxable/ Exempt Amounts
The system uses the values in the Special Handling Code field of 74Y/DT to determine whether to include transactions in these fields.
VAT amount
Amount of transactions with VAT not exposed on the invoice.
Transactions that you need to include in this field must be assigned a tax rate/area that is set up in UDC 74Y/IV and has a value of 4 in the Special Handling Code field for the code.
Amount of adjustment notes.
The program uses the document type to determine which transactions are adjustment notes. Document types set up in the 74Y/DT UDC table that have the value 3 in the Special Handling Code field of UDC 74Y/DT are adjustments.
VAT Amount of adjustment notes.
Section SA: Summary of Transactions Not Documented by an Invoice
Transaction that are not documented by an invoice must have a tax rate/area that is set up in the 74Y/IV UDC table, and have a value of 4 in the Special Handling Code field of the 74Y/IV UDC table. Section SA includes a summary by taxpayer ID of the number of transactions, the total amount, and whether the transaction involved a rental or lease. You use the Additional Info Tag File Maintenance program (P74Y0043) to indicate that a transaction involves a rental or lease.
Section BL: Transaction with subject based in tax haven countries (countries included in the black list), as well as a summary of transactions with non-resident subjects, and a summary of purchase of services from non-resident subjects.
Section BL includes these subsections:
BL001
This section includes information about the taxpayer, including name, date of birth, and country code if the taxpayer is an individual; or, the information about the company, such as the taxpayer ID, the country where the company is located, and the legal address of the company.
BL002
This section includes the VAT registration number, and indicates whether the declaration is to report transactions involving black list countries, transactions with non-resident subjects, or purchases of services from non-resident subjects. To include transactions as those involving black list countries, you must use the Additional Info Tag File Maintenance program (P74Y0043) to indicate that the transaction involves a black list country.
BL003: Taxable, Non-Taxable, and Exempt Amounts
This section is completed for only accounts receivable (positive) transactions when the report includes transactions with black list countries (field BL002002 is completed) or transactions with non- resident subjects (field BL002003 is completed). Section BL003 includes the total amount and the taxable amount of the transactions.
BL004: Transactions Non Subject to VAT
This section is completed for only accounts receivable (positive) transactions when the report includes transactions with black list countries (field BL002002 is completed). The section includes the total amount for the sale of goods, and the total amount for the sale of services.
BL005: Adjustment Notes
This section is completed for only accounts receivable (positive) transactions when the report includes transactions with black list countries (field BL002002 is completed). The section includes the total amount and tax amount of adjustment notes.
BL006: Taxable, Non-Taxable, and Exempt Amounts
This section is completed for only accounts payable (negative) transactions when the report includes transactions with black list countries (field BL002002 is completed) or transactions with non- resident subjects (field BL002003 is completed). Section BL006 includes the total amount and the taxable amount of the transactions.
BL007: Transactions Non Subject to VAT
This section is completed for only accounts payable (negative) transactions when the report includes transactions with black list countries (field BL002002 is completed). This section includes the total amount of the transactions.
BL008: Adjustment Notes
This section is completed for only accounts payable (negative) transactions when the report includes transactions with black list countries (field BL002002 is completed). The section includes the total amount and tax amount of adjustment notes.
Control Digits
This section includes control digits for the file.
Record type D includes sections for specific types of transactions in detail mode. The system populates these sections only when you set the processing options to generate records in detail mode. Record type D includes these sections:
Section FE: Issued Invoices and Recap Invoices (Receivables)
This section includes information such as the taxpayer ID, document dates, taxable and tax amounts, and whether the invoice involves a lease or rental. You use the Additional Info Tag File Maintenance program (P74Y0043) to indicate that the transaction involves a lease or rental. You specify the recap document type for accounts receivable transactions in a processing option.
Section FR: Received Invoices and Recap Invoices (Payables)
This section includes information such as the taxpayer ID, document dates, taxable and tax amounts, and whether the invoice involves a lease or rental. You use the Additional Info Tag File Maintenance program (P74Y0043) to indicate that the transaction involves a lease or rental. You specify the recap document type for accounts payable transactions in a processing option.
Section NE: Issued Adjusting Notes
This section includes information such as the taxpayer ID and information about the adjustment, such as the amount and date of the adjustment.
Section NR: Received Adjustment Notes
This section includes information such as the taxpayer ID and information about the adjustment, such as the amount and date of the adjustment.
Section DF: Transactions Not Documented by an Invoice
This section includes information such as the taxpayer ID, the transaction date and document amount, and whether the transaction involves a lease or rental.
Section FN: Transactions with Non-Resident Subjects (Receivables)
This section includes information about the taxpayer, including name, date of birth, and country code if the taxpayer is an individual; or, the information about the company, such as the taxpayer ID, the country where the company is located, and the legal address of the company. It also includes details of the transactions, such as the taxable and tax amounts, invoice date, and whether the transaction involves a lease or rental.
To include transactions as those involving non-resident subjects, you must use the Additional Info Tag File Maintenance program (P74Y0043) to indicate that the transaction involves a non-resident subject.
SECTION SE - Purchases of Services from Non-Resident Subjects and Purchases from Subjects Resident in San Marino
This section includes information about the taxpayer, including name, date of birth, and country code if the taxpayer is an individual; or, the information about the company, such as the taxpayer ID, the country where the company is located, and the legal address of the company. It also includes details of the transactions, such as the taxable and tax amounts, invoice date, and whether the transaction involves a lease or rental.
The system uses the country code associated with the supplier address book records to determine if the supplier is a resident of San Marino.
Section TU - Tourism Related Transactions
The JD Edwards World system does not support the completion of section TU in record type D.
Control Digits
This section includes control digits for the file.
The periods for which you generate the declaration are:
Black List Declaration: Monthly or quarterly in summary mode.
San Marino Purchases Declaration: Monthly in detail mode.
Yearly List (Spesometro): Yearly
Complete these steps to generate these declarations:
Yearly List (Spesometro)
Black List Declaration
San Marino Purchases Declaration
Complete the required setup.
See Chapter 36, "Set Up Your System for the Multi-Purpose VAT Communication"
Enter and post vouchers and invoices.
Classify transactions for declarations.
Set the processing options and the additional parameters for the IYL Elec. Communications - TXT Generator program (P740047).
Specify whether to generate the Yearly List, the Black List Declaration, or the San Marino Purchases Declaration.
See Section 45.1, "Processing Options for IYL Elec. Communications - TXT Generator (Workfile Generation) (P74Y0047)"and Section 37.2.3, "Additional Parameters".
Run the IYL Elec. Communications - TXT Generator program to generate the audit reports.
When you are satisfied with the report output, run the IYL Elec. Communications - TXT Generator program to generate the text files.
Process the text files and submit to the tax authorities.