1. Localizations for Italy Implementation Guide
  2. Determining the VAT Ceiling

Determining the VAT Ceiling

You can run the Calculate VAT Ceiling report at the beginning of each year to determine if you are eligible for the VAT ceiling, based on the previous year's sales, and to record the VAT ceiling limit for the coming year.

To determine the eligibility, the system uses the information in the F03B11 table to perform these calculations:

  • The gross amount for all of the invoices between the dates that you specified in the processing options.

  • The gross amount for all of the foreign invoices between the dates that you specified in the processing options.

  • The percentage of all of the foreign invoices.

The system produces a report that indicates whether you are eligible for the VAT ceiling, based on the percentage of foreign invoices.

If you are eligible for the VAT ceiling, the system calculates the initial VAT ceiling limit. The initial VAT ceiling limit is the total amount of vouchers that will be exempt from VAT.

The system stores the initial VAT ceiling limit in the VAT Ceiling Limit - Italy (F74413) table.