1. Localizations for Italy Implementation Guide
  2. Understanding the Annual VAT Reporting Process

Understanding the Annual VAT Reporting Process

Businesses in Italy are required to complete annual VAT reports. The report can be submitted to the tax authorities on paper or electronically, but it must conform to the legally required format.

Annual VAT reports include summarized VAT information from customer invoice and supplier voucher records. The information must be summarized by the supplier or customer tax identification number. The system creates a cumulative record for customers or suppliers who have the same tax identification number, as in the case of a parent businesses with subsidiaries.

The system stores summarized VAT information by supplier and customer in the Year-End VAT Revisions - Italy (F00900) table. The F00900 table is based on the F0018 table, which includes all of the detailed VAT information for invoices and vouchers.

You can distinguish supplier vouchers and customer invoices in the F0018 table by the batch type. You distinguish supplier vouchers and customer invoices in the F00900 table by information type.

The system uses VAT codes (00/IV) to determine whether amounts are considered taxable, nontaxable, or excluded. Records that include VAT codes that are not defined on the table are considered non-VAT. The system does not include these records in the F00900 table.

The F00900 table includes this information for each customer and supplier:

  • Total number of invoices or vouchers.

  • Total taxable amount.

  • Total tax amount.

  • Total nontaxable amount.

  • Total nontaxable 8 comma 2 (suppliers only).

You can update the summarized VAT information in the table by using a batch program or by manually entering each record. You can also revise summarized VAT information.

Run the Annual VAT File Build (R00911) program to create the records in the F00900 table. The system summarizes the information in the F0018 table by invoice or voucher, based on the current year that you define in the processing options. You can run this program once a year or as many times as you need to update the records in the F00900 table.