Member Login:

ORDINARY VAT RATE INCREASING FROM 20% TO 21%

Under the change made to article 16, 1st paragraph of the Republic Presidential Decree no. 633/72, the ordinary VAT rate will increase from 20% to 21%, while the extraordinary rates (applicable just to certain goods and services, f.i. food or accommodation) - 4% and 10% will remain unchanged.

EFFECTIVE DATE

The correct VAT rate to be applied must be identified according to the moment when the operation/sale can be considered as "preformed" under the VAT general law, different for goods and services. In general:

Movable goods' sales are performed when shipped or delivered; Unmovable goods' (as real estate properties or buildings) sales are performed when the Notary deed is signed; Movable and unmovable goods' sales with constituent effects delayed in respect of shipping, delivering or signature, are performed at the date of effectiveness; Services' sales are performed when the price is paid, despite of their partial or total execution. Therefore:

Sales performed before the Law Decree effective date will remain subject to the old 20% rate; Sales performed starting from the effective date (publication of the new Law in the Official Gazette) will be subject to the new 21% rate. DEFERRED INVOICING FOR GOODS' SALE

In case of invoicing deferred to the 15th day of the month following goods' shipment or delivery, allowed for goods accompanied by the transportation document, the taxable event will be, in any case, the shipment or the delivery.

Therefore:

The old 20% VAT rate will be applicable in case of shipments or deliveries preceding the effective date; The new 21% VAT rate will become applicable in case of shipments or deliveries made starting from the effective date. TAXABLE EVENT'S ANTICIPATION

A waiver to the general discipline is made to sales of goods and services every time the invoice is issued or the price is partially or totally paid before those events which determine the taxable moment, or independently from them the operation is considered as performed at the invoice's or payment's date.

As a consequence:

Payments on account made or received before the new Law effective date are subject to a 20% VAT rate, while the final/remaining payment, made starting from the effective date, will be subject to 21% VAT rate; The old 20% rate will be applied to invoices issued before goods' shipment or delivery if those documents are issued before the effective date. CREDIT AND DEBT MEMOS

Credit and debt memos issued after the ordinary VAT rate's increasing must be subject to the old 20% rate if the original invoice, that to be amended with the memo, has been issued before the new law enforcement.

RETAILERS

Retailers and all other operators that are not obliged to issue invoices, have to put in place a new column in their sales' VAT registers to separate sales subject to 20% from those ones subject to 21% VAT rate.

PRO-FORMA/NOTICE INVOICES ISSUED BY PROFESSIONALS

Pro-forma/Notice invoices issued by self-employers and professional before the enforcement date, have to amend those invoices with the new 21% VAT rate if their payment will be received after the new rule's enforcement date.

SALES TO PUBLIC AUTHORITIES

Sales of goods and services to the Italian State/Government and all other Public Authorities, listed in article 6, paragraph 5 of the Republic Presidential Decree no. 633/72 (such as Regions, Provinces, Municipalities, Universities, Chamber of Commerce, etc.) are subject to VAT payment at their payment's date.

Considering that, for these particular sales, invoice has to be issued in any case at operation's performance (good's delivery), VAT applicable rate will remain 20% if the invoice has been issued and posted/registered in the seller's VAT registers before the new Law enforcement date.

The invoice will be subject to 21% VAT rate if it will be issued on or after the above mentioned date. The rule, therefore, introduces a limitation for 20% rate application: the invoice must be posted/registered in seller's VAT registers, being not sufficient its issuing before the enforcement date.

It's amazing to think that China only opened its doors to the world economy in 1979. At the time, it was an experimental approach with four Special Economic Zones being established. Their success encouraged the government to further open up the country, which led to China becoming a full member of the World Trade Organisation in November 2001. 

HLB Fast & ABS Auditores, HLB International's member firm in Colombia, has acquired accounting firm Jiménez y Asociados with offices in Bogota and Medellin. Through the recent merger HLB Fast & ABS has gained a significant place in the Colombian market with increased nationwide coverage.

HLB Consultants Italia, HLB International's member firm federation for consultancy and tax advisory in Italy, is delighted to announce the appointment of Studio CD Tax and Law firm in the Abruzzo region of Italy.

HLB International, the international accountancy network, has signed its fifth member firm to its UK federation. Joining the network is Evolution Business and Tax Advisors LLP (Evolution) based in Teesside, North East England.

Following productive meetings, HLB International is delighted to announce its membership with the China-Britain Business Council as of May 2011. HLB member firms in both the UK and China have engaged in discussions with CBBC's local teams, to discuss their collaboration. Mr. Andrew Denley, managing partner of HLB UK member firm Menzies LLP, became the first HLB member to meet with the CBBC local team in London. 

The UK Bribery Act was passed in April 2010 by the previous Government to become law on 1 July 2011.The publication in April 2010 provoked a strong reaction to the new law, leading to much political lobbying, media pressure and public interest. The focus for this has been the prospect of formal Government guidance about the way the Act will work.

HLB International, the international accountancy network, has appointed a new member firm in Romania. Established in 1996 and with its head-quarters in Bucharest, Contexpert Consulting is one of the leading accounting firms in Romania providing accounting, audit, tax and payroll services. In 2010 Contexpert Consulting was ranked 5th amongst accounting firms in Bucharest.

Menzies, one of the UK's largest regional firms of accountants and advisers to privately owned businesses, is co-hosting an international seminar with HSBC on Thursday 16 June 2011 at HSBC in Canary Wharf. The event will give business owners the opportunity to hear strategies for growth in the Chinese market and how to succeed in the world's second largest economy.

James Frost, Chief Operating Officer of HLB International, and Coco Liu, Head of China Development, had an initial meeting with Ms Yuefang Zhu, the Chief Representative and the Assistant Representative Mr. Ning Tang, of the UK office of China Council.