Vat Producers, here is the Inland Revenue software to calculate how much to pay
The agreement with the tax authorities is on. First test for 2.7 million self-employed and businesses with tax report cards, in July it will be the turn of flat-rate taxpayers
by Marco Mobili and Giovanni Parente
3' min read
Key points
3' min read
The calculation of the two-year tax credit for VAT numbers has begun. After months of waiting, the Inland Revenue Agency published on its site on the evening of Saturday 15 June the calculation programme for the 2.7 million VAT numbers filling out tax returns (the so-called Isa). For the self-employed, sole proprietorships and professionals in flat tax (the flat-rate regime) the waiting time will be longer than a month: the programme will be released by 15 July.
Account reduced to half the first year
.Among the most important novelties is the gradualness of the IRS proposal. The improvement in taxable income asked of taxpayers will be gradual. In practice, the calculation software (the evolved version of the 'Il Tuo Isa' programme used for tax reports) will ask for an adjustment in two steps with a 50% discount in the year of debut. As anticipated by 'Il Sole 24 Ore' of 15 June, in a nutshell, if the increase in income needed to obtain the '10' in the tax report card will be, for example, 10 thousand euro, an increase of 5 thousand euro will suffice to settle with the tax authorities on this year's income.
Data to be indicated
.Once you have downloaded the software, and checked the parts already pre-filled by the IRS with the master data and the time series of revenues and costs, it is a matter of entering the entire set of data needed to calculate income such as number of employees, percentage of use of owned or supplier-purchased materials, and production costs.
From GDP to the last three years: the variables at play
There are several variables that will come into play to actualise the final result to which the taxpayer will be asked to adhere. In fact, in working out the taxable amounts required to sign the two-year preventive agreement with the tax authorities, the calculation will also take into account the growth forecast by official public finance documents. As explained in the ministerial decree on the methodological note signed by the Deputy Minister of the Economy Maurizio Leo (published together with the annex in the 'Official Gazette' on 15 June), the macroeconomic GDP growth projections drawn up by the Bank of Italy are used for the 'prospective revaluations of the proposal for an arrangement'.
Alongside the macro conditions of the economic environment, the software will also take into account the economic dynamics experienced by VAT over the last three years, thus making more modest demands on companies with declining turnovers.
