A new Value Added Tax (“VAT”), special regime has been introduced. This new VAT cash regime would be applicable to tax payers whose turnover during the previous calendar year did not exceed 2,000,000 euros.
According to this new tax scheme the tax shall be payable at the time of the total or partial payment of the price on the amounts actually received or if this has not occurred, the chargeable event will occur on December 31 of the year immediately following the day on which the operation was carried out.
The invoice must be issued and delivered at the time when the transaction takes place, but the tax is to be paid to the Tax Office only when it is collected from the customer.
On the other hand, where the tax payer is entitled to apply this scheme, the recipient of the invoice could only deduct the input VAT charged at the time of the full or partial payment of the price, on the amounts actually paid, or if this has not occurred, the 31 of December of the year immediately following the day on which the operation was carried out.
Therefore, as from January 1st, 2014 it would be very important to be aware if the supplier enjoys the new VAT special regime, so as not to anticipate the deduction of input VAT on unpaid invoices. In this respect, the invoice must contain a mention about his VAT status.