How to treat the Invoices received over the end of the year
| Insights
Last year, article 14 of Law 119/2018 has modified the input VAT deduction on purchases. For this reason, it’s useful to remember how to treat the Invoices received over the end of the year.
Since the date of receipt of the invoice by the client is crucial, it is useful to briefly analyze the following cases:
| Invoices received and registered in 2019 | VAT can be deducted with the VAT settlement on December / fourth quarter 2019 |
| Invoices received in January 2020 (dated December 2019) and registered in January 2020 | VAT can be deducted with the VAT settlement on January/ first quarter 2020 |
| Invoices received in December 2019 not registered in December 2019 ( registration 2020 within 04/30/2019) | VAT can be deducted on the VAT return of FY (2020 VAT return), contributing to the 2019 VAT balance. In this case, the invoice must be booked by 04/30/2020 in a special section of the VAT register on purchases of 2019. |
| N.B. For the e-invoice, the receipt date is the same as the date of one fixed by the SDI (The Exchange System) | |