{"id":24215,"date":"2020-02-03T09:05:00","date_gmt":"2020-02-03T08:05:00","guid":{"rendered":"https:\/\/www.delucapartners.it\/news\/procurement-the-first-clarifications-from-the-italian-tax-authority\/"},"modified":"2026-02-16T16:14:33","modified_gmt":"2026-02-16T15:14:33","slug":"procurement-the-first-clarifications-from-the-italian-tax-authority","status":"publish","type":"post","link":"https:\/\/www.delucapartners.it\/en\/insights\/procurement-the-first-clarifications-from-the-italian-tax-authority\/","title":{"rendered":"Procurement: the first clarifications from the Italian Tax Authority"},"content":{"rendered":"\n

On 13 January 2020, on the occasion of the Forum of accountants and accounting experts held in Milan, the Italian Tax Authority responded to some doubts closely related to the concrete application of the Tax Decree. <\/p>\n\n\n\n

First\nof all, it has been affirmed that\nemployment agencies<\/strong> as governed by Chapter I of Title II of Legislative\nDecree 276\/2003 are also covered<\/strong> by\nthe new rules.<\/p>\n\n\n\n

It was also noted that the amount of 200,000 Euros is to be understood in reference to the annual amount entrusted to an individual business. If one and the same client has entrusted several works, the totality of the works and services entrusted by it must be added together. If, on an annual basis, the result leads to the threshold under examination being exceeded, a copy of the payment proxies relating to the payment of withholding tax on the salaries of directly employed employees<\/strong> must be requested from the contractors\/subcontractors\/trusted agents.<\/strong> <\/p>\n\n\n\n

In\nessence, the coordinating rule described applies\nindiscriminately to all works entrusted by the same client. <\/strong><\/p>\n\n\n\n

Paragraph\n5 of art. 4 of the Tax Decree provides for a system of exemption from reporting\nobligations under certain conditions. These conditions, in the opinion of the\nItalian Tax Authority, must be met\njointly. <\/strong><\/p>\n\n\n\n

In\norder to verify the fulfilment of the payments made in the tax period to which\nthe tax returns submitted in the last three years refer, account must be taken\nof payments made for amounts in excess of 10% of the amount of income or\nremuneration as resulting from the returns. <\/p>\n\n\n\n

The\nItalian Tax Authority also observed that the payments to be taken into account\nin the tax account, when a company finds itself in a condition of tax loss for\nwhich (according to the law) it is not required to pay tax, do not only concern\nincome tax but also VAT. <\/p>\n\n\n\n

Finally, the Italian Tax Authority claims that in order to allow the client to verify that the withholding tax has been paid by the contractor\/subcontractor\/trusted agent, copies<\/strong> of the payment proxies<\/strong> relating to the payment of withholding tax relating to<\/strong> an individual worker may be cumulative<\/strong>. In order to carry out the checks imposed, in fact, it is sufficient to verify the existence of a correlation between the payment proxies, which may therefore concern all the workers employed by the same client, and the list of the names of all the workers sent to it by the contractor or subcontractor.<\/p>\n\n\n\n

The\nabove is subsequent to Resolution 108\/2019 with which the Italian Tax Authority\nagain has clarified that:<\/p>\n\n\n\n