Split payment is a particular VAT settlement mechanism which came into force in 2017 and which is mandatory when private companies have commercial relations with Public Administrations (PA).
What is split payment and how it works
The split payment, also known as the split of payments, provides that the private supplier collects the invoice net of VAT to the debt, which will be paid directly by the Public Administration body to the Treasury.
The 2015 Stability Law commissioned by the Gentiloni government introduced the payment split system, in which for the sales of goods and services made to the Public Administration, VAT must no longer be paid to the supplier, but must be paid to the Treasury directly from the Public Body.
The tax document (invoice) that is issued will report a dedicated item:
How a Hotel must operate to issue an invoice in split payments to the Public Administration
Even accommodation facilities such as hotels and inns are among the subjects obliged to apply the VAT split payment (provided for by article 17-ter of Presidential Decree 633/1972 as amended by Legislative Decree 50/2017 and Legislative Decree 148/2017).
To fill in and issue an invoice in SP, a hotel must first issue an electronic invoice which must necessarily include the wording split payment.
Below is a facsimile of an invoice issued in “split payment” mode which highlights the non-computed VAT component.
Subsequently, the hotelier will be responsible for sending the electronic invoice to the SDI which will carry out the relevant checks, the electronic invoice must therefore be sent to the interchange system as a normal electronic invoice.
It should be noted that invoices issued in paper form cannot be considered valid against the Public Administration.
The register of VAT payments will contain a dedicated section summarizing the amounts of VAT not collected because they belong to tax documents issued in the split of payments.
Manage split payment with Slope
Slope is able to respond to the need to issue an electronic invoice to the PA and apply split payment.
The functionality is very simple, it is perfectly integrated into the system and does not differ much from the issue of a very normal electronic invoice.
Once you have selected the reservation for which you want to proceed with the invoice issue, you will select the company registry, the items to be included in the tax document and finally you will mark the checkbox “Apply splitting of VAT payments (Split payment) “.
In this way, the Slope management will apply the split of payments, providing the summary that the customer must pay with the non-calculated VAT component and the total of the tax document.