Italy: can offset tax cover the requirement for self-invoice?
SummaryItaly: can offset tax cover the requirement for self-invoice?
For some AP invoices (domestic invoices for certain industries, services extra EU ...), there is a requirement to create a self invoice to be booked in AP and AR, in order to reflect the input and output VAT, both in accounts and in VAT registers.
We have suggested to our customer to use the standard Reverse Charge / Offset functionality to cover this requirement, i.e. book the external supplier invoice in AP with a tax code linked to an offset tax code. By assigning this invoice to a document category linked to a sequence linked to the Purchase VAT Register and to the Self Invoice VAT Register, we manage to get the invoice in both VAT Registers.