Split Payment towards abolition, the next deadline of 30 June 2023 brings with it some unknown factors, in particular for the PAs which could encounter some financial problems related to investment expenses in the commercial sector; in fact, these expenses could be quite significant if linked to Pnrr investments. But what is the Split Payment? It is a regime intended for suppliers of the Public Administration born to establish the liquidation and payment of VAT and introduced by the 2015 stability law (Law 190/2014) in order to combat tax evasion tax and at the same time reduce VAT evasion.
In its classic functioning, VAT is generally charged to the customer on the invoice and subsequently paid by the supplier to the tax authorities; with the Split Payment, on the contrary, the Public Administration will instead do it directly.
One of the consequences linked to the June 30 deadline lies in the fact that all companies working for the Public Administration will no longer be able to offset the VAT collected on sales invoices with that paid on purchase invoices, as happened before, this will result in a request of reimbursement to the tax authorities, increasing the timing of the procedure.
The changes introduced will involve significant adjustments, to be made as soon as possible, which will concern all IT procedures, as well as a new method of issuing and accounting for invoices.
We will therefore find ourselves in the position of having to create two different accounting management systems, with new costs for updating the software and additional time for training operators.
Finally, not to be underestimated, problems could also arise from a financial point of view, since by no longer collecting VAT from the customer, companies that work mainly with the Public Administration will lose financial resources.
All of this, in relation to the Pnrr, the expected investment flows and the need to meet certain deadlines, could contribute to creating various problems and in turn generate errors that would lead to even quite substantial penalties.
The possibility that Split Payment will be abandoned is increasingly looming on the horizon; obviously an official solution has not yet been disseminated but the fact that it is being talked about with increasing insistence and at various levels suggests that there could be important innovations.
It is of fundamental importance, in moments like these, to rely on professionals in the field of financial consultancy and valid technological partners for adaptation to the new incoming regulations.