Italy: Changes in VAT management by D.L. 119 of 23 Oct 2018: Quarterly VAT communication "Lipe" on Dynamics 365 for Finance and Operations

According to the Legislative Decree no. 127/2015, art. 1 and Decree Law 78/2010, art. 21, the Periodic VAT payment Communication (COMUNICAZIONE IVA PERIODICA CON PROSPETTO DI LIQUIDAZIONE) information must be transmitted electronically in XML format (Quarterly VAT communication "Lipe").

Implementation of Quarterly VAT communication in Microsoft Dynamics 365 for Finance and Operations is described in KB #4020688.

On 21^st of March 2018, Italian Inland Revenue published information that starting from the first quarter of 2018 the “Lipe 2018” communication must be submitted and this format replaces the communication model of the quarterly VAT returns approved with the provision of March 27, 2017.

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This article describes changes in the Quarterly VAT communication “Lipe” on Finance in Operations introduced for the purpose to accommodate changes in VAT management in case if a company applies VAT management and reporting by tax point date (“Date of VAT register”).

For companies that do not apply  VAT management and reporting by tax point date (“Date of VAT register”) the Quarterly VAT communication “Lipe” report is not changed and data for the report will be collected by tax transactions posting date. These companies may keep using the previous version of the format and model mapping.

When a company decides to use “Date of VAT register” feature to enable VAT management by tax point date which differs from the date of transaction posting, the following or higher version of Electronic reporting configuration must be imported from the Shared asset library of the LCS portal and used:

• Quarterly VAT Communication model mapping.version.6.10

The new version of the “Quarterly VAT Communication model mapping” provides additional check if “Date of VAT register” parameter on General ledger parameters page is switched on, amounts in the report will be calculated by tax transactions basing on “Date of VAT register” field instead of the tax transaction posting date. It is supposed that Date of VAT register field is filled in for all the tax transactions in the related period. Check whether there are tax transactions with empty Date of VAT register and correct them if needed using VAT register transactions periodic task.

Learn more about Download Electronic reporting configurations from Lifecycle Services.