With answer No. 243/2022, the Italian Revenue Agency confirms the applicability of the invoice discount for expenses incurred for the affixing of the compliance visa, contributing to the maximum expenditure limit allowed for deduction by the taxpayer for each eligible intervention.
The question: invoice discount and VAT treatment of financial charges
With the application of the invoice discount/credit transfer in the case of works benefiting from tax deductions, in some cases the affixing of the certificate of conformity by an authorized professional is mandatory.
The applicant asks:
- Whether in such cases the client may request the application of the invoice discount with reference to the fee for the certificate.
- Whether a financial charge equal to the discounting of the credit by the purchaser is subject to VAT.
Response of the Italian Revenue Agency
Article 121 of Decree-Law No. 34 of May 19, 2020 (so-called “Relaunch Decree”), converted with amendments by Law No. 77 of July 17, 2020, establishes that individuals who incur expenses for extraordinary maintenance work—both Superbonus and others—may, as an alternative to direct use of the applicable deduction, request an invoice discount advanced by the suppliers who carried out the interventions, or the transfer of credit to banks or financial intermediaries.
Regarding the Superbonus and other deductions, the taxpayer may request the certificate of conformity for the data relating to the documentation that certifies the conditions entitling to the tax deduction for the interventions referred to in Article 121.
As clarified by Circular No. 30/E of 2020, expenses incurred for the issuance of the certificate of conformity (as well as attestations and certifications) contribute to the maximum expenditure limit allowed for deduction, provided for each eligible intervention.
Invoice discount for certificate of conformity confirmed
That said, it is confirmed that the expense for the affixing of the certificate of conformity — contributing to the maximum expenditure limit allowed for deduction by the taxpayer for each eligible intervention— may be subject to an “invoice discount,” which takes place through the transfer of a credit corresponding to the deduction due to the client, which can be used for offsetting or further transferred.
Discounting of the received credit contributes to the taxable base
With reference to the second question:
It is considered that the compensation agreed with the client for the “discounting of the received credit” also falls within the fees related to the professional service.
For VAT purposes, such compensation will also contribute to the taxable base and, as such, will be subject to VAT at the standard rate.
