Issuing company invoices in Italy by splitting payment settlement in Mews Operations

Properties in Italy can split payment settlements in Mews Operations when issuing company invoices for public administration companies, to automatically deduct tax from those invoices. This means Italian public administration companies can pay their sales tax directly to the authorities in compliance with country’s tax regulations.  

In this article, you can learn about how to issue company invoices in Italy:

• Step 1: Configuring an Italian company profile to deduct tax payments from invoices
• Step 2: Issuing an invoice using the split payment settlement in Italy 
• Step3: (Optional) Setting the accounting category to account for split tax payment deductions

Step 1: Configuring an Italian company profile to deduct tax payments from invoices

For companies for which you want to issue invoices with tax deducted from payments, you need to add the following respective information to their profile as below: 

1. In the global search bar, enter the company name then click the company to open their profile.  
2. In the Details tab of the company profile, in the Legal identifiers section, you need to add the Codice destinatario and the Fiscal code of the company. Optionally, you can add their Tender Code and the unique project code. This makes issuing invoices more efficient because you do not need to enter the codes in each invoice. 
    
   • Cod. destinatario: Codice destinatario. Enter the 6-character office code, the “Codice Ufficio” of the public administration company. 
   • Fiscal code: Enter the 11-digit fiscal code of the public administration company.  
   • Tender Code (CIG): Enter the “Codice Identificativo Gara” in the format of 10 alphanumeric characters. 
   • Project Code (CUP): Enter the unique “Codice Unico di Progetto” in the format of 15 alphanumeric characters.
3. Click Save. This ensures Mews automatically adds this information when issuing an invoice for this company. 
4. Click the Additional info tab. 
5. In the Payment section, under Options, check the Add tax deducted payment to invoices box.
   
6. Click Save.

Step 2: Issuing a company invoice using the split payment settlement in Italy

Once you successfully set up the accounting configuration and the company profile, you can issue the company invoice as follows: 

1. In the company profile, click the Billing tab. 
2. To issue an invoice, click Invoice > Issue invoice. 
3. In the Review before invoicing screen, in the Payments section, you can view the tax deducted payment as Tax deducted payment (IVA non riscossa). The tax deduction allows the guest to only pay the net price.

4. If you did not complete the legal identifiers on the company profile, you need to add them from this screen, before issuing the invoice.

5. Click Issue invoice to issue the invoice using the split payments settlement.

   Note: 

   • Mews displays the full VAT in the tax summary for your invoice. 

   • The printed version of the invoice contains the Tender Code, the unique project code, if available, and a split payment declaration that includes a reference to the article 17 of the Italian VAT directive DPR 633/1972. 

    You can review the tax deducted payments in the Payment section of the Accounting report. 
   
   

Step 3: (Optional) Setting the accounting category to account for split tax payment deductions

1. When using the split payments settlement feature, you can create an accounting category that you want to use for tax deductions: 
   1. In Mews Operations, go to the main menu  > Settings > Property > Finance. 
   2. Click Accounting categories. 
   3. Click + Accounting category. 
       

      • Name: Enter the name of the accounting category, for example, “Split payment settlement”. Mews adds this name to the bill when you split payment settlements. 

      • Code: You can enter a code for internal tracking in Mews Operations.

   4. Click Create.
2. To select the accounting category for your tax deducted payments: 

   1. In Mews Operations, go to the main menu  > Settings > Property > Finance. 

   2. Click Accounting configuration.

      • Tax deducted payment: Click to select the relevant accounting category. 
        

   3. Click Save.

You can now view the split payment settlement entries in the accounting report: 

You can learn more about the Accounting report here.