news Mago1.4.1

Recent Mago4 updates deal with the new law adjustment about Split Payment.

Edited by Marketing Department

Some updates promptly adopted by Mago4 include the Split Payment mechanism, which from 1 July 2017 is expanding its sphere of application both to the subjects purchasing goods and services as well as to the sellers and providers of goods and services.

First of all, we want to summarize some basic concepts. In Italy, the Split Payment is a mechanism introduced in 2015 requiring that public purchasers of goods and services - even if they do not qualify as taxable persons - pay directly to the tax authorities the VAT charged by the suppliers. In practice, VAT on a document issued to a public body is not collected by the party who issues the invoice, and consequently he is not paying the VAT.

As of July 2017, something has changed over this discipline. According to the new Italian rules, the recipients of the measure are now distributed in three large groups: institutions and companies belonging to the Public Administration, the companies controlled by the Council Presidency, the Ministries and the local authorities and listed companies. Another news is that also the provision of services subject to withholding tax are required to adopt Split Payment: among them, the most frequent case is that of self-employed and professionals, thus becoming new parties obliged to Split Payment.

Mago4 1.4.1 accepts these changes: the user can freely decide, depending on the type of customer, when to activate the Split Payment procedure, which can be enabled in Mago as of 1/7/2017 even in the case of withholding tax made by a professional, and not only if the customer is the Public Administration.

To manage the Split Payment in Mago4 you only need to identify which customers are covered by a specific option in the registry. After that, according to automatism in the program, the documents issued to these customers will exclude the amount of VAT both in total to be paid, and in the entry. In accounting, a special VAT transfer fee will be generated and the VAT of such documents will never be counted as due in Liquidation. You can also set a specific wording on printing documents, to be identified as affected by the Split Payment.

This update is one of the improvements contained in the SP 1.4.1 Mago4, which was recently released and immediately followed by the 1.5 release, that you can read on this blog.

As always, you can find out all the updates by reading the release notes in the Microarea portal's Reserved area section, My Mago4 section. Additionally, if you have subscribed and maintained the Mago4 Live Update Service (M.L.U.), downloading updates is free. However, we recommend that you do so by requesting the intervention of your reseller. If your M.L.U. expired, or you want to know more, please ask our international Sales department for information, and find out how to be up to date.