VAT books

Italian law requires companies to prepare and submit a VAT book and a VAT liquidation report.

The VAT book is a legal report of all value added tax (VAT) transactions of a company, in date sequence. The transactions can be grouped by tax articles, which typically group transactions that have the same tax percentage.

In addition to the VAT book, instead of the VAT declaration, companies must yearly submit a VAT liquidation report which shows the net VAT amount payable to the tax authorities for the report period.

The liquidated VAT amount is the result of the VAT on purchases minus the VAT on sales. If the result is a negative amount, the amount must be paid to the tax authorities. If the result is a positive amount, the amount is carried over as a credit amount to the next VAT book period.

'Infor LN SP1 does not support the VAT book and the VAT liquidation report.