With the reply in object, dated 15.07.2021, the Agency, in the face of a question posed by an Administration, provided an interpretation that could potentially be of interest to insurance companies.
Basically, the Administration states that, when one of your vehicles is damaged and is repaired in a body shop affiliated with your insurance company, this pays the repairer who issues an invoice to the Administration. The latter asked the Agency for confirmation that the service in question is not subject to split payment (art. 17 ter DPR 633/1972).
In the response in question, the Agency states that the operation as briefly described above is subject to split payment, with the consequence that the repairer must issue an invoice without additional VAT to the Administration and the Company must pay the amount of the repair to the supplier, net of VAT and the amount of VAT to the Administration.
The Company therefore finds itself having to make a double payment to settle a single claim.
Please note that the split payment is applicable to services performed and to sales made to public administrations as well as to:
0a) national public economic bodies, regional and local, including special companies and public personal services companies;
0b) foundations owned by public administrations referred to in the paragraph 1 for an overall percentage of the endowment fund of no less than 70 percent;
a) subsidiary companies, pursuant to the article 2359, first paragraph, n. 2), of the civil code, directly by the Presidency of the Council of Ministers and by the Ministries;
b) companies controlled directly or indirectly, pursuant to the article 2359, first paragraph, n. 1), of the civil code, by public administrations referred to in the paragraph 1 or by bodies and companies referred to in letters 0a), 0b), a) and c);
c) investee companies, for an overall percentage of the capital not less than 70 percent, by public administrations referred to in the paragraph 1 or by bodies and companies referred to in letters 0a), 0b), a) e b);
d) listed companies included in the FTSE MIB index of the Italian Stock Exchange identified for the purposes of value added tax.
The list of entities required to apply split payment is available on the site www.indicepa.gov.it (public administrations) and on the site https://www1.finanze.gov.it/finanze3/split_payment/public/#/#testata for all other subjects.
The split payment does not apply to the provision of services for which the remuneration is subject to withholding taxes at source by way of income tax or to withholding tax as an advance payment (self-employment).
For the sake of completeness, it should be noted that the situation referred to in the question posed by the Administration could also occur outside of the direct compensation of the RCA, in the event that the Company paid directly to the injured party's supplier, subject to split payment, the payment of benefits, other than that subject to withholding.