The reverse charge is a tax mechanism that finds wide application in various economic sectors, including that of gas and electricity sales. Recently, the Revenue Agency has provided further clarifications with the legal principle n. 2/2024, regarding the correct management of theVAT on electricity sales prior to 2015, in case of price changes.
But what are the main implications of this regulatory update and how does it affect invoicing?
Let’s analyze the details of this complex regulation.
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Changes in taxable base for sales before 2015
The Revenue Agency has clarified that in the event of an update of prices relating to electricity sold before 2015, any additional compensation received as a result of such changes must be invoiced with the application of theOrdinary VATand not under the reverse charge regime.
This is because, at the time the original invoices were issued, the reverse charge was not yet applicable to electricity sales.
This clarification specifically concerns transactions concluded before the introduction of the reverse charge in 2015, which was initially adopted to combat tax fraud in particularly vulnerable sectors, such as technology and electronic devices.
However, for energy sales made before that date, VAT must be managed following the ordinary regime. This means that the higher fees received for the price update must be charged to the customer with the addition of VAT, even if the original invoices did not include the reverse charge.
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Reverse charge in the energy sector
The reverse charge mechanism was introduced in Italy for electricity and gas sales starting from 2015, with the aim of reducing tax fraud. Initially foreseen for a limited period, it was subsequently extended several times, with the last extension valid until 31 December 2026, in accordance with Directive 2022/890/EU.
In Italy, this extension was implemented with Legislative Decree no. 73 of 21 June 2022, converted with amendments by Law no. 122 of 4 August 2022.
The reverse charge allows the transfer of VAT-related tax obligations from the transferor (supplier) to the transferee (buyer). This means that, in derogation of the ordinary system, the buyer takes charge of the payment of VAT, thus reducing the opportunities for tax evasion by suppliers.
The measure is particularly effective in sectors where it is more difficult to correctly track transactions, such as the energy sector.
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Application of the reverse charge for taxable persons-resellers
Since 2015, the reverse charge also applies to gas and electricity sales towards the so-called passive-reseller subjects. As defined by article 7-bis of Presidential Decree no. 633/1972, the passive-reseller subject is the one who purchases gas or electricity mainly for resale, and not for personal use, the consumption of which is considered negligible.
This mechanism is particularly relevant in the context of the energy market, where many companies buy and resell energy and gas to end customers. Managing VAT with the reverse charge simplifies the invoicing process and ensures that the tax is applied correctly, avoiding fraud or errors.
However, it is essential that companies involved in energy supplies pay attention to the correct classification of their customers as taxable persons-resellers, since the reverse charge regime applies only in these specific cases.
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Exclusion of reverse charge for previous credit notes
Another important point clarified by the Revenue Agency concerns credit notes. In particular, the reverse charge regime does not apply to credit notes issued for invoices referring to periods prior to the entry into force of the reverse charge mechanism.
This means that, for all transactions concluded before 2015, even if changes or corrections occur today, the ordinary invoicing regime must continue to be used.
This is relevant for companies that need to correct past invoices for gas or electricity sales. The adoption of the reverse charge for new transactions does not retroactively affect past transactions, ensuring a clear separation between the current and previous tax regimes.
