Split Payment Exclusion for Compensation and Barter Transactions with Public Administrations

• In transactions with public administrations, payment may be partially or fully compensated with credits rather than paid in cash.
• This raises questions about the application of the split payment regime (art. 17-ter, DPR 633/72).
• Tax authorities clarified that split payment does not apply when compensation occurs between mutual credits, as the supplier already has the due amount and both parties are fiscally reliable.
• The same simplification applies to barter transactions (operazioni permutative) for service payments.
• These practices aim to simplify compliance where there is no real risk of non-payment.

Source: eutekne.info

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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