VAT-free sale and NATURA CODES – RetailForce Software GmbH

In Italy, certain types of transactions are exempt from VAT. The type (the ‘nature’) of the transaction is defined by so-called ‘NATURA CODES’.

The following transaction types are available:

Abbrev.	Code	Designation (IT)	Description	Print (EPSON)
*EE	N1	escluse ex art. 15	except pursuant to Art. 15	Exclusa
*NS	N2	non soggette	not subject	Non sogetta
*NI	N3	non imponibili	not taxable	Non imponibile
*ES	N4	esenti	exempted	Esente
*RM	N5	regime del margine	Margin regime / VAT not shown on invocie	Regime del margine
*SL	N6	Altro non IVA	Other non-VAT transactions	Operazione non IVA

Implementation in RetailForce

The type of VAT-exempt transaction is defined by assigning it to a specific VAT class (property: vatIdentification) and specifying 0% VAT (property: vatPercent).

Mapping

Currently (Release 1.8.x), the NATURA CODES are assigned to the following VAT classes (vatIdentification).

vatIdentification	NATURA CODE
5	N1
6	N2
7	N3
8	N4
9	N5
10	N6

Note: the VAT classes depend on the respective country. The above list applies exclusively to the country module [IT] = Italy.

Multi-purpose vouchers

When purchasing multi-purpose vouchers, the NATURA CODE N2 (‘NS’ - non soggette / non subject) should be indicated.

Detail codes

In principle, a more detailed subdivision should have been made since 1 January 2021. However, the interface to EPSON only allows the ‘old’ NATURA CODES N1-N6 to be specified.

N1	excluded pursuant to Art. 15 Revenue pursuant to Art. 15, Presidential Decree No. 633/72, in particular: interest / penalties for late payment / other irregularities in the fulfilment of amounts due to the purchaser/client Goods sold as discounts, premiums or rebates Amounts due as reimbursement of advances made in the name and for the account of the other party, provided they are regularly documented
N2.1	Reverse charge (since 01.01.2021 - formerly N6)
N2.2	Invoices issued by a flat-rate taxpayer; Other cases not subject to flat-rate tax
N3.1	Non-taxable exports
N3.2	Non-taxable, intra-Community trade (within the EU)
N3.3	Non-taxable supplies to San Marino
N3.4	Non-taxable transactions treated as export supplies
N3.5	Non-taxable - from declaration of intent from usual exporters
N3.6	Other non-taxable sales that do not contribute to the formation of the upper limit Sales in connection with goods that are in transit or in duty-free warehouses. Transfers to persons domiciled outside the EU and others
N4	Exempt
N5	Margin regime / VAT not shown on the invoice Transactions relating to the sale of second-hand goods. Invoices from travel and tourism agencies (‘regime del margine - agenzie di viaggio’) are required.
N6.1	Reverse charge - transfer of scrap and other recyclable materials
N6.2	Reverse charge - transfer of gold and pure silver
N6.3	Reverse charge - subcontracting in the construction sector
N6.4	Reverse charge - transfer of buildings
N6.5	Reverse charge - transfer of mobile phones
N6.6	Reverse charge - transfer of electronic products
N6.7	Reverse charge - services in the construction sector and related sectors
N6.8	Reverse charge - transactions in the energy sector
N6.9	Reverse charge other cases comparable to the above activities
N7	VAT paid in other EU countries (distance sales, telecommunications, tele-broadcasting and provision of electronic services)

Implementation in RetailForce

Mapping

Multi-purpose vouchers

Detail codes

Related articles