New flat rate limits and simplified accounting with retroactive effect – Euroconference News

There Budget law 2023 change the limit of revenues or fees relevant to the application of scheme flat rate and for the adoption of scheme Of accounting simplified.

Since 2023 the audience of subjects who can access the flat rate schemesince the access requirement consisting of the limit of revenues or fees that passes is modified, for all taxpayers without any distinction by activity code, from 65,000 euros to 85,000 euroswithout prejudice to all other requirements to be observed for the adoption of the scheme.

It should be remembered that, as a rule, the revenue or compensation limit:

  • it must be briefed per calendar year;
  • must be checked forlast year.

With particular regard to this last aspect, with the circular 9/E/2019the Revenue Agency, on the occasion of the previous increase of the threshold from 30,000 euros in 2018 to 65,000 euros in 2019, specified that “The new revenue/fee limit of 65,000 euros must be verified, as can be seen from the express regulatory provision, with reference to the revenue limit achieved and the fees received in the year prior to the application of the lump sum regime. From this it follows that, for example, in the event that the taxpayer has exceeded the threshold of 30,000 euros in revenues/fees as at 31 December 2018, but has achieved/received, in the same tax period, revenues/fees not exceeding the threshold of 65,000 euros (therefore higher than the limits imposed by the old legislation but lower than those indicated by the new provision of the 2019 budget law), can remain in the flat-rate schemeapplying the provisions introduced by the 2019 budget law”.

Translating the clarification to the 2022-2023 increase, with the threshold passing from 65,000 to 85,000 euros, we have that if the lump sum exceeds the threshold of 65,000 euros in compensation as at 31 December 2022, but in 2022 achieves compensation of less than 85,000 euros, he can continue to apply the lump sum in 2023.

Then there is a further novelty which, however, concerns theexit by the regime.

Indeed, according to the new rule, yes comes out from the flat rate:

  • fromnext year upon exceeding the revenue or compensation threshold, where applicable do not exceed the amount of 100,000 euros;
  • fromsame year in which the threshold is exceeded, if the revenues or fees are collected exceed 100,000 euros.

With the opening of the new year, the number of companies that can apply the law also expands simplified accounting.

In particular, for the purposes ofnatural adoption of the scheme, the revenue thresholds pass:

  • from 400,000 euros to 500.000 euros per year, for companies having as object provision of services;
  • from 700,000 euros to 800.000 euros per year, for companies having as object other activities.

Also in this case, for new activities, it is necessary to adopt the method of information of the revenues that are assumed to be received in the first year.

The new limits apply from January 1, 2023.

However, on the occasion of the previous adjustment of the thresholds from 360 million lire in 2000 to 600 million lire in 2001, the Revenue Agency, with the circular 80/E/2001he had the opportunity to specify that “to identify the “natural” accounting regime for the year 2001, the companies will have to verify whether or not the limit of 600 million in revenues was exceeded in the previous year 2000. Only if in that year they have achieved revenues of an amount not exceeding 600 million lire can they benefit from the accounting system provided for by the aforementioned article 18 of Presidential Decree no. 600 of 1973. Therefore, companies carrying out service activities, which transitioned to the ordinary accounting system due to having achieved in 2000 an amount of revenue higher than 360 but not 600 million lire, must be considered admitted to the simplified accounting system also for the 2001. Taxpayers who in the 2000 tax year exceeded the limit of 360 million, but not the “new” one of 600 million, if they intend to continue to adopt the ordinary accounting system also for the year 2001, will have to, pursuant to article 2, paragraph 1, of Presidential Decree no. 442 of 1997 communicate the option in the first annual VAT return to be presented after the choice made”, attributing thereby retroactive value to the new limit.

Therefore, coming to the current increase, the simplified accounting regime should represent the natural accounting regime for 2023 for companies that in 2022 did not exceed the new limit of 500,000 euros or of 800,000 eurosdepending on the type of business.

Lastly, it should be noted that, pursuant to and by effect of thearticle 14, paragraph 11, Law 183/2011the new thresholds also operate with reference to the limits for the VAT settlement on a quarterly basis (former article 7 Presidential Decree 542/1999).

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New flat rate limits and simplified accounting with retroactive effect – Euroconference News


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