Free gifts: fiscal discipline and new technical provisions.

From 1° October 2020 it is possible to use the new code "TD27" for free gifts and self-consumption

Electronic invoicing is affected by important news from 1° January 2021: all taxpayers will have to consider the new technical specifications ordered by the Revenue Agency. Optionally, it was possible to use the new codes already starting from 1° October 2020. Among these, there is the code “TD27: invoice for self-consumption or for free gift” which, as reported in the “guide of the electronic invoices and the esterometro” must be used for the operations ex art. 2, paragraph 2, points 4) and 5) of the DPR n. 633/1972:

  • free transfer of goods with the exception of those whose production or trade is not part of the company’s own activity if the unit cost does not exceed 50 euros and those for which it has not been operated, at the time of purchase or import, the VAT deduction;
  • destination of goods for the personal or family use or consumption of the entrepreneur or of those unrelated to the business or to the exercise of the art or profession, with the exclusion of those assets for which the tax deduction was not made at the time of purchase.

It is specified that, in the supplier field and in the client field, must be indicated only the VAT identification of the person issuing the self-invoice. Furthermore, as recently reported in the circular of 17 June 2019 n. 14, this self-invoice must be recorded exclusively in the register of invoices issued.

For VAT purposes, please note that, if the gift includes goods are not part of the company’s own business, the free transfer is always excluded from the scope of VAT (art.2 co. 2 n. 4 of DPR n. 633/72), while VAT is deductible only if the unit value of the asset is less than 50 euros (art. 19-bis1 paragraph 1 letter h of DPR n. 633/72).

Regarding income taxes, on the other hand, the expenses relating to goods distributed for free:

  • they are fully deductible if the assets have a unit value not exceeding 50 euros;
  • if the assets have a unit value higher than the 50 euros they are configured as entertainment expenses and are deductible during the year within the limits established by art. 108 co. 2 of the TUIR.

Alessandro Cardona