Withdrawals In Procurement And Extension Of The Reverse Charge

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Starting from January 1st , the contractors and subcontractors have to determine and pay withholding taxes in procurement, related to income that comes from employed.

This obligation is only applied if the amount of the work or service is more than € 200,000, and only if the work is carried out with the prevalent use of labour.

In order to carry out the appropriate checks, in the following 5 working days, the contractor has the duty to transmit to the client:

  1. the F24 models;
  2. a list of all workers, also indicating the fiscal code, including the detail of the hours for each worker;
  3. the amount of remuneration paid to each worker;
  4. details of the withholding taxes made in the previous month for each worker.

If the contractor or subcontractors did not send the required documents, the client have to stopped the fees payment accrued by the contractor for the entire duration of the non-fulfilment. All this process must be known by the Revenue Agency.

The reason of this provision is to avoid any illegal conduct by contractor or subcontractors.

Furthermore, is extended the application of the reverse charge to the service described above.