Split Payment

Split payment, is a particular regime which establishes that the VAT debtor is the transferee/customer rather than, as normally happens, the transferor/vendor.

It follows that, for operations subject to split payment, the transferee/customer does not pay VAT to his transferor/vendor considering the fact that the same is “paid” directly to the treasury.

Setup

On the “VAT posting setup” page, you need to create the appropriate records with the “Split Payment” flag set to Yes:

Operating logic

By registering the sales document with the defined setup combination, the system automatically takes care of generating the VAT transfer, VAT which will be paid to the Treasury directly by the customer (transferee/customer):

VAT Entries generated

Customer Ledger Entries generated

General Ledger Entries generated

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