The energy transactions (sales of goods) subject to delivery shall be deemed to be made at the time of its delivery for the purposes and effects of Article 6 of the Decree of the President of the Republic n. 633 of 26 October 1972 (VAT Presidential Decree), except as provided in the fourth paragraph of the same Article 6.

The list and description of the VAT codes used by GME for invoicing of the economic items and fees are available here.

The capacity of power actually made available shall mean ordinary services whose subjection to VAT depends on the place where the customer (Market Participant) has established his/her/its business, as provided by Article 7ter of the VAT Presidential Decree, which implements Article 44 of Directive 2006/112/EC.

Market Participants that want to receive invoices, for the power purchases transactions subject to delivery, with a reduced VAT rate because they are wholesale customers pursuant to Article 2 of the legislative decree n. 79 of 16 March 1999, are required to submit a declaration of their status of wholesale customers.

An example of wholesale customer declaration can be found here.

Market Participants that want to receive an invoice with a reduced VAT rate, as holders of withdrawal points for electricity used for mining, agricultural and manufacturing companies including printing, publishing and similar companies, are required to submit a declaration certifying that the electricity withdrawn from these points is allocated for the aforementioned uses.

The territoriality of the energy transactions subject to delivery is covered by Article 7 bis, paragraph 3, of the VAT Presidential Decree which implements Articles 38 and 39 of Directive 2006/112/EC and subsequent amendments.

Therefore, Market Participants established in Italy that want to receive an invoice with application of reverse charge are required to submit a declaration certifying their status of taxable dealer for each of energy transaction subject to delivery concluded on the MLF and in any case until its revocation. For energy transactions subject to delivery carried out by GME to Italian Market Participants which are taxable dealer, GME issues an invoice without VAT. In this case, the reverse charge will be applied by the Market Participant.

An example of a taxable dealer declaration can be found here.

For energy transactions subject to delivery carried out by Market Participants, to GME, Market Participants issue an invoice without applying VAT to GME, which has the status of taxable dealer pursuant to article 7-bis of the VAT Presidential Decree. In this case, GME will apply the reverse charge.

For energy transactions subject to delivery carried out by GME to EU Market Participants and non-EU Market Participants, GME issues an invoice with application of the VAT related to each specific situation for VAT purposes declared by the them.

An example of a declaration from a foreign Market Participant for VAT application in Italy can be found here.

The "split payment" system provides that, pursuant to Article 17-ter of the VAT Presidential Decree, VAT is paid directly to the Italian Tax Authority by the buyer/principal with reference to his/her/its purchases of goods and services in Italy for which he/she/it is not liable for the payment of the VAT pursuant to the provisions on Value Added Tax.

GME issues an invoice with reference to the above mentioned system for the energy transactions subject to delivery to Market Participants established in Italy that send to GME a self-certification, pursuant to Article 47 of the Presidential Decree n. 445 of 28/12/2000, certifying to be subject to the split payment and not to be qualified, for the same transactions, as a taxable dealer or as a “esportatore abituale” (“Italian exporter on a permanent basis”).

An example of a declaration for the status of Market Participant subject to split payment can be found here.

GME's fees shall mean ordinary services, for VAT purposes, whose subjection to VAT depends on the place where the customer has established his/her/its business as provided by Article 7 ter of the VAT Presidential Decree, which implements Article 44 of Directive 2006/112/EC.

Therefore, GME issues a regular invoice with VAT when the customer is established in Italy, except in the case where the Italian customer is a “esportatore abituale”. In this last case GME issues invoice without VAT.

GME, on the other hand, issues an invoice without VAT when the customer is a taxable EU Market Participant in its own Country. In this case, the Market Participant will apply the reverse charge.

In case of a non-EU customer, GME issues an invoice without VAT.

GME issues an invoice for the fees, with reference to the "split payment" system, to Market Participants established in Italy that certify, by submitting a self-certification pursuant to Article 47 of the Presidential Decree n. 445 of 28/12/2000, that split payment can be applied to them.

An example of a declaration for the status of Market Participant subject to split payment can be found here.