The circumstances under which the law demands auxiliary warehouse registers
According to the wording of Article 14 of Presidential Decree 600/1973 and Article 1 (1) of Presidential Decree 695/1996 taxpayers are required to keep auxiliary warehouse registers as of the second tax period following that in which, for the second consecutive time, the amount of the products and the total quantity of stocks are higher by 5,166,569 EURO and 1,032,914 EURO respectively.
As a result, if an enterprise in years n and n + 1 has exceeded the above limits, the inventory accounting obligation will start from year n + 3 (second period after tax). In order to exclude the obligation to have to take over the daybook, the book of inventories and documents required for VAT their ancillary warehouse entries, you must then carry out a separate check of the two values indicated: Revenues and inventories.
It becomes essential to understand, for both income and inventory, what items to include or exclude.
In terms of turnover, considering that in the event of the start of the business or tax year not coinciding with the calendar year, the same should be converted into one year, should be taken into account:
- The proceeds from the disposition of the property and the provision of services;
- The proceeds from the sale of raw materials and semi-finished products;
- The consideration for the sale of non-mobile equipment;
- Fees for the sale of trading securities;
- The value of the goods that are consumed or destined for purposes other than those of the company;
- The insurance indemnity (for a discussion on remuneration see Tax Circular No. 18/2017) of commodities;
- The contributions due under the contract;
- Account / year contributions due according to the law.
However, are excluded from the calculation:
- Capital gains;
- Potential assets;
- Account / capital contributions;
- The proceeds from the sale of mobile equipment;
- Interest income;
- Income from real estate.
Please note that if multiple activities are exercised, the income to be taken into account are the total sum of the income from the individual activities.
With regard to inventories, however, since these are the same rules for carrying out the activities referred to in the preceding paragraph, it should be noted that you should not update the accounting entries each year.
For the elements included in the calculation, it is necessary to distinguish:
- Products whose production and exchange are commercial activities;
- Raw and auxiliary materials and semi-finished products;
- Work, supplies and services are performed at the end of the year.
Credit-related securities are excluded.
The obligation shall cease from the first tax period following that in which the amount of proceeds or the value of inventories for the second consecutive time is less than the limits indicated.
Remember that auxiliary warehouse registers are not required for individual companies and companies that operate in simplified accounting, and business professionals.
The legislature also excluded from the obligation to keep ancillary accounting of stocks:
- Retailers selling in places open to the public, in in-house stores or by automated equipment, mail-order, home or mobile;
- Persons who sell hotel services;
- Persons who sell food and beverages in public exercises, in company canteens or by vending machines.
The obligation rests with these persons only if they use centralized warehouses which serve one or more shops and provided that at least one of them is situated in a different municipality from that where the activity is carried out.
It was also pointed out that, in the case of the conduct of retail and wholesale activities carried out on the same premises, for the purpose of obligatory verification of the auxiliary entries of the warehouse, the same rules prevail as for retail trade.
They are so-called freight companies or those that deal with the supply of goods and not their production. The wholesalers are obliged in any case to keep auxiliary records of the warehouse, while for retailers the considerations that precede apply.