Market Access

ACCOUNTING AND TAXATION

Billing

BILLING OF CCT
INVOICING THE FEES

TAXATION

TAXATION
GME SUBJECT TO SPLIT PAYMENT
FEE FOR THE ASSIGNMENT OF RIGHTS TO USE TRANSPORTATION CAPACITY (CCT)
VAT APPLICATION TO FEES INVOICED BY GME

BILLING OF CCT

Considering W the week in which the energy subject to program registration has been delivered to the PCE, the invoicing period of the payoffs related to the valuation of the CCTs is the calendar month in which these payoffs were financially settled.

For each invoicing period, within the terms established in the Technical Rules, GME makes available to Participants:

1. one or more proforma invoice communications for sales made to Participants (other than PA Participants) and financially settled in the reference calendar month;
2. one or more proforma invoice communications for sales made by Participants and financially settled in the reference calendar month. In particular, these communications include all the information necessary for Participants to prepare the invoices to be issued to GME.

Within the terms established in PCE Technical Rules n. 06, GME issues, to the purchasing Participants (other than the PA Participants) the invoices related to the payoffs, financially settled, within the same calendar month.

For PA Participants, within the terms established in PCE Technical Rules n. 06, GME sends the invoices related to the payoffs concluded as purchases on the PCE by the same.

Within the terms established in PCE Technical Rules n. 06, GME receives, from all sellers, the passive invoices related to the payoffs financially settled in the same calendar month. 

The exchange of communications related to the proforma invoices and invoices between GME and Participants takes place through the provision on the "SetService" IT platform. Under the conditions set forth by the legislation in force from time to time on electronic invoicing and of the related implementing provisions, the invoices are transmitted through the so-called Sistema di Interscambio (SDI).

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INVOICING THE FEES

Given "M" as month related to transactions on PCE, in the month "M+1" and within the terms defined in the Technical Rules, GME makes available to Participants one or more proforma invoice communications for the fees to be paid to GME for each MWh traded.
GME issues each Participant one or more invoices related to the fees accrued on the PCE in month M by the 6th working day of month M+1. Where applied, the VAT on fees is at the ordinary rate.

With reference to the invoicing of the other fees provided on PCE, GME issues an invoice to each Participant for:

1. the access fee, within five days following the date of the admission decision;
2. the yearly fixed fee, by the third working day of the month following the date of the admission decision, for the first twelve months, and subsequently every twelve months.

The exchange of communications related to the proforma invoices and invoices between GME and Participants takes place through the provision on the "SetService" IT platform. Under the conditions set forth by the legislation in force from time to time on electronic invoicing and of the related implementing provisions, the invoices are transmitted through the so-called Sistema di Interscambio (SDI).

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TAXATION

The Law n. 239 of 23 August 2004 regarding the "Reorganisation of the energy sector", in force since 28 September 2004, provides details related to taxation of operations carried out on the electricity market and it is also applied to the PCE. In particular, paragraph 38 of the Article 1 of this Law establishes that "The operations carried out on the market managed by the subject as referred in Article 5, paragraph 1, of the legislative decree of 16 March 1999, n. 79, are considered carried out, for the purposes and effects of Article 6 of the decree n. 633 of the President of the Republic of 26 October 1972 and subsequent amendments, upon payment of the fee, except for the provisions of the fourth paragraph of the same Article 6".

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

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GME SUBJECT TO SPLIT PAYMENT

GME is one of the parties to which the VAT payment system called "split payment" applies, pursuant to Article 17-ter, paragraph 1 bis of the Decree of the President of the Italian Republic n. 633/72.

Therefore, participants based in Italy must issue an invoice with application of this system to GME for the payoffs related to the valuation of the CCTs.

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FEE FOR THE ASSIGNMENT OF RIGHTS TO USE TRANSPORTATION CAPACITY (CCT)

For CCTs, subjection to VAT depends on the place where the Participant has established hid/her/its business.
Therefore, the payoffs related to CCT valuation:

1. between counterparties holding a VAT number in Italy are subject to VAT at the ordinary rate, except in the case in which the Italian client is a "esportatore abituale" pursuant to Article 8, paragraph 1, letter c) of the Decree of the President of the Italian Republic n. 633/72. Therefore, an invoice without VAT will be issued;
2. between EU Participants, they are not subject to VAT if the purchaser is a taxable entity in its own country. In this case, it is the participant that applies the reverse charge;
3. between non-EU Participants, they are not subject to VAT.

GME issues an invoice for CCTs, with reference to VAT payment system called "split payment", to Participants established in Italy that certify, by submitting a specific self-certification made pursuant to Article 47 of the Decree of the President of the Italian Republic n. 445 of 28/12/00, that split payment can be applied to them.
An example of a declaration for the status of Participant subject to split payment can be found here.

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VAT APPLICATION TO FEES INVOICED BY GME

GME's fees are classified as generic services. For VAT purposes, it must be checked the place where the taxable customer is established as mentioned in Article 7 ter of the Decree of the President of the Italian Republic n. 633/72, which implements Article 44 of Directive 2006/112/EC.

Therefore, GME issues an invoice with VAT at the standard rate if the customer is a taxable entity based in Italy, except in the case where the Italian customer is a "esportatore abituale", pursuant to Article 8, paragraph 1, letter c) of the Decree of the President of the Italian Republic n. 633/72. Therefore, an invoice without VAT will be issued.

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

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

GME issues an invoice for the fees, with reference to VAT payment system called "split payment", to participants established in Italy that certify, by submitting a specific self-certification made pursuant to Article 47 of the Decree of the President of the Italian Republic n. 445 of 28/12/00, that split payment can be applied to them.

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

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