Market Access

ACCOUNTING AND TAXATION

INVOICING

MLF INVOICING
INVOICING OF THE FEES

TAXATION

TAXATION
REDUCED VAT RATE
REVERSE CHARGE
SPLIT PAYMENT FOR ENERGY TRANSACTION SUBJECT TO DELIVERY
VAT APPLICATION TO FEES INVOICED BY GME

MLF INVOICING

Considering M the month subject of invoicing, having received the data from the DSO, GME make available, under the procedures and within the terms and conditions established in the Technical Rules:

1. one or more proforma invoice communications to Market Participants for energy sales transactions, with a unit price higher than or equal to zero, concluded on the MLP-Flex and for energy purchases not delivered with a unit price higher than or equal to zero, that GME has attributed;
2. one or more proforma invoice communications for the supply of services in relation to the quantity of capacity actually made available by GME;
3. one or more proforma invoice communications for energy sale transactions, with a unit price higher than or equal to zero, made by Market Participants to GME on the MLP-Flex and for energy sales not delivered, with a unit price higher than or equal to zero, that GME has attributed, including all the information necessary for the preparation of the invoice(s) to be issued to GME;
4. one or more proforma invoice communications for the supply of services in relation to the quantity of capacity actually made available by the Market Participants, including all the information necessary for the preparation of the invoice(s) to be issued to GME.

Within the terms and conditionsestablished in the Technical Rules, in month "M+1" GME issues invoices to each of its debtor Market Participant for the quantity of capacity actually made available on the MLF and, in the same month "M", issues invoices for the energy delivered on the MLP-Flex and energy not delivered attribuited by GME.

Furthermore, in month "M+1", GME receives payable invoices from each creditor Market Participant for the quantity of capacity actually made available on the MLF and, in the same month "M", receives the invoices for the energy delivered on the MLP-Flex and energy not delivered attribuited by GME.

Invoices and proforma invoice communications are organised by fields and field groups that show the details of all transactions made.

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

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INVOICING OF THE FEES

The reference periods for the invoicing of the variable fees are: the January-March quarter, the April-June quarter, the July-September quarter and the October-December quarter. For each invoices period, GME, having received the data from the DSO and within the terms and conditions defined in the Technical Rules, makes available to Market Participants one or more proforma invoice communications for the fees due to itself.

The GME, by the sixth working day of the month following the last day included in the invoicing period, issues to each Participant one or more invoices related to the fees accrued in relation to i. the capacity of power traded on MLT-Flex and ii. the transactions for energy purchase and sale concluded on the MLP-Flex; and iii. the transactions of energy not delivered that GME has attribuited.

With regard to the invoicing of the other fees owed on the MLF, GME will provide each Market Participant with invoices for:

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

The invoices will be exchanged between GME and Market Participants by making them available on the "SetService" IT platform. Under the conditions set forth by the legislation in force from time to time on electronic invoicing and the related implementing provision. GME sends the invoices to Market Participants through the so-called Sistema di Interscambio (SDI).

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TAXATION

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 Italian Republic no. 633 of 26 October 1972 (VAT 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 quantity of capacity 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 Decree, which implements Article 44 of Directive 2006/112/EC.

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REDUCED VAT RATE

Market Participants that want to receive invoices, for the energy purchases transactions subject to delivery, with a reduced VAT rate because they are wholesale customers pursuant to Article 2 of the legislative decree no. 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.

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REVERSE CHARGE

The territoriality of the energy transactions subject to delivery is covered by Article 7 bis, paragraph 3, of the VAT 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 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.

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SPLIT PAYMENT FOR ENERGY TRANSACTIONS SUBJECT TO DELIVERY

The "split payment" system provides that, pursuant to Article 17-ter of the VAT 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 Decree of the Italian Republic no. 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.

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VAT APPLICATION TO FEES INVOICED BY GME

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 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 no. 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.

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