Market Access

INVOICING MTE E MPEG

Considering "M" as calendar month related to the transactions concluded on the MPEG and on the MTE, GME shall, in the month "M+1" and within the terms defined in Technical Rules, make available:

1. one or more proforma invoice communications for sales made by GME to Market Participants;
2. one or more proforma invoice communications for the services provided by GME following the sales by Market Participants on the MPEG with a negative unit price;
3. one or more proforma invoice communications for the sales made by Market Participants to GME and containing all the information necessary for preparation of the invoices to be issued to GME;
4. one or more proforma invoice communications for the services provided by the Market Participants following all the purchases of the Market Participants on the MPEG with a negative unit price, containing all the information necessary for preparation of the invoices to be issued to GME.

In the month "M+2", within the terms defined in Technical Rules, GME:

1. issues invoices to each participant related to sales made on MPEG and MTE in month "M"
2. receives passive invoices from each participant related to purchases made on MPEG and MTE in month "M".

The exchange of communications related to the proforma invoices and invoices between GME and Market 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 the calendar month related to the transactions concluded on the electricity market, in the month "M+1" and within the terms defined in the Technical Rules, GME makes available to Market Participants one or more proforma invoice communications for the fees variables due for each MWh traded on the MGP, MI, MPEG and MTE.

GME issues each Market Participant one or more invoices related to the fees accrued for transactions concluded in month Mm according to the following timing:

1. by the 6th working day of the month M+1 for the fees accrued on the MGP and on the MI;
2. by the 6th working day of the month M+2 for the fees accrued on the MPEG and on the MTE.

The variable fees due for the services provided by GME on the MSD are invoiced following the closure of the Balancing Market (MB).

With reference to the invoicing of the other fees provided on the Electricity Market, GME issues an invoice to each Market 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 invoices between GME and the Market 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 Intercambio (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.

In particular, paragraph 38 of the Article 1 of this Law establishes that "The operations carried out on the electricity market referred to 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 of  the President of the Italian Republic n. 633 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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SUPPLIES OF ENERGY AT A NEGATIVE UNIT PRICE AND SUPPLIES OF SERVICES RESULTING FROM SUPPLIES OF ENERGY AT A NEGATIVE UNIT PRICE

Supplies of energy concluded with a negative unit price are qualified for VAT purposes as transactions that are not subject to VAT.

Supplies of services resulting from the conclusion of energy transactions with a negative unit price are qualified as supplies of generic services whose VAT chargeability depends on the place where the customer is established as required by Article 7ter of Decree of the President of the Italian Republic no. 633 of 26 October 1972 (DPR 633/72), which transposes Article 44 of Directive 2006/112/EC.

Therefore, for the energy purchased at a negative unit price, GME will issue invoices to customers as follows:

1. customer established in Italy: with VAT at the standard rate and eventually application of the "split payment" (pursuant to Article 17ter of DPR 633/72), if any, unless the Italian customer qualifies as esportatore abituale (Italian exporter on a permanent basis) pursuant to Article 8, paragraph 1, letter c) of DPR 633/72, towards whom/which an invoice without VAT will be issued;
2. customer qualifying as taxable person in an EU member country: without VAT as it will be the customer who/which will apply the reverse charge;
3. customer established in a non-EU country: without VAT as the transaction is not subject to VAT.

For the energy purchased at a negative unit price, the Market Participant will issue invoices to GME as follows:

1. supplier established in Italy: with VAT at the standard rate and application of the "split payment" (pursuant to Article 17ter of DPR 633/72);
2. supplier qualifying as taxable person in an EU member country: without VAT as it will be GME that will apply the reverse charge;
3. supplier established in a non-EU country: without VAT as the transaction is not subject to VAT and it will be GME that will apply the reverse charge.

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REDUCED VAT RATE

Market Participants that want to receive invoices with a reduced VAT rate because they are wholesalers pursuant to Article 2 of the legislative decree n. 79 of 16 March 1999, must submit a declaration certifying their status as wholesalers.

An example of wholesaler 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 or for irrigation, lifting and drainage systems of the waters, used by the reclamation and irrigation consortia, must submit a declaration certifying that the electricity withdrawn from these points is intended for the aforementioned uses.

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REVERSE CHARGE

The territory related to electricity sales is governed by Article 7 bis, paragraph 3, of the Decree of the President of the Italian Republic n. 633/72 which implements Articles 38 and 39 of Directive 2006/112/EC and subsequent amendments.

Market Participants established in Italy that want to receive an invoice with application of reverse charge must submit a declaration certifying their status of taxable dealer for each single offer submitted and, in any case, until their revocation. For sales made by GME to Italian Participants that are taxable dealer, GME issues an invoice without VAT. In this case, it is the participant that applies the reverse charge.

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

For energy sales made on the electricity market, Market Participants issue an invoice without applying VAT to GME, which has the status of taxable dealer pursuant to Article 7-bis of Decree of the President of the Italian Republic n. 633/72. GME will pay VAT by applying the reverse charge.

For sales made by GME to EU Participants and non-EU Participants, GME issues an invoice with application of the VAT related to each specific situation for VAT purposes declared by the Market Participant.

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

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SPLIT PAYMENT FOR ELECTRICITY TRANSACTIONS

The VAT payment system called "split payment" provides that, pursuant to Article 17-ter of the Decree of the President of the Italian Republic n. 633/72, VAT is paid directly to Tax authority by the transferee/purchaser in relation to specific purchases of goods and services of territorial significance in Italy for which the same is not a tax debtor pursuant to the provisions on value added tax.

GME issues an invoice with reference to the above mentioned system for the electricity sales made 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 and that they are not qualified, for the same operations, as a taxable dealer or esportatore abituale.

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

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VAT APPLICATIONS TO FEES INVOICED BY GME

For VAT purposes, it must be checked the place where the 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 subject based in Italy, except in the case where the Italian customer is a “esportatore abituale”. In this last case, 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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