Technical Rule no. 05 rev3 EM. Invoicing of payables/receivables and settlement of payments

Transcription

1 Page 1 of 6 Technical Rule no. 05 rev3 EM (under Article 4, GME s Emissions Trading Market Rules) Title Invoicing of payables/receivables and settlement of payments Reference legislation Article 29bis; Article 30; Article 34, para. 34.1; and Article 36, para. 36.1, GME s Emissions Trading Market Rules Published on 1 January 2010

2 Page 2 of 6 1. Foreword Article 29bis of GME s Emission Trading Rules provides that the Technical Rules shall define the invoicing period. Under Article 30 of GME's Emissions Trading Market Rules, the Technical Rules shall define the time limits and procedures for issuing invoices for the amounts pertaining to the buy transactions concluded by Market Participants, as well as those for notifying the data required for issuing invoices for the amounts pertaining to the sell transactions concluded by Market Participants. Articles 34 and 36 of GME s Emissions Trading Market Rules provide that the Technical Rules shall define the time period and procedure for invoicing the fees owed to GME under Article 7 of the same Rules, as well as the procedures and time limits for the payment of the same fees. 2. Invoicing The invoicing period for the transactions concluded in GME s Emissions Trading Market shall be each working week of trading. 2.1 Notifications issued by and invoices to be received by GME For each invoicing period, by the end of the first working day following the end of the reference working week of trading, GME shall send a notification to each Market Participant that is in credit towards GME. The notification shall indicate the amounts pertaining to the sell transactions concluded by the same Market Participant in the Emissions Trading Market. Based on this notification, the Market Participant shall issue an invoice to GME by the end of the next second working day. To this end, GME shall provide the Market Participant (by ) with an xml file, ready to be converted into the corresponding invoice.

3 Page 3 of Invoices to be issued by GME For each invoicing period, by the end of the second working day following the end of the reference working week of trading, GME will send (by ) an invoice to each Market Participant that is in debit towards GME. The invoice shall indicate the amounts pertaining to the buy transactions concluded by the same Market Participant in the Emissions Trading Market. 3. VAT treatment Purchases and sales in the Emissions Trading Market shall mean supplies of services and the VAT chargeability thereon shall depend on the place of residence of the purchasing customer, Emissions Trading Market Participant. 3.1 VAT treatment of supplies to domestic Market Participants Supplies to Market Participants holding a VAT identification number in Italy shall be subject to VAT at the standard rate of 20%. 3.2 VAT treatment of supplies to Market Participants established in the European Union No VAT shall be applied on sales to Market Participants established in the European Union, where they are taxable persons in their own countries. VAT shall be applied at the standard rate of 20% where the EU Market Participants are not taxable persons in their own countries. In the case of a purchase from an EU taxable person, GME shall receive an invoice without VAT and then apply the Italian VAT with the reverse charge procedure.

4 Page 4 of VAT treatment of supplies to Market Participants established outside the European Union Sales to Market Participants established outside the European Union shall not be subject to VAT, regardless of the fact that the purchasing customers are taxable or non-taxable persons in their own countries. In the case of a purchase from a non-eu Market Participant, GME shall receive an invoice without VAT and then apply the Italian VAT with the reverse charge procedure. 4. Adjustments of invoices Where the Market Participant issues an invoice to GME and the taxable amount or the VAT amount thereof do not correspond to the ones specified in the related notification sent by GME as per para. 2.1 above, the Market Participant is required to issue a credit memo in order to partially or totally reverse the amounts erroneously reported in the invoice. The memos referred to in this paragraph may be issued as xml files and attached to an e- mail message, or produced on paper medium and sent by mail. In the latter case, a copy of the memo shall be sent by fax. 5. Refund of the available deposit The available deposit (Technical Rule no. 02 Rev. 1 EM on Finance Management, para. 2.2, Request of refund of available deposit) shall be refunded by the end of the working day following the one of receipt of the supporting invoices. The date and time of debiting the payments to GME s bank account shall be those recorded by the information system of the bank in charge of the Electricity Market treasury services. 6. Invoicing of fees The reference periods for invoicing the variable fees for each emission unit or allowance traded shall be the following quarters: January-March, April-June, July-September and

5 Page 5 of 6 October-December. By the end of the seventh working day of the month following each reference period (or if such day is a non-working day, the immediately following working day), GME shall issue an invoice to each Market Participant with the sum of the fees owed for all the trades of emission units or allowances made in the immediately preceding reference period. 7. Time limit for settlement of payments Each Market Participant shall pay the amounts due within the third-to-the last working day of the month in which GME has sent the related invoice and with value date on the same day.

6 Page 6 of 6 Appendix: VAT codes The following tables show the VAT codes used in XML files. VAT CODES FOR MARKET PARTICIPANTS PURCHASES V1 V8 DESCRIPTION Domestic supplies VAT rate applied = 20% Not subject to VAT as per Articles 44 and 59, Directive 2006/112/EC VAT rate applied = 0% VAT CODES FOR MARKET PARTICIPANTS SALES A1 A7 DESCRIPTION Domestic supplies VAT rate applied = 20% Not subject to VAT as per Articles 44, 59, para. 1 a) and 196, Directive 2006/112/EC Reverse charge