How to Record the Tax Credit Transfer in the Accounts

Invoice discount and credit transfer in brief

The invoice discount is a mechanism whereby the contractor doing the works applies a discount equal, wholly or in part, to the deduction due, later recovering the corresponding tax credit. The credit transfer is instead the assignment to a third party, often a financial intermediary, of the credit deriving from the deduction.

In both cases the condominium does not pay fully in cash: part of the cost of the works is covered by the relief turned into a discount or a credit. This affects the special fund, which will have to cover only the share actually borne by the condominium in cash.

These options are provided by Article 121 of Decree-Law 34 of 2020, but their scope has been progressively restricted by later rules, in particular from 2023 onward. Before setting up the operation, always check whether the project and the situation fall within the cases still allowed by the rules in force.

The impact on the special fund

When part of the cost is covered by an invoice discount or transfer, the special fund resolved under Article 1135 need not cover the entire cost of the works in cash. The fund should be sized on the share actually borne by owners, that is the part not absorbed by the relief, plus any non-relieved accessory costs.

It is essential that the resolution clearly records how the works are financed: the share covered by the relief and the share borne by the fund in cash. This way owners know exactly how much they will have to pay and on what basis the fund installment plan is built.

How to record the amounts in the accounts

In the site's separate accounting the cost of the works should be recorded at its full value, distinguishing the part paid in cash from the fund and the part covered by the discount or transfer. The invoice discount reduces the amount the condominium transfers to the contractor; the accounts must show both the full value of the works and the discount applied.

The share paid in cash follows the ordinary rules: a dedicated transfer with the description that triggers the withholding tax on deductible works, recording the gross and the withholding in the ledger. The part covered by the relief does not generate a cash outflow but must still be tracked, because it contributes to the total cost of the project and matters for the certificates to owners.

• Full value of the works recorded in the site ledger
• Share covered by invoice discount or transfer, with no cash outflow
• Share borne by the fund paid in cash by dedicated transfer
• Withholding tax on the transferred part for deductible works

Reporting the operation to the meeting

The separate works report must transparently represent the mixed financing: total value of the project, part covered by the relief, part paid in cash by the fund. Only this way does the meeting understand why the fund collected is lower than the nominal value of the works.

The documents proving the operation must be kept: invoices showing the discount, any credit transfer contracts, notices, and receipts. Article 1130-bis grants owners the right to inspect the supporting documents, and in mixed financing documentary clarity is even more important to avoid disputes.

Keeping order with software

Mixed financing, with part in cash and part covered by relief, is more complex to report. Keeping the site in separate management lets you distinguish the two components precisely and derive both the report and the certificates to owners.

With AmministraPro you can record the full value of the works, the part covered by the relief, and the share paid in cash by the fund, keeping the traceability needed for the separate report. The features are described on the /funzioni page and the available plans with their costs on the /prezzi page. For the correct tax handling of the operation, support from a professional is nonetheless advisable.

Frequently asked questions