Market Access

INVOICING OF COMPLETED TRANSACTIONS

If the week of delivery of the gas traded is identified with "W", then the invoicing period of payables/receivables will be the calendar month in which such payables/receivables have been financially settled.

For each invoicing period, within the time limits established in MGAS Technical Rule no. 16 GME will provide Market Participants with:

1. one or more pro-forma invoice notifications for sales made by GME on behalf of Market Participants (other than PA Participants) and financially settled in the reference calendar month;
2. one or more pro-forma invoice notifications for sales made by Market Participants and financially settled during the reference calendar month; the notifications must include all the data needed to issue the invoice/s to GME.

Within the time limits established in MGAS Technical Rule no. 16, GME will:

1. issue invoices to buying Market Participants (other than PA Participants) in respect of transactions financially settled in the same calendar month;
2. send invoices in respect of purchase transactions made by PA Participants in the MGAS;
3. receive from all Market Participants the invoices payable in respect of transactions financially settled in the same calendar month.

Pro-forma invoice notifications and invoices will be exchanged between GME and Market Participants by making them available on the "SetService" electronic platform.

Invoices will be transmitted through the so-called “Sistema di Interscambio” (SDI) information system, if the applicable legislation on electronic invoicing and the related implementing provisions so require.

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BILLING IMBALANCE

The invoicing period of payables/receivables attributed to defaulting Market Participants under Article 73, para. 73.2 c) of the Natural-Gas Market Rules will be the calendar month (M).

Within the tenth working day of the month M+1, GME will provide Market Participants with one or more pro-forma invoice notifications for sales made by GME to Market Participants and for sales made by Market Participants to GME.

After notifiyng pro-forma invoices and within the fifteenth calendar day of the third month following the invoicing period, GME will provide buying Market Participants with the invoices pertaining to the month "M". Within the same time limit, GME will receive from selling Market Participants the invoices payable pertaining to the month "M".

Pro-forma invoice notifications and invoices will be exchanged between GME and Market Participants by making them available on the "SetService" electronic platform. Invoices will be transmitted through the so-called “Sistema di Interscambio” (SDI) information system, if the chargeable legislation on electronic invoicing and the related implementing provisions so require.

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INVOICING OF FEES

If the calendar month pertaining to transactions concluded in the MGAS is identified with “M”, then in the month “M+1” and within the time limits established in the Technical Rules, GME will provide market participants, through the "SetService" digital platform, with one or more pro-forma invoice notifications in respect of the variable fees that they owe to GME for each MWh traded.
GME will provide each market participant with one or more invoices in respect of the above-mentioned fees in accordance with the following timetable:

1. PA Participants, within the 6^th working day of the month M+1;
2. non-PA Participants, within the 10^th working day of the month M+1.

With regard to the other fees payable in the MGAS, GME will issue invoicea to each market participant:

1.  for the access fee, within five days of the date of admission;
2. for the yearly fixed fee, within the third working day of the month following the date of admission, for the first twelve months, and subsequently every twelve months;
3. for the yearly fixed OMPR MGAS fee, by the tenth working day of the month following the end of the calendar quarter including the date of admission;
4. for the variable records-based fee, by the tenth working day of the month of April of each year.

Considering the calendar year as the invoicing year and within the time limits established in the Technical Rules, GME will provide market participants with one or more pro-forma invoice notifications in respect of the fees for requests of cancellation of transactions in the MPGAS.

GME will issue one or more invoices to market participants in respect of the above-mentioned fees according to the following timetable:

1. PA Participants, within the 6^th working day of the month following the last day included in the invoicing period;
2. non-PA Participants, within the 10^th working day of the month following the last day included in the invoicing period.

Pro-forma invoice notifications and invoices will be exchanged between GME and market participants on the "SetService" digital platform. Invoices will be transmitted through the Sistema di Interscambio (SDI), if the legislation applicable from time to time on electronic invoicing and its implementing provisions so require.

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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 gas system. In particular, paragraph 50 of the Article 1 of this Law establishes that "(…) 50. The gas sales carried out in the natural gas system as referred in Article 2, paragraph 1, letter ee) of the legislative decree of 23 May 2000, n. 164, 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 definition of natural gas "system", as referred in Article 2, paragraph 1, letter ee) of Legislative Decree n. 164 of 23 May 2000, and subsequent amendments, also includes the trading platforms and the natural gas market managed by GME.

For gas sales made on MGAS GME issues an invoice to Market Participants, based on the tax system of each Market Participant.

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

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REVERSE CHARGE

The territory related to gas sales through natural gas distribution systems 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 gas sales made on the MGAS, 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 of 26 October 1972. GME will pay VAT by applying the reverse charge.

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

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

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REDUCED VAT RATE

Market Participants that want to receive an invoice with a reduced VAT rate must submit a declaration certifying the gas destination to be purchased.
An example of declaration certifying the gas introduced into the network 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 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 when the customer is a subject based in Italy, except in the case where the Italian customer is qualified as "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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SPLIT PAYMENT FOR GAS 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 gas sales made to participants established in Italy which certify, by submitting a specific self-certification made pursuant to Article 47 of the DPR 445 of 28/12/00, to be subject to split payment and not to be qualified, for the same operations, as a taxable dealer or as a “esportatore abituale”.

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

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