GDO

Distributor Types, TIN CODE And Purchasing Limits

Country: Italy
Region: EMEA

Revision History
Release Date Author Version Change Reference

1
Distributor Type Summaries
Currently, the Italy type is under the Miscellaneous tab on HMS

A Type Incaricato: the A Type of Incaricato is a VAT registered distributor with limit up to 4000 VP per annum personal consumption. No restrictions
for consignment. Requirements of A Type Incaricato:
1. Need to obtain a VAT registration.
2. Subject to VAT (currently 20%)
3. Subject to withholding tax called ‘Ritenuta d’imposta’ (currently 23% on 78% of taxable amount = 17.94%)
4. Subject to Social Security withholding tax (INPS)

2
 5. Self-Invoice is printed for both daily and monthly commissions; this document is technically an Invoice, as the Distributor is VAT
registered.

B Type Incaricato: Non VAT registered distributors with limit up to 4000 VP per annum personal consumption. They also have a restriction on
consignment orders, which is € 6410 of earnings (based on discounted amount of consignment orders + all earnings coming from royalties and
commissions.) Requirements of B Type Incaricato:
1. Limited to a maximum yearly threshold on revenue of € 6.410
2. NO need to obtain a VAT registration
3. VAT exempt up to the € 6.410 threshold
4. Subject to withholding tax called ‘Ritenuta d’imposta’ (currently 23% on 78% of taxable amount = 17.94%)
5. Self-Invoice is printed for both daily and monthly commissions; this document is technically a Cash Receipt - not an invoice - as
the Distributor is not VAT registered.
6. Herbalife ask them to pay an additional Annual Fee, which is currently withheld from Earning in Phoenix with a specific transaction
code ITFE.

C Type Distributors: Distributors that are VAT registered independent and they have no limit on personal consumption of items; however IVA
reimbursement or tax on earnings service is not offered to C type distributors. They need to calculate their taxation, by themselves. Requirements
of C Type Distributors:
1. Subject to VAT (currently 20%)
2. Self-Invoice is printed for monthly earnings; this document is technically an Invoice, as the Distributor is VAT registered.

D Type Distributors: Distributors have a limit of personal consumption up to 4000 VP and they cannot place consignment orders. D Type
distributors are not VAT registered. Non VAT registered Distributor is not eligible to earnings. All earnings are being held in Phoenix until the
Distributor submits a VAT registration certificate.

E Type distributors: These distributors are foreign distributors which have no mailing address in Italy and address of shipping must be in Italy and it
is for personal consumption up to 4000 VP. Earnings to non resident Distributor are paid by the original country of residence, therefore no earning
are paid to non resident Distributors by Italy Foreign Distributors (Processing Country <> Italy)

Definition of Incaricati
Function as sales agents and they manage their own customers and portfolios. They can place orders for personal consumption. Also, they can
place orders on behalf of their customers (consignment orders = resale) either by phone, walk-in, pick up, web or fax. They collect the payment
from the customer and pay HL only the discounts amount plus taxes. There are two types of Incaricati – VAT registered and non-VAT registered
which means the invoice calculations will differ in terms of VAT calculations and personal tax calculations.

3
Distributor Web Service Modifications
1. DS Sub Type for Italy will need to be calculated based on active and not expired TIN information.

Sub Type Calculation

Distributor
Type Meaning Rules
True if the DS has following TIN Codes active and
A Tax Registered Incaricato not expired: ITIN and IEVA
Non-Tax Registered
B Incaricato True if the DS has only the TIN code: ITIN
True if the DS has the TIN code: IEVA or TIN code
C Tax Registered DS SMVT
True if DS has no active TIN Code and the DS has
a 'Country of Processing' set to Italy. (IT) or San
Marino (SM).
D2 Italian DS No ITIN, IEVA, SMVT
True if DS has a 'Country of Processing' not Italy
E Non Italian DS (IT) or San Marino (SM).

Resale or Personal Consumption – By Distributor Type/Order Type

Distributor Order Resale/Personal Restrictions

Type Type Consumption
A A1 VENDITA A CLIENTE None
(Resale)
A A2 USO PERSONALE Volume Points – 4000 per year (NTS
(Personal Date (between 1-JAN and 31-DEC of
Consumption) YTD)
B B1 VENDITA A CLIENTE Earnings - € 6410 of earnings ([based
(Resale) on the amount of the discount of

4
 Distributor Order Resale/Personal Restrictions
Type Type Consumption
consignment orders + all earnings
coming from royalties and commissions]
per annum for consignment orders.
B B2 USO PERSONALE Volume Points – 4000 per year (NTS
(Personal Date (between 1-JAN and 31-DEC of
Consumption YTD)
C C2 VENDITA A CLIENTE None
(Resale)
D D2 VENDITA A CLIENTE Volume Points – 4000 per year (NTS
(Resale) Date (between 1-JAN and 31-DEC of
YTD)
E E VENDITA A CLIENTE Volume Points – 4000 per year (NTS
(Resale) Date (between 1-JAN and 31-DEC of
YTD)

Once the sub type has been established then the following will need to be selected
 If the Sub Type is ‘A1’ then the DS will be prompted to select either A1: VENDITA A CLIENTE or A2: USO PERSONALE,
which will need to be passed to HMS.
 If the Sub Type is ‘B’ then the DS will be prompted to select either B1: VENDITA A CLIENTE or B2: USO PERSONALE,
which will need to be passed to HMS.
 For Sub Types equal to C, D2 or E the Internet will pass Vendita A Cliente

2. A2. B2, D2 and E order subtypes are restricted to a Volume Point restriction of 4000 Volume Points per Year. Volume Point
calculation for this limit is based on NTS Date (between 1-JAN and 31-DEC of YTD) and must be for shipping country IT only.
 There will be a counter on the Shopping Cart to provide a running total of the VP’s to date include the items in the Cart.
3. B1 - order subtype the DS will be restricted to a € 6410 of earnings [based on the amount of the discount of consignment orders
(A1 and B1 order subtypes only) + all earnings coming from royalties and commissions] per annum for consignment orders.

5
  The amount of the discount on all A1/B1 orders placed by a DS that NTS’ed between 1-JAN and 31-DEC of the current year +
all Earnings coming from Royalties and Commissions.
4. Counters:
o There will be 2 types of counters for the Internet 1 for YTD volume points and 1 for YTD earnings.
 Volume Point counter will be 4000 Volume Points per year and is based on NTS Date (between 1-JAN and 31-
DEC of YTD) and on shipping country IT only.
 YTD Earnings counter will be € 6410 of earnings (based on the amount of the discount of consignment orders (A1
and B1) + all earnings coming from royalties and commissions) per annum for consignment orders

TIN Code
There are 4 scenarios around TIN Code:
1. Italian TIN = A&B subtypes (see restrictions)
2. No TIN Code = C,D &E subtypes (unrestricted)
3. Foreign/local DS = Dummy TIN Code P, L & A up to 1000 vp/mo.
Website will show a warning message if the volume point is over 1000 vp/month and will not allow purchase of more than 1000VP
4. TIN Code - unrestricted
Distributor Type Order Resale/Personal Consumption Restrictions
Type
A A1 VENDITA A CLIENTE (Resale) None

A A2
B B1
USO PERSONALE (Personal
Consumption)
VENDITA A CLIENTE (Resale)
Volume Points – 4000 per year (NTS Date (between 1-JAN and
31-DEC of YTD)
Earnings - € 6410 of earnings ([based on the amount of the
discount of consignment orders + all earnings coming from
royalties and commissions] per annum for consignment orders.

B B2 USO PERSONALE (Personal Volume Points – 4000 per year (NTS Date (between 1-JAN and
Consumption) 31-DEC of YTD)

6
Distributor Type Order Resale/Personal Consumption Restrictions
Type
C C2 VENDITA A CLIENTE (Resale) None

D D2 VENDITA A CLIENTE (Resale) Volume Points – 4000 per year (NTS Date (between 1-JAN and
31-DEC of YTD)
E E VENDITA A CLIENTE (Resale) Volume Points – 4000 per year (NTS Date (between 1-JAN and
31-DEC of YTD)

Before being able to create an order the DS, in Italy will need to enter, by selection, certain criteria for processing the order.
 These additional attributes will be the following :
o Sub Type selection of A1 or A2 for A type DS and B1
o Sub Type selection of B2 for B type DS,
o Selection of the order type Regular Sales Order or Event/STS ticket order, based on this the page will display either
YTD total euro’s earned for A1 or B1 DS’s, or YTD Personal Consumption Volume Points (for Orders placed in Italy
ONLY) total for A2 or B2 distributors. The YTD Personal Consumption Volume Points counter should also display for
orders with subtype D2 and E.

Additional Feature as of Now – TBC

. Introduce another monthly threshold limit of 530 Volume points and also per order for the same Distributors types A2, B2, D2 and E.
B B2 USO PERSONALE (Personal Volume Points – 530 per month
Consumption)
C C2 VENDITA A CLIENTE (Resale) Volume Points – 530 per month

D D2 VENDITA A CLIENTE (Resale) Volume Points – 530 per month

E E VENDITA A CLIENTE (Resale) Volume Points – 530 per month