Once the prize pool at stake and its value have been defined, the Promoter must lend a deposit equal to 100% of the value of the declared prize fund in regulation (net of VAT) in favor of the Ministry of Economic Development.

The deposit can be:

The deposit, complete with certified signatures and a 16.00 euro stamp, must be registered with MIMIT. The deposit must expire 1 year after the end of the event, including the date of assignment and any recovery drawings.

After drafting the regulations and providing the deposit, it is necessary to forward the communication of the competition to the Ministry of Enterprises and Made in Italy (CO/1).

The communication must be carried out at least 15 days before the start of the competition At prizes and exclusively online through the PREMA system which can be accessed via CNS or Smart Card.

In the communication to MIMIT, the scans of the regulation and the security, both digitally signed, must also be attached.

The award of prizes may be simultaneous with participation through a certified software (such as WINK), or deferred.

In the first case, you are choosing an instant win mechanism, which with a few simple steps you can program on WINK. In the second case, the awards will be awarded in the presence of a notary or a Chamber Official, to whom you will submit the file with the list of all the participants, which you can download from WINK in one click.

If you are using software, you must have a appraisal of its operation by the company that prepared it, together with the personal document of the person who signs this declaration; using WINK you will receive the complete documentation in a couple of days, already in the phase before the start of the event: in this step our team of experts will verify that the mechanics are perfectly legal and that it complies with all legal obligations, protecting your initiative 100%.

The organization of a prize competition involves a series of tax obligations for the promoting company, which are important to take into account right from the budgeting phase.

The main one is theVAT deductibility on the purchase invoices for the prizes up for grabs (whether they are products or services). Consequently, the VAT not deducted becomes a real (deductible) cost borne by the Promoter; the amount of the tax burden will depend on the VAT rate of the product or service offered.

For premium products or services that are not subject to VAT, the promoting company must pay a replacement tax equal to 20% of the purchase price.

This group includes the following products and services:

The tax is not due, as a doubling of the tax would occur, in the following cases:

In addition, in prize competitions, a 25% personal income tax withholding must be applied to the value of each prize paid by the winner. In order not to frustrate the appeal of the prize at stake and therefore of the initiative itself, it is a practice for the organizing company to renounce the right to revoke the withholding tax (Art.30 Presidential Decree no. 600 of 29.9.1973) in favor of the winners, making this waiver explicit in the Regulations.

In this way, the Promoting Subject bears the burden ofPersonal income tax of 25% on the total value of the prize fund excluding VAT (which constitutes an indeductible burden). This tax must be paid by the promoting company no later than the 16th of the month following the award of the prize, using the F24 model.

If the prize at stake is produced or marketed by the promoting company, the deduction adjustment must be made, based on the original purchase invoice or on the market value of the product or service. Alternatively, the promoter may issue a self-invoice for the products or services offered.

In the event that an income relationship exists between the organizing company and the winner (e.g. employees, agents, intermediaries, self-employed proxies, etc.), it is mandatory to carry out retaliation; in addition, ordinary taxation prevails, so the prize constitutes income in kind.

At the end of the participation period, in the presence of the notary or the Chamber of Deputies, the final drawing is carried out and/or the winnings awarded through software are verified, and the report of the award of the prizes is drawn up.

The delivery of the prizes must comply with the provisions of the Competition Rules, and in any case take place within 180 days from the recording of the assignment. It is necessary to keep the transport documents certifying the delivery of the prizes and/or the acceptance releases signed by each winner, as they will be required at the closing of the competition.

Any unsolicited or unawarded prizes must be donated to the non-profit organization indicated in the regulations (while those refused remain the property of the promoting company).

Once all the prizes have been delivered, we proceed with the closing report (always in the presence of a Notary or Chamber Official), which will be sent to MIMIT as an attachment to the closing communication of the competition through the PREMA system.
At this point, the guarantee may be released.