Tax Declaration

Screen management

Entry screen

Notes on the VAT on collections

The specifics related to the management of VAT on collections involve the following particulars:

Principles for the determination of the amounts to be declared

A matching group is a triplet (collective account, business partner, match). It can therefore concern several payments and several invoices.

• by means of the matching group whose matching date falls between the required date range and by means of all the documents that make up the group,
• search, in each matching group of the triggering documents whose due date is < or = to the entered due date,
• determination of the payment amount = sum of the amounts associated with a business partner account (or matchable account) of the triggering documents in the matching group,
• determination of the tax-incl and VAT basis
• search on all the documents of the matching group (irrespective of the document type), lines posted to another account than "not submitted",
• having a tax code 'on collection',
• total by tax code.
• determination of the VAT to be declared = determined basis amounts,
• limited to the payment amount
• minus the VAT amounts already declared (AMTVAT field of the entry line) and the VAT on the debits to be paid
  

If the VAT amount on collections to be declared is less than the VAT amount on collections of the matching group (case of the partial payments), the amounts to be declared are proportionally allocated to each entry of the group being associated with a VAT on collection tax code.

The launch of the VAT on collection declaration process can be carried out :

• in simulation mode in this case, the "Declared VAT" (AMTVAT) fields in the postings file are not updated,
• or in real mode, the "Declared VAT" fields in the postings file are updated

Specific setup

• Discount and VAT on collections
  The discount destination must be set up:
• with a structure <Account=>BP>,
• with "retrieve VAT",
• with a separate document.

The discount document must be posted to a non triggering document type.

The discount accounts must be set up as follows:
665000 :     Discounts granted
                    Submitted – Sales collected
                     With a VAT code on collections
765000:      Discounts obtained
                    Submitted – Purchase deductible
                    With a VAT code on collections

• the entry of the payment must be carried out for the net payment of the discount :
• the discount line must be psoted to the invoice,
• entry with a tax code on collections.

For instance:

Pre-payments and VAT on collection

The document type designed to save the pre-payment posting must be a triggering document. The pre-payment document must be triggering or not.

The pre-payment accounts must be set up as "pre-payment accounts"; they must therefore be different to the customer or supplier control account that must be "not submitted"

 The VAT account to be adjusted must be set up as "not submitted",

The tax codes for the VAT account and the pre-payment account must be set up with VAT on collections

Not managed

• Multi-business partner documents

When an invoice contains several business partners (or equivalent), it is not possible to identify the Ex-tax and VAT amounts associated with each business partner. It is therefore not possible to manage the VAT on collections.
 In the event of a payment document containing several pre-payments (and consequently several BP tax incl. pre-payment lines and several VAY lines), it i not possible to combine a tax incl. line and a VAT line and to generate the VAT on collections.
This may be the case in the event of a single-phase payment transaction with a deposit to bank withgrouping on note.

• Multi-business partner invoices

When an invoice contains several business partners (or equivalent), it is not possible to identify the Ex-tax and VAT amounts associated with each business partner. It is therefore not possible to manage the VAT on collections.

• Doubtful receipts

Following a payment by cheque, the tax is payable on cashing the cheque. In practice, the tax is settled on banking the cheque. If the cheque is not deposited, the collection is not made.

It is during the entry of a bad debt that it is possible to reconsider the VAT that was initially declared.

In this case, the business partner account of the bad debt posting will be matched with the initial payment and the corresponding invoices. During the next VAT declaration it is possible to declare the tax in the reverse sense.

• Posted statements

The posting of an invoice statement involves :

• the entry of a posting (REL) to the debit and credit of the business partner account concerned for the total amount of the statement,
• the matching of all the open items contained in the statement with the credit to the REL posting.

The invoices are then considered as paid by the VAT process.

• Partial payment posted over several invoices

When a partial payment is posted to several invoices, the VAT calculation algorithm does not take into account the amounts posted to each of the invoices : this information is not available in the postings file.

For instance:
         Entry of an invoice of          500 000        103 000           603 000            VAT 20.6%
         Entry of an invoice of        1 000 000          55 000        1 055 000            VAT 5.5%

Partial payment of 542,600 EUR posted with 120,600 EUR to the first invoice and 422,000 EUR to the second invoice, that is :

   on the 1st invoice     100 000.00      20 600.00      120 600

   on the 2nd invoice     400 000.00       22 000.00      422 000

                                                  that is a VAT to be declared of :   42 600.00

VAT declaration on 31/01/00
The payment amount is distributed by the process over the 2 invoices in a proportional fashion which leads to the following VAT to be declared amount :

      FAC-007 :        542 600 * 603/1658 =       197 338.84 that is            33 707.96 of VAT

      FAC-007 :        542 600 * 1,055/1658 =       345,261.16 that is            17,999.40 of VAT

                                                                                                 51 707.36

• Specific rule for the deduction of VAT on authors rights

Specific Buttons

Error messages

The only error messages are the generic ones.

Tables used

Refer to documentation Implementation