This function is exclusive to the VAT framework process.
You can extract values in Simulation or Actual mode.
Simulations can be run for a VAT entity, for all or a single company, or for all or a single site. Values display in the Simulated value column in the VAT to declare and Detail by company grids. Each new simulation overwrites the previous.
Actual extractions can only be run for the VAT entity.
The reference date for VAT declaration extractions and all related processes, including journal entries and automatic journals, is defined by the DCLVATDAT - Date for tax declaration parameter (CPT chapter, VAT group) value. This can be the accounting date or the document date.
The VAT date can be updated in the Journal entries function as long as the journal entry to be updated has not been included in an actual declaration.
If you set up a print code linked to one or more reports for the VAT form, you can select a report from the Print button, List option. This is useful if your legislation requires multiple VAT return reports.
You can create a VAT return and extract values using an offline VAT form.
The VAT framework includes dedicated functions designed to facilitate calculating and validating VAT returns and generating the VAT preparatory report. For some legislations, you can submit directly from the VAT returns function. For specific legislations, there is a preset structure for VAT boxes and tax file generation that conforms to the respective tax laws. There is also a generic VAT declaration that can be customized for legislations not part of the framework.
Refer to the legislation how to guides for specific information.
Within the VAT framework, the company legislation and the VAT declaration process are separate.
Example
A company with a Belgian legislation may need for one of its sites to register for French VAT and to extract VAT on this site according to French fiscal authorities’ rules. You can do this by defining a dedicated VAT setup where the VAT declaration is set to DCLVATFRA and the legislation company is set to BEL.
This setup needs to contain the VAT boxes required by French fiscal authorities according to the 3310-CA3 declaration (as defined in standard setup for DCLVATFRA+FRA) and the corresponding mapping rules (with the document types and tax codes used in the Belgian site). And it has to be run on the VAT entity containing the site to declare in France.
In addition, the standard setup DCLVATBEL+BEL can be run on the VAT entity containing the sites of the Belgian company, except the site to declare in France.
The list of declarations that can take advantage of the VAT framework continues to grow. Additions are mentioned in the Sage X3 Release notes.
If your country/legislation is not yet included in the framework, you can use the Generic VAT declaration (DCLVATGEN) and manually set up VAT boxes and the VAT form.
Legislation presettings are delivered independent of the VAT reporting framework setup. A legislation presetting can include a dedicated VAT box structure, but that does not imply that you can use the remaining functions within the framework.
Except for the VAT boxes function, these functions are exclusive to declarations that are part of the framework. See the respective online help for each function for detailed information.
VAT boxes (not exclusive to the framework)
Use this function to create the VAT box structure for the declaration. If you select DCLVATGEN, you must select a legislation and manually create the required VAT box structure.
For all VAT declarations using the VAT framework. When setting up VAT boxes, the VAT box codes defined here must be the same when setting up the VAT form. This consistency must be respected for the automatic extraction of data for submission in the VAT returns function.
VAT entry groups (framework only)
Use this function to create an entry type group for a given legislation when setting up VAT declarations. In the VAT boxes function, you can use the entry group code for detail VAT boxes on a single line rather than entering multiple lines for detailed entry types. Entry type groups share the same Tax code + Tax management + Tax allocation combination.
VAT entities (framework only)
Use this function to create and manage VAT entities for a single or multiple companies or a single or multiple sites. VAT entities enable you to define distinct VAT returns at the site level.
VAT form (framework only)
Use this function to set up the VAT form for a specific legislation. You will use this form to create VAT returns. You can reuse the same form for different years, different VAT entities, etc. The VAT box codes defined for the VAT form must be consistent with the VAT boxes setup.
You can also use this function to enter a print code that links multiple VAT return reports that you can access from the VAT returns function.
Currently, only DCLVATBRI submits declarations to the British tax authority (HMRC) directly from the VAT returns function. For all other legislations, the VAT returns function extracts the data and generates a file or report that you need to submit manually to the respective tax authority.
VAT returns (framework only)
Use this function to set up and generate the VAT declaration for a VAT entity. You can extract data in simulation or actual mode. In simulation mode, you can extract for one or multiple companies or one or multiple sites. You can also run the preparatory report.
Use this function to extract data for multiple VAT entities in simulation or actual mode.
VATRETURNS (framework only)
This report can be accessed from the VAT returns function for simulated or actual extraction. It replaces the preparatory report functionality in the DCLVATBEL, DCLVATBRI, and DCLVATFRA functions.
Fields
The following fields are present on this tab :
| This field automatically displays the VAT declaration number when you create a new VAT return and cannot be modified. |
| Enter the number for the VAT form created in the VAT form function (GESVEF). Only active forms can be used. |
| This indicates whether the current form is offline or online. |
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| This field displays the current VAT form description and cannot be modified. |
| This field displays the VAT return status:
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Fields
The following fields are present on this tab :
Block number 1
| This field displays the declaration for the current VAT form and cannot be modified. |
| This field displays the legislation for the current VAT form and cannot be modified. |
| Enter the code for an existing VAT entity. |
| This field displays the company code for the Head member. If the Head member is a site, the site code also displays. |
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| This field displays the tax ID for the Head member, if relevant. If the country, such as Belgium, Spain, France, Italy, Poland, or Portugal, has a control script, the format control is enforced on this field or the EU VAT no. field. |
| For the VAT entity, this field displays the EU VAT no. for the Head member and cannot be modified. If the country, such as Belgium, Spain, France, Italy, Poland, or Portugal, has a control script, the format control is enforced on this field or the Company tax ID field. |
| For UK businesses, you can use this field to enter a VAT registration number that is more than nine digits. Note that only the EU VAT no. is used for submission to HMRC. |
| Enter the year for the declaration. When you enter the year, you are prompted to authenticate with HMRC. Click Yes to enter your credentials on the HMRC website, which opens in a new window. After you enter your HMRC User ID and Password and Grant Authority, the new window closes. If you select No and do not authenticate, you cannot complete the VAT return. You cannot modify this field after you create the VAT return. |
| After authenticating with HMRC, click the Calendar icon to select the period for the declaration. In the window that opens, select the line for the desired period. You cannot modify this field after you create the VAT return. |
| Enter a date that reflects the start date for the VAT return. This is not the validity start date for the setup but must fall within the validity time frame for the VAT form. You can modify this date for a declaration that is still In progress. |
| Enter a date related to the Starting declaration date.This is not the validity end date for the setup but must fall within the validity time frame for the VAT form. You can modify this date for a declaration that is still In progress. |
| The VAT return type is automatically determined by the VAT period selection:
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| The period key value is generated automatically when you select the VAT period and cannot be modified. This value is submitted to HMRC. |
| Select this checkbox to view a log file of the submission. |
| Select this checkbox to include off declaration details in the extraction. |
VAT on debit
| This checkbox is selected or not based on the VAT period selection. You can modify this value after you Create the VAT return, but after you Validate, no other modifications are possible. |
| The declaration start and end dates are used to filter the accounting entries by accounting dates or by original document dates, depending on the DCLVATDAT - Date for tax declaration parameter value (CPT chapter, VAT group). |
| The declaration start and end dates are used to filter the accounting entries by accounting dates or by original document dates, depending on the DCLVATDAT - Date for tax declaration parameter value (CPT chapter, VAT group). |
| Select this checkbox to include entries that were not extracted for a previously submitted return and that are prior to the current declaration start date. |
| Enter a date to include unextracted entries from this date forward. This date must be before the declaration start date. |
VAT on payment
| This checkbox is selected or not based on the VAT period selection. You can modify this value after you Create the VAT return, but after you Validate, no other modifications are possible. |
| This field displays the start date based on the VAT period selection. This includes journal entries whose matching dates fall within the matching start and end dates. Journal entries posted on accounts whose Tax management is set to Prepayment account are selected even if the journal entry line is not selected. You can modify this value after you Create the VAT return, but after you Validate, no other modifications are possible. |
| This field displays the end date based on the VAT period selection. This includes journal entries whose matching dates fall within the matching start and end dates. Journal entries posted on accounts whose Tax management is set to Prepayment account are selected even if the journal entry line is not selected. You can modify this value after you Create the VAT return, but after you Validate, no other modifications are possible. |
| This field displays the due date based on the VAT period selection. Journal entries with due dates prior to or equal to this date are extracted. |
| Select this checkbox to restrict the entries that trigger the VAT declaration on payments to subsidiary records exclusively. The process eliminates as "payment" the matched accounting entry lines on the general accounts. For example, for the inter-currency reciprocal accounts. |
Generation criteria
| The current generation type is Actual. You can run a simulation preparatory report in DCLVATBRI to review amounts before you Extract values. |
| In simulation mode only, you can select this checkbox to include all companies. This option does not apply to actual mode because an extraction in actual mode can only be run on the VAT entity. |
| In simulation mode only, you can select this checkbox to include a single company. This option does not apply to actual mode because an extraction in actual mode can only be run on the VAT entity. |
| In simulation mode, you can select this option to include all financial sites in the extraction. In actual mode, you can only run the extraction on the VAT entity. |
| In simulation mode, select a site depending on the VAT entity setup. |
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Presentation
If VAT posting is active for the VAT entity, the fields in this section are available. If not, the Posting status is Not managed and these fields are disabled.
Journal entries for VAT returns are posted using the VAT automatic journal. The journal entries offset the total VAT amount calculated for each company in the return into the Tax to disburse or the Tax credit accounts. The accounts are defined in the Accounting code lines function for site and company entities.
The calculation and posting are made by considering VAT amounts extracted on detail boxes of the VAT return.
For a VAT entity with multiple companies or sites, you need to define the intercompany accounts used for journal entries in the Intercompany accounts mapping function, as well as the reciprocal accounts defined in chart of accounts setup.
If required, manual adjustments can create an additional journal entry line for the Head company of the VAT entity.
To manage adjustments, you need to complete the following:
1. In the VAT form function, you need to select VAT boxes for the VAT due box, which holds the total submitted VAT amount due, and the Deductible VAT box, which holds the total submitted VAT deductible amount. Note: If you do not define these VAT boxes, adjustments are not taken into account and the related VAT adjustment balance is not posted.
2. In the Accounting code lines function, you need to define the adjustment account in the VAT adjustment balance modifier. This can be set at the company and/or the site level.
Fields
The following fields are present on this tab :
| This field displays the posting status: To be posted or Posted. If VAT posting is not managed for the VAT entity, this field displays Not managed and the remaining fields in the VAT posting section are not available. |
| Enter a date to post the VAT journal entry. |
| You can enter a description for your reference. |
| When you select this checkbox and click Post, you see a preview of the posted amounts in a temporary table. The general ledger is not updated. Remember to clear this checkbox to generate the actual VAT journal entries. |
| After posting in actual mode, click this button to view a list of the VAT journal entries. For each line, select Entry from the Action icon to drilldown to the Journal entry function. Note: The VAT adjustment balance is posted if you completed the necessary steps described here. |
Fields
The following fields are present on this tab :
Grid Form
| This field displays the VAT box code defined in the VAT form and cannot be modified. |
| This field displays the VAT box description defined in the VAT form and cannot be modified. |
| This column displays the value to be submitted to HMRC. It automatically includes any amount in the Adjustment column. For VAT boxes B1 to B5, the UK fiscal authority requires that the submitted value is rounded to two decimal places. For VAT boxes B6 to B9, the UK fiscal authority requires that the submitted value is rounded to the lower whole amount. For example, if the Extracted value for B8 is £7,537.86, the Submitted value changes automatically to £7537.00. |
| This column displays the exact amounts from the DCLVATBRI preparatory report run in simulation mode. The decimal amounts are based on the company currency. |
| This column displays any adjustments to the extracted value. The value in this column is automatically added to the Submitted value. The Extracted value does not change. |
| This column displays the simulated VAT amounts based on your extraction criteria. These values are overwritten with each new simulation. |
Block number 2
| This field displays the currency defined for the current VAT form and cannot be modified. |
| The field displays the number of decimals allowed for the current VAT form and cannot be modified. |
| This field displays the due date based on the VAT period selection. Journal entries with due dates prior to or equal to this date are extracted. |
| This field displays the current version number and cannot be modified. The version number increases each time you click Submit. |
| This field displays the most recent submission date. This date automatically changes to the current date when you click Submit. |
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Action icon
Use this action to adjust the extracted value on the line. This opens a new window where you can add one or more adjustments to this VAT box.
Information for the Head member displays by default. You can select another company within the VAT entity to enter adjustments for that company or you can enter adjustments at the Entity level. Each time you enter an adjustment, the Submitted value for the VAT entity is updated in the VAT to declare grid. For the group member, you can see that the Submitted value is updated in the Detail by company grid when that company is selected. The Extracted values do not change.
You can manually enter a value and a comment. The User and Date created fields are entered automatically for each adjustment. Each time you enter an adjustment, the Submitted value is updated accordingly. The Extracted value does not change.
After you Validate the VAT return, you can no longer add, change, or remove adjustments.
After extracting data for a VAT return in actual or simulation mode, you can view the list of documents related to the VAT box. For each document in the Details grid, you can click through to the accounting document.
The grid includes a column that indicates the posting status for each line.
You can refine the results by amounts, entry type, dates, site, etc.
Due to technical limitations, if there are more than 32,000 lines, the Details grid is empty. Use the search criteria to refine the results.
After extracting data for a VAT return in actual or simulation mode, you can view the list of documents related to the VAT box. For each document in the Details grid, you can click through to the accounting document.
You can refine the results by amounts, entry type, dates, site, etc.
Due to technical limitations, if there are more than 32,000 lines, the Details grid is empty. Use the search criteria to refine the results.
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Fields
The following fields are present on this tab :
Block number 1
| Select a VAT box number to see only amounts for that VAT box. You can also enter a company in the Company field to see those VAT box amounts for that company. You can leave this field empty to see all the VAT box amounts for a selected company. Or, enter a VAT box and leave the Company field empty to see the VAT box values for each company. By default, information for the Head company displays. |
| Select a company to view all VAT box amounts for that company. If you also enter a VAT box number in the VAT box field, the grid only shows values for that VAT box. You can leave this field empty and only enter a VAT box number to see the VAT box values for each company.By default, information for the Head member displays. |
| Click this icon to view the member sites for this VAT entity. |
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| The fields in this grid display the VAT to declare information for the selected company and/or selected VAT box combination. |
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Action icon
After extracting data for a VAT return in actual or simulation mode, you can view the list of documents related to the VAT box. For each document in the Details grid, you can click through to the accounting document.
The grid includes a column that indicates the posting status for each line.
You can refine the results by amounts, entry type, dates, site, etc.
Due to technical limitations, if there are more than 32,000 lines, the Details grid is empty. Use the search criteria to refine the results.
After extracting data for a VAT return in actual or simulation mode, you can view the list of documents related to the VAT box. For each document in the Details grid, you can click through to the accounting document.
You can refine the results by amounts, entry type, dates, site, etc.
Due to technical limitations, if there are more than 32,000 lines, the Details grid is empty. Use the search criteria to refine the results.
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Click this action to review the VAT form settings for this declaration. Because there is a declaration for the form, you cannot modify it. |
For British declarations only (DCLVATBRI) Click this action to view confirmation that you have submitted your declaration or to view errors if HMRC rejected the submission. |
This action is available to post an automatic journal entry for a VAT return if you have completed the required setup for the VAT entity. After extracting in actual mode and validating the return, use this action to generate journal entries for the VAT return that offset the total VAT amount calculated for each company into Tax to disburse or Tax credit accounts. This creates a VAT line with the amount for each invoice. For the Head member, the total amounts for the tax accounts are posted. For member companies, an intercompany line is generated that initiates the transfer to the net VAT. If there are any errors, all entries are rolled back and no journal entries are created. If you have selected the Simulation checkbox, when you click Post, you can see a preview of the entries to be generated in a temporary table. No entries are created in the general ledger and the VAT journal entries button is disabled. |
For Canadian declarations
When the VAT return status is Completed or Validated, click this function to review the submission details such as TAXUID, document number, accounting date and tax amount.
For Canadian declarations
You can select this function to generate a log file that displays the following data for online submission mapping: