VAT Reporting for the UK

Transcription

1 VAT Reporting for the UK ERP CLOUD Fusion Financials for EMEA Table of Contents 1. Purpose of the document Assumptions and Prerequisites Feature Specific Setup... 3 Legal Reporting Unit Tax Profile Registration... 3 Customer Party Tax Profile Registration... 5 Taxes... 6 Tax Reporting Types and Codes... 6 Tax Status... 8 Tax Determining Factors... 9 Tax Status Rules Transaction Entry in Fusion Receivables Reporting Report Submision Creating a csv file Reviewing the pdf Output Appendix

2 1. Purpose of the document This document explains the implementation and usage guidelines for the Reverse Charge Sales Listing Report for UK, using an end-to-end flow example. Details provided include pre-requisite setup, important transaction entry aspects, and report output details. The report provides a record of UK sales for the high value electronic goods subject to the reverse tax charge reported to HMRC (HM Revenue & Customs). In particular, the specified goods to which the reverse charge applies are : Mobile telephones Integrated circuit devices, such as microprocessors and central processing units, in a state prior to integration into end user products Emissions allowances, emissions reduction units and emissions reduction certificates The reverse charge only applies to the sale and purchase of specified goods and services: Between UK tax registered organizations For goods, where the VAT exclusive value of the supply is above the 5, threshold, and Where the goods and services are bought and sold for business use The Reverse Charge Sales Listing Report for UK considers the sales side only. It is the responsibility of the customer, rather than the supplier, to account to HM Revenue and Customs (HMRC) for VAT on supplies of the specified goods or services. Further details can be found on the HMRC web site. Refer to the appendix. 2. Assumptions and Prerequisites In this document, the following entities are assumed to have already been set up : Data Security Geographies Enterprise Structure Tax Regime to Rate setup Tax Party Profiles Tax Rules Customers Common Options for Payables and Receivables Receipt Classes and Methods It is recommended that the Implementation Project is complete for your organization before commencing the Feature Specific Setup outlined below. If you require further details, refer to the Appendix. 2

3 3. Feature Specific Setup Setup the following, prior to running the Reverse Charge Sales Listing Report for UK report. Legal Reporting Unit Tax Profile Registration The Legal Reporting Unit tax profile needs to be setup as Self Assessment, so that the tax is calculated correctly for UK Reverse Charges. Register the Legal Reporting Unit tax profile for Self Assessment on the Tax Registration : Task name: Manage Party Tax Profiles Navigation : Navigator > Setup and Maintenance -> Manage Party Tax Profiles Search For : Legal Reporting Unit Tax Profiles Search for the specific Legal Reporting Unit value that corresponds to the Legal Entity used on Fusion Receivables invoices for which self-assessed tax is to be applied. Review the Tax Registrations Tab on the existing Legal Reporting Unit Tax Profile selected. Create a tax registration for your UK tax regime if you have not done so already. 3

4 Once the tax registration record has been defined, place your cursor on the Tax Regime Code for which self-assessed tax is desired. Then, select View Registration Details. In the Edit Tax Registration page, confirm the Set as self-assessment (reverse charge) Checkbox is checked 4

5 Customer Party Tax Profile Registration Reverse Charges for the UK require customers to be registered. The registration numbers are then displayed in the report. Create customers and ensure the Registration Number is entered for the third party site tax profile. Task name: Manage Party Tax Profiles Navigation : Navigator > Setup and Maintenance -> Manage Party Tax Profiles 5

6 Taxes Setup the VAT tax for the UK Tax Regime. This is needed for the tax status code setup. Task name: Manage Taxes Navigation : Navigator > Setup and Maintenance -> Manage Taxes Tax GB VAT Tax Rate - Customer to pay VAT to HMRC at the rate of 20% of the VAT exclusive selling price for reverse charge goods. Tax Reporting Types and Codes Tax Reporting Types and codes are required to identify your reverse charge transactions. The report will then display the transactions for your Tax Reporting Type and Code combination. Task name: Manage Tax Reporting Types Navigation : Navigator > Setup and Maintenance -> Manage Tax Reporting Types Enable the Tax status reporting type use Assign the Tax Reporting Code to the Tax Reporting Type 6

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8 Tax Status The tax status is used to represent the VAT for the UK tax regime. It is also necessary to attach the tax reporting codes for the reverse charges, so that the transactions can easily be identified for reporting purposes. Task name: Manage Tax Statuses Navigation : Navigator > Setup and Maintenance -> Manage Tax Statuses Tax Status Code GB_UK_MTIC_ZERO_RATE Attach the Reporting Type Code to the GB UK Missing Trader Intra community Zero Rate with Reverse Charge 8

9 Tax Determining Factors The Tax Determining factors are required to automatically apply the correct tax rule for the Receivables transactions. This will ensure that the transactions are identified as being applicable to Reverse Charges Task name: Manage Determining Factor Sets Navigation : Navigator > Setup and Maintenance -> Manage Determining Factor Sets Determining Factor Set Code GBMTIC NEW ZERO NO INV Configure the tax determining factors and assign the Reverse Charge tax combinations when the following are true: Ship to and Ship from is located in the UK Defined Product Category is added to Receivables transaction The customer is registered within the Party Tax Profile The transaction contains the correct Business Transaction Category Screens below demonstrate the configuration in the Fusion Financials for the determining factors: Navigation: Setup and Maintenance > Manage Tax Condition Sets Condition Set Code - GBMTIC NEW ZERO NO INV 9

10 Tax Status Rules The Tax Status Rules are required to attach the tax condition set for rule derivation. Setup a tax status rule and attach the tax condition set. Navigation : Setup and Maintenance > Manage Tax Rules Rule Code - GBMTIC ZERO RATE NEW AR 10

11 4. Transaction Entry in Fusion Receivables Enter Fusion Receivables transactions, paying particular attention to the following. Task name: Create Transaction Navigation : Navigator > Receivables Billing -> Create Transaction Create invoices for your Business Unit, ensuring you: Select your Legal Entity in the Miscellaneous tab. Enter the First-Party Tax Registration Number The Product Category and Transaction Business Category are selected Complete the invoice. Transactions entered in Fusion Receivables will be represented in the report output with the following characteristics : Rounded to nearest Pound Credit transactions are added to the month of the transaction date 11

12 Discounts are applied to transaction when the receipt is entered 5. Reporting Report Submision The Process for submitting the Reverse Charge Sales Listing Report for UK is as follows: Navigation : Navigator > Tools -> Scheduled Processes Schedule the process Reverse Charge Sales Listing Report for UK The following are mandatory parameters: Legal Entity Tax Registration Number Tax Reporting Type Tax Reporting Code Optionally, enter the Tax Point Date range for the dates that you want to report on. It is usual to run the report for a calendar year. To run for a year: Enter 1 Jan YY for the From Tax Point Date Enter 31 Dec YY for the To Tax Point Date 12

13 Creating a csv file HRMC state that you may either enter the information directly on-line or you can upload a comma separated values (CSV) file. The report output can be created in.csv format. To achieve this : Click the Advanced button Select the Output tab Select the U.K. Reverse Charge Sales List Report CSV Layout. Select the Format of Text Submit the Report Save the output file as a csv file. In the example above, the Invoice Amount of 11, is highlighted. To verify the content, submit the report using pdf or html format, using the U.K. Reverse Charge Sales List Report Layout. 13

14 Reviewing the pdf Output The report output in pdf format consists of : A cover page, showing the report parameters The listing of the invoices for each customer and period. In the example above, the Invoice Amount of 11, is highlighted. The report declares the whole pound amount only, and you rounds to the nearest pound. 14

15 6. Appendix Here are some useful information sources to assist with the implementation : Reverse Charges HMRC The web site provide details on the reverse charge process. Oracle Enterprise Repository (Financial Report Listing) The OER provides content relating to the report parameters and sample report output. Log in as guest from OER first. Oracle Financials Cloud Release 9 (Get Started) The web site contains links to subscriptions, understanding Oracle Financials Cloud and Implementation advice. Oracle Fusion Financials Cloud Release 9 What s New This document contains additional information relating to this feature and other Fusion Financials features and capabilities. Enterprise Resource Planning Release Readiness for Financials Release 9 The web site contains links to spotlights, release content documents, product documentation and training. Copyright 2014, Oracle and/or its affiliates. All rights reserved. This document is provided for information purposes only, and the contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document, and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission. Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners. Intel and Intel Xeon are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks are used under license and are trademarks or registered trademarks of SPARC International, Inc. AMD, Opteron, the AMD logo, and the AMD Opteron logo are trademarks or registered trademarks of Advanced Micro Devices. UNIX is a registered trademark of The Open Group