VAT Reporting for Spain

Transcription

1 ERP CLOUD VAT Reporting for Spain Fusion Financials for EMEA Table of Contents 1. Purpose of the document 3 2. Common Setup 3 Implementation 3 Tax Reporting Entities 5 Review Tax Rates 7 Review/Enter Offset Tax Setup 8 Tax Reporting Types and Codes 9 Third Party Tax Setup Payables and Receivables Transactions with Tax 17 Payables 17 Receivables Select Transactions for Tax Reporting Submitting the Reports 23 Sample Report Outputs 25 Input VAT Journal Report for Spain 25 VAT Inter-EU Reports for Spain 26 Output VAT Journal Report for Spain Finalize Transactions for Tax Reporting 28 1

2 Review periods statuses 30 Adjustments in a finally closed period Reporting of Interim Tax 33 2

3 1. Purpose of the document This document explains the implementation and usage guidelines for the following reports: Input VAT Journal Report for Spain VAT Inter-EU Invoice Journal Report for Spain VAT Inter-EU Invoice Format Report for Spain Output VAT Journal Report for Spain The document explains the pre-requisite setup, important transaction entry aspects, tax data preparation prior to reporting, report output details and the business flow. 2. Common Setup Implementation We will use a sample implementation as illustrated below: Implementation consists of a single primary ledger, 2 legal entities and their respective business units associated to this ledger. The examples in this document are based on this setup unless specified otherwise. ES VAT regime tax configuration will be referenced throughout this document. You can alternatively use any company structure as long as the prerequisite setup exists like: ledger, legal entities and business units, first party tax configurations, third parties with complete tax profiles and data security. 3

4 Legal Reporting Unit Tax Registrations Complete tax profile setups for the legal reporting units. Task name: Manage Party Tax Profiles Navigation : Navigator > Setup and Maintenance -> Manage Party Tax Profiles LE 1/LRU 1: ES Vision SEQ LE1 - Spain LE 2/LRU 2: ES Vision SEQ LE2 Spain Create one tax profile for each legal reporting unit, one profile with offset tax and the other with self assessment. You will find it convenient to have this variation in producing data for Inter-EU reports. These reports can support both offset tax and self assessed-tax. LRU 1 4

5 LRU 2 Tax Reporting Entities Enable tax reporting configuration by checking the option at regime level Task name: Manage Tax Regimes Navigation : Navigator > Setup and Maintenance -> Manage Tax Regimes Use tax reporting configuration flag should be checked to allow entry of tax reporting configuration details during tax registration setup for legal reporting units for the regime. 5

6 Tax Reporting Entities Task name: Manage Party Tax Profiles Navigation : Navigator > Setup and Maintenance -> Manage Party Tax Profiles Define tax reporting entities for the legal reporting units. 6

7 Review Tax Rates Task name: Manage Tax Rates and Tax Recovery Rates Navigation : Navigator > Setup and Maintenance -> Manage Tax Rates and Tax Recovery Rates Use existing tax rates or add new tax rates. Setup for ES VAT STANDARD RATE and ES VAT STANDARD DEF RATE are shown below as examples. These tax rates have tax point basis, Invoice and Payment respectively. In the sample test cases you will also see ES VAT REDUCED RATE 1 and ES VAT REDUCED RATE 2. These tax rates have tax point basis Invoice. 7

8 Review/Enter Offset Tax Setup Offset tax rates are defined and are associated to standard tax rates as shown below: 8

9 Tax Reporting Types and Codes Associate Tax Reporting Type/Code directly to different tax entities (Tax Rate, Tax Status, etc.) or to applicable Tax Rule Results (Tax Rate Determination Rule, Tax Status Determination Rule, etc), so that when these rules are triggered the relevant transaction would be associated with these tax reporting codes. Usage of multiple reporting codes may cause the same transaction to be classified with more than one reporting code. EMEA_VAT_REPORTING_TYPE is a predefined tax reporting type with commonly used tax reporting codes like VAT. You can conveniently use these codes without additional setup. Add new tax reporting types and codes if necessary. 9

10 Review or add Tax Reporting Type/Code Assignments: Here, the assignments are at Tax level, which will apply to all rates that are associated to the tax code. Enter the above associations if not already entered. Define new tax reporting types and codes and assign to your transactions. In the example below, we are creating a new tax reporting type with three codes and associating these codes to three respective tax rates. 10

11 Create a New Reporting Type and Associate at Tax Rate level Task name: Manage Tax Reporting Types Navigation : Navigator > Setup and Maintenance -> Manage Tax Reporting Types 11

12 12

13 Third Party Tax Setup Task name: Manage Party Tax Profiles Navigation : Navigator > Setup and Maintenance -> Manage Party Tax Profiles Set up third parties with correct tax registrations, which allows tax to be correctly applied to Payables and Receivables transactions and VAT reports for Spain to identify and report these transactions. Sample setups are shown for various third parties. (1) Suppliers in Spain 13

14 (2) Suppliers in EU Countries a. Offset Tax applies 14

15 b. Self-Assessment applies 15

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17 3. Payables and Receivables Transactions with Tax Payables Task name: Create Invoice Navigation : Navigator > Payables Invoices -> Create Invoice Invoices with Tax Point Basis : Invoice or Accounting 17

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19 Invoice with Offset Tax Rate Invoice with Self assessment 19

20 Receivables Task name: Create Transaction Navigation : Navigator > Receivables Billing -> Create Transaction Transactions with Standard Tax Rates Transactions with Deferred Tax Rates (Tax Point Basis: Payment) (Please also see item 14) 20

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22 4. Select Transactions for Tax Reporting After entering and accounting AP and AR transactions, Select Transactions for Tax Reporting to prepare tax records for VAT reporting. Select "Legal Entity" to report data based on all transactions associated with that legal entity. Use "Ledger' to report data based on internal accounting which can span across legal entities. "Legal Entity" is the standard. In Tax Registration Number parameter, tax reporting entities (a concatenation of the tax registration number, legal entity and tax regime) are available. You can run the process for any tax calendar period at a time. Source can be selected as Input tax, Output tax or both. Navigation: Navigator > Tools -> Scheduled Processes Selection process will select following transactions: Accounted transactions with standard tax (Tax Point Basis: Accounting or Invoice) that have accounting dates in the period for which the process is submitted for. Accounted transactions with deferred tax (Tax Point Basis: Payment) that have been fully or partially paid as of the period for which the process is submitted for. For partial payments, only paid portions of the amounts are printed. For the transactions to be printed, payments must also be accounted. Transactions with deferred tax are printed on the Interim Tax Register. Caution: You must start with first tax calendar period. This can be a period without any tax transactions but you must make sure there is no taxable activity prior to this period. For tax reporting to reflect correct tax activity for any period range selected, the initial tax period must be finally closed. Please refer to Section 6 for details of final processing. 22

23 5. Submitting the Reports Navigation: Navigator > Tools -> Scheduled Processes Run VAT Reports for Spain: Input VAT Journal Report for Spain VAT Inter-EU Invoice Journal Report for Spain VAT Inter-EU Invoice Format Report for Spain Output VAT Journal Report for Spain A sample run is shown below: Parameters are similar for all reports with one exception: Register Type. Register Type parameter is available for the following reports only: Input VAT Journal Report for Spain Output VAT Journal Report for Spain 23

24 Submit the report for Jan-10 and Tax Register : Use Enable reporting sequence parameter to print sequence numbers for each report line. If you select No, no numbers will be printed. If you select Yes, all report lines will be printed with sequence numbers starting from the value you enter in Start Invoice Sequence. 24

25 Sample Report Outputs Input VAT Journal Report for Spain 25

26 VAT Inter-EU Reports for Spain 26

27 Output VAT Journal Report for Spain 27

28 6. Finalize Transactions for Tax Reporting Submitting Final process is necessary when tax reporting for a period is finalized. You should avoid transactional tax changes in a finally closed tax reporting period. When it is time to close the period for tax reporting follow the steps below: For example: We want to close JAN-10 for any input and output tax changes for LE2. 1. Run Select Transactions for Tax Reporting for the period (as explained in item 10 above) Caution: For final closing of your first (initial) tax period: Ensure you select the correct Reporting Level. You should not change the level you select for your initial final closing. If your initial final closing level is legal entity, you will be closing your subsequent periods by legal entity as well. 2. Optionally run Input VAT Journal for Spain and Output VAT Journal for Spain if a final control is needed. 3. Submit Finalize Transactions for Tax Reporting for the period and Tax Reporting Entity. 28

29 Once this process is successfully completed it is not possi ble to run selection process for the same entity and period. The process will error. It is possible to close period for tax reporting for either one of input or output tax at a time as well. For example we can close FEB-10 for output tax only. 29

30 Review periods statuses Navigation: Navigator > General Accounting -> Financial Reporting Center -> Transaction Tax Report History Using Transaction Tax Report History UI you can do the following for the given reporting entity and period: Review the period(s) for which the Final Process has already been run Review the report and tax register finally reported Reprint finally reported reports 30

31 Adjustments in a finally closed period If users need to enter tax transactions in a period that is finally closed and reported, these transactions can only be reported in the next tax period that is not finally closed. An example transaction process after final closing: Please note that the corresponding General Ledger accounting period may or may not be closed. Run selection process for MAR-10 (next period which is not finally closed) 31

32 Output VAT Journal for Spain: 32

33 7. Reporting of Interim Tax Interim tax reporting does not require selection process. The following report can be submitted for any reporting entity and a tax calendar period to report tax at interim status. Very common case is the transaction with deferred tax rate that is not paid or partially paid. 33

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