Setting up VAT Tax Line Numbers

Each year, companies in some countries, for example, Germany, must submit a VAT advance tax return to the fiscal authority. The format of this return changes from year to year.

Use the Tax Line Numbers form to define the line numbers on the tax return for a specific year. Map each line number to the tax system and tax code that are used to derive the amount that goes in that line of the report.

The VAT Report output can then be sorted by Line Number, and you can use the subtotals for each line number as the amounts to enter for those lines on the VAT advance tax return.

To set up the VAT tax line numbers:

On the Tax Line Numbers form, specify this information:

Line Number

Specify the line number from the VAT advance tax return document. These are the numbered lines on the left side of the tax document. Specify only line numbers where an amount must be entered.

Description

Specify the description for that line from the tax document.

Effect Year

Specify the effective year for the tax document that uses these line numbers.

Tax Type

Specify the tax type for the line number: S (Sales) or P (Purchase).

Number for Tax Basis

If this line number includes an amount entry box in the first column on the tax document, specify the box number here.

Number for Tax

If this line number displays an amount entry box in the second column on the tax document, specify the box number here.

Tax System

Specify the tax system associated with the line number. If there is only one tax system, this field is disabled.

Tax Code

Specify the tax code associated with the line number. For example, if the Tax Type is set to P, specify the tax code that is defined for purchasing transactions.

If the same tax code is used for both Tax Type S and P tax lines, the tax type for a particular transaction is determined by the tax account that was used for the transaction. (The tax account is defined in the Tax Code.) For example, if a transaction uses the tax account defined as the A/R Tax Account for the tax code, the transaction is included in a tax line with Tax Type S. If the transaction uses the tax account defined as the A/P Tax Account, the transaction is included in a tax line with Tax Type P. This situation occurs in the EU.
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