Define VAT Exceptions

This document explains how you can create a unique lookup table to automate both the retrieval of VAT exemption texts and the replacements of VAT codes.

Outcome

Lookup tables with definition of VAT exemption texts per language and replacement VAT codes are created for the scenarios VAT exceptions are needed, based on the triggering factors selected by the company. The four types of tables consists of up to ten priority levels, each level with up to four control objects that create the matching conditions for the lookup. The most complex exception conditions for each type of VAT exceptions have the highest priority.

Before you start

Follow These Steps

Select Control Objects

  1. Start 'Available Object Control Parameters. Open' (CMS016).

  2. For object 'Tax exemption texts', select option 11='Object table – detail lines' to display 'Generic Object Control Table. Open' (CMS017/B).

  3. In the Program field, enter 'TXS020' and click Create.

  4. On the E panel, enter the division and one of the following numbers in the 'Transaction type' field:

    • 1 = Table for retrieval of VAT exemption texts
    • 2 = Table for replacement of VAT codes on external sales.
    • 3 = Table for replacement of VAT codes on purchases.
    • 4 = Table for replacement of VAT codes on internal sales.
  5. In the table, enter up to four control objects to apply for the line - such as Customer and VAT code - with the lowest sequence number and then continue with the other lines, if needed. End by pressing Enter.

    Define Rules

  6. Start 'VAT Exception. Open' (TXS020) in one of the following ways:

    • Press Enter in (CMS017/E).
    • In (CMS017/B), select option 11 for the control object table.
    • Start (TXS020) from the menu.

      If you start (TXS020) from (CMS017) and the control object table selected had start value 1, (TXS020/B) is displayed with the view for VAT exemption texts by default. If the table had start value 2, the view for defining replacement of VAT codes on external sales is displayed by default.

  7. In (TXS020/B), select the category for which to define VAT exceptions in the 'Text/VAT code' field if you started the program from the menu.

  8. Select one of priorities 1 to 10 and click Apply.

    The priority refers to internal order of a line in the control object table. For example, if the three first lines in the table have sequence numbers 10, 15 and 20 respectively, they correspond to priorities 1, 2 and 3 respectively in (TXS020).

    When clicking Apply, fields are displayed in (TXS020/B) based on the control objects in the selected line in the control object table such as Customer and VAT code.

  9. Select one of the following alternatives:

    • To define VAT exemption texts, go to step 10.
    • To define replacement of VAT codes, go to step 16.

    Define VAT Exemption Texts

  10. In (TXS020/B), enter the control object-based values displayed.

  11. If you want the rule to be limited in time, enter a valid date range. Click Create.

    Important: You cannot change the date range once it is set. If you later want to adjust the date range, you copy the rule if the date ranges do not overlap, adjust the date range in the new rule and then delete the old rule. If the date ranges for the old and new VAT exceptions overlap, first delete the old one and then create a new one. Note that if you do not enter a date range for the VAT exception, it will be used as a general VAT exception unlimited in time, and no other VAT exceptions can be entered.

  12. On the E panel, press Enter to confirm the selection.

  13. On the text panel displayed (function program CRS980), enter text block ID TAXEXEMPT and the language for which the VAT exemption text is applicable. Click Create.

  14. In the text box displayed, enter the VAT exemption text. Click Next to return to the previous text panel, where you can add new texts for other languages, always with the same text block ID TAXEXEMPT.

  15. Press F3 to finish.

    Define Replacement of VAT Codes

  16. In (TXS020/B), enter the original VAT code and any other control object-based values displayed.

  17. If you want the rule to be limited in time, enter a valid date range. Otherwise, leave the From and To date fields blank. Click Create.

    The date range, once set, cannot be changed. If you later want to adjust the date range, you must copy the rule, adjust the date range in the new rule and then delete the old rule.

  18. On the E panel, enter the replacement VAT code. Press Enter.

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