Online VAT Reporting

Online VAT reporting can be used to perform the following:

There are two different processes available for online VAT reporting:

This document explains how to:

Outcome

For a detailed description of the outcome, see the related documents.

Common starting conditions

Settings specific to online VAT reporting

Limitations for online VAT reporting

Workflow

The workflow for the online VAT report process is illustrated in the following diagram:

Follow these steps for the automatic process

  1. Initiate automatic online VAT report

    The first time you run an automatic online VAT report or when the selection criteria needs to be changed, you begin by creating start values for the online VAT report in 'Online VAT Report. Create' (TXS002). The field 'Report Process' must be set to 0-Automatic. Also specify the header information for the MI transaction 'GetHeadInfo'.

    VAT transactions are selected based on these search paths and priorities:

    • Selected country code
    • Selected VAT date limits.
    • Selected VAT report template. Transactions that match the selected VAT report template are included. Note that the VAT report template must contain:
      • Lines in 'VAT Report Template. Connect Lines' (TXS008).
      • Columns in 'VAT Report Template. Connect Columns' (TXS006).
      • Key fields, alpha-numeric, numeric, and date fields in 'VAT Report Template. Connect User-Defined Template' (TXS004).
    • Transactions are selected that do not have:
      • VAT reported status 9 (transaction already VAT reported).
      • Field 'Hold' (UDBL) enabled (transaction is on hold and should not be VAT reported).
      • Electronic VAT report status 20 (transaction included in an online VAT report).
      • Electronic VAT report status 90 (transaction already VAT reported)

      The status for each transaction is displayed in 'General Ledger. Display Transactions' (GLS211/G).

    • The information specified for inclusion in the report header. If a fiscal representative is defined for the base country in 'Fiscal Representation. Open' (TXS030), most of the values proposed are retrieved from the internal supplier selected for the fiscal representative.
  2. Send an automatic online report

    Once the selection criteria have been specified in (TXS002), the online VAT report should be scheduled to run automatically in the job scheduler.

    Online VAT reports should be scheduled to report both not yet VAT reported transactions and corrective reports. The corrective report is created when the field 'Corrective report' is enabled on (TXS002/E).

    The online VAT report is automatically submitted to the tax authorities from the job scheduler and the transactions included in the report are updated with electronic VAT report status 20 (transaction included in an online VAT report) to ensure that the transactions are not included in another report.

    A field is displayed in (TXS100) to indicate if a VAT report is a first or a corrective report.

  3. Resend a VAT report (optional)

    By selecting related option 23='Resend Online Report' in (TXS100), the report can be resubmitted to the tax authorities in case something went wrong in the original transmission. This step is optional.

  4. Manage response

    A response is received from the tax authorities to indicate if an online VAT report has been accepted, rejected, or partly accepted.

    The transactions included in an accepted online VAT report are automatically tagged as VAT reported in the General Ledger and labeled with additional information number 029 (electronic VAT report number). The online VAT report receives status 'Proposal is confirmed' in (TXS100).

    The transactions included in a rejected or partly accepted online VAT report can be reviewed in the subprogram (TXS118), where the status and error code for each transaction can be reviewed. The error code is returned from the tax authorities and the description of the error code can be found in the documentation provided by the tax authorities.

    A rejected online VAT report contains only rejected transactions while a partly accepted report contains a mixture of accepted, rejected, and transactions accepted with an error. All transactions with an error code must be corrected before the VAT reporting can be completed.

    A rejected online VAT report receives status 'Proposal is rejected' in (TXS100), and a partly accepted online VAT report receives status 'Partly accepted'.

  5. Review and correct transactions with errors

    By selecting a line in (TXS118), you can drill down to 'VAT Run. Open User-Defined Details' (TXS119) where the detailed transactions connected to the VAT report line are displayed. By selecting a detailed transaction in the table, you can drill down directly to the General Ledger and correct any VAT-related values that do not affect the recorded VAT amount in 'General Ledger. Display Transactions' (GLS211/G).

    Corrections are usually only made for manually entered VAT and transactions from scanned invoices. Changing the VAT code or VAT rate in (GLS211/G) results in an update to the calculated VAT, depending on the VAT account type, however, the recorded VAT (amount booked in the General Ledger) is not automatically adjusted.

    To correct the recorded VAT amount for a transaction, reverse the entire voucher, as described in Reverse Voucher, or specific accounting lines, as described in Create Corrective Voucher in the General Ledger, and enter the voucher again.

  6. Hold and release transactions

    By selecting related option 7='Hold', a transaction in (TXS118) can be stopped from being VAT reported. The transactions in the General Ledger connected to the transaction in (TXS118) are labeled as 'Hold' in (GLS211/G).

    By selecting related option 6='Release', a transaction in (TXS118) can be released and included in an online VAT report. It is also possible to hold and release transactions in (GLS211/G). Use related option 7='Change VAT info' and check or uncheck the field 'Hold'.

    Note:  To avoid errors in the VAT report it is important to update all transactions in a voucher related to a transaction in (TXS118).
  7. Release transactions accepted with an error and rejected transactions for VAT reporting

    Select related option 21='Cancel online report' in (TXS100) when all transactions in an online VAT report with an error code have been corrected.

    Transactions with status 20='Rejected' are updated with electronic VAT report status 'blank' (Not VAT reported), so the transactions can be included in the next online VAT report.

    Transactions with status 30='Accepted' with errors are updated with electronic VAT report status 01 (Accepted with errors in an online VAT report), so that the transactions can be included in the next corrective online VAT report.

    By selecting related option 22='Release for online VAT reporting' on a transaction in 'Voucher. Display' (GLS200/B), all transactions on the voucher are updated with electronic VAT report status 01 so that the transactions can be included in the next corrective online VAT report. This can only be done on a voucher where at least one transaction has electronic VAT report status 90 (transaction already VAT reported) and no transaction has status 20 (transaction included in an online VAT report).

Follow these steps for the manual process

  1. Initiate manual online VAT report

    The first time you run a manual online VAT report or when the selection criteria needs to be changed, you begin by creating start values for the online VAT report in 'Online VAT Report. Create' (TXS002). The field 'Report process' must be set to 1-Manual. Also specify the header information needed for the MI transaction 'GetHeadInfo'.

    VAT transactions are selected based on these search paths and priorities:

    • Selected country code.
    • Selected VAT date limits.
    • Selected VAT report template. Transactions that match the selected VAT report template are included. Note that the VAT report template must contain:
      • Lines in 'VAT Report Template. Connect Lines' (TXS008).
      • Columns in 'VAT Report Template. Connect Columns' (TXS006).
      • Key fields, alphanumeric, numeric, and date fields in 'VAT Report Template. Connect User Defined Template' (TXS004).
    • Transactions are selected that do not have:
      • VAT reported status 9 - transaction already VAT reported.
      • Field 'Hold' (UDBL) enabled - transaction is on hold and should not be VAT reported.
      • Electronic VAT report status 20 - transaction included in an online VAT report.
      • Electronic VAT report status 90 - transaction already VAT reported.

      The status for each transaction is displayed in 'General Ledger. Display Transactions' (GLS211/G).

    • The information specified for inclusion in the report header. If a fiscal representative is defined for the base country in 'Fiscal Representation. Open' (TXS030), most of the values proposed are retrieved from the internal supplier selected for the fiscal representative.
  2. Create a manual online report

    Once the selection criteria have been entered in (TXS002), the online VAT report should be scheduled to run automatically in the job scheduler.

    Online VAT reports should be scheduled to report both transactions not yet VAT reported and corrective reports. The corrective report is created when the field 'Corrective report' in enabled on (TXS002/E).

    The online VAT report is created from the job scheduler and the transactions included in the report are updated with electronic VAT report status 20 - transaction included in an online VAT report, to ensure that the transactions are not included in another report. A field is displayed in (TXS100) to indicate if a VAT report is a first or a corrective report.

  3. Send a preliminary report (optional)

    By selecting related option 24='Send Preliminary Online Report' in (TXS100), the report is submitted to the tax authorities, but the included transactions are not updated in the General Ledger. This step is optional.

  4. Review and correct transactions

    By selecting a line in (TXS100), you can drill down to 'VAT Run. Open User Defined Details' (TXS119) where the detailed transactions connected to the VAT report line are displayed. By selecting a detailed transaction in the table, you can drill down directly to the General Ledger, and correct any VAT related values that do not affect the recorded VAT amount in 'General Ledger. Display Transactions' (GLS211/G).

    Corrections are usually only made for manually entered VAT and transactions from scanned invoices. Changing the VAT code or VAT rate in (GLS211/G) results in an update to the calculated VAT, depending on the VAT account type. However, the recorded VAT (amount booked in the General Ledger) is not adjusted automatically.

    To correct the recorded VAT amount for a transaction, reverse the entire voucher, as described in Reverse Voucher, or specific accounting lines, as described in Create Corrective Voucher in the General Ledger, and enter the voucher again.

  5. Hold and release transactions

    By selecting related option 7='Hold', a transaction in (TXS118) can be stopped from being VAT reported. The transactions in the General Ledger connected to the transaction in (TXS118) are labeled as 'Hold' in (GLS211/G).

    By selecting related option 6='Release', a transaction in (TXS118) can be released and included in an online VAT report. It is also possible to hold and release transactions in (GLS211/G). Use related option 7='Change VAT Info' and check or uncheck the field 'Hold'.

    Note: To avoid errors in the VAT report, it is important to update all transactions in a voucher related to transaction in (TXS118).
  6. Send a manual VAT report

    By selecting related option 19='Confirm electronic report' in (TXS100), the report is submitted to the tax authorities. The transactions in the General Ledger included in the report are updated with electronic VAT report status 90 - transaction already reported.

  7. Resend a VAT report (optional)

    By selecting related option 23='Resend Online Report' in (TXS100), the report can be resubmitted to the tax authorities in case something went wrong in the original transmission. This step is optional.

  8. Release transactions for VAT reporting

    By selecting related option 22='Release for online VAT reporting' on a transaction in 'Voucher. Display' (GLS200/B), all transactions on the voucher are updated with electronic VAT report status 01, so that the transactions can be included in the next corrective online VAT report. This can only be done on a voucher where at least one transaction has electronic VAT report status 90 - transaction already VAT reported, and no transaction has status 20 - transaction included in an online VAT report.

Tables in electronic reporting

The data model below illustrates the tables used in creating an online VAT report.

Related topics