Setting up a tax declaration

The process to compose a tax declaration from the tax amounts registered for the relevant tax codes includes these steps:

1. For each authority to which the tax or social contribution must be paid, define a collection office.
2. For each box on the tax declaration, define a tax position.
3. Link the tax codes related to the box to the tax position.
4. Add the tax position to the tax declaration master.

To define a collection office:

1. In the Business Partner (tccom4100s000) session, create a business partner.
2. Define the invoice-from and the pay-to roles for the business partner.
3. In the Business Partner (tccom4100s000) session, select the Collection Office check box.

To set up a tax declaration:

1. Tax Position (tfgld0620m000)
   Define a tax position for each box on the tax declaration. Type the name of each box in the Description field. For example, in European Union countries, the box names can be Intracommunity Supplies and Shifted Tax on Services.
2. Tax Position (tfgld0620m000), Relations by Tax Position tab

   Link the tax codes that contribute to the amount in a box to its tax position. If you generate the tax declaration, LN calculates the sum of the tax amounts with these tax codes and prints the resulting amount for each box.

   For each tax code, you can enter a number of selection criteria to refine the selection of the tax amounts. For example, you can select sales tax amounts or purchase tax amounts, and tax on advance payments or receipts.

   The tax codes linked to the tax position must all have the same value for the Amounts Entered in Financials field, which can be Gross or Net.

3. Tax Declaration Master (tfgld1620m000)

   Define a tax declaration master for each combination of type of tax declaration and collection office. For declarations of withholding tax and social contributions, you can define separate tax declaration masters for the various tax categories.

   The setup procedure differs for tax declarations that you submit manually and that you submit automatically.

   • For manual submission

     For every box on the tax declaration, click New on the Tax Positions by Tax Declaration Master tab. The Tax Positions by Tax Declaration Master (tfgld1121m000) details session starts. Select the tax position that corresponds with the box on the tax declaration.

   • For automatic transfer
     Follow the instructions described in Automatic transfer of tax declarations.

   If you save the details, LN validates the data, for example, all the tax codes of a tax position must be defined for the tax country of the declaration master.