VAT book - overviewThis functionality is specific for Italy. Italian law requires companies to prepare and submit a VAT book and a VAT liquidation report. The VAT book is a legal report of all value added tax (VAT) transactions of a company, in date sequence. The transactions can be grouped by tax articles, which typically group transactions that have the same tax percentage. In addition to the VAT book, rather than the VAT declaration, companies must periodically submit a VAT liquidation report which shows the net VAT amount payable to the tax authorities for the report period. The liquidated VAT amount is the result of the VAT on purchases minus the VAT on sales. If the result is a negative amount, the amount must be paid to the tax authorities. If the result is a positive amount, the amount is carried over as a credit amount to the next VAT book period. In a multicompany structure, you can set up the VAT book and generate the VAT book reports for the individual financial companies. LN calculates and prints the VAT book amounts in the financial company's local currency. If you have printed the VAT book for all the companies of a financial company group and all the companies use the same local currency, you can print the consolidated VAT book for the group company. VAT book amounts The following VAT book amounts require an explanation:
VAT liquidation amounts The VAT liquidation report amounts The VAT liquidation report shows the following amounts:
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