Germany

Tax reconciliation

Tax reconciliation (VAT verification) is used to check VAT and provide information about the correctness of the accounting. Tax reconciliation is carried out periodically by the tax authorities as part of a tax audit. Companies use tax reconciliation to detect errors in their accounting. These errors must be corrected in a timely manner because significant differences can lead to tax evasion charges.

The purpose of tax reconciliation is to check whether the declared VAT amounts correspond to the VAT base amounts.

This functionality has been added to comply with the legal requirements for tax reconciliation in Germany, but can also be a used for tax reconciliation in general.

These features are now supported:

  • The Select Tax Declaration Lines (tfgld1226m000) session now updates the selected lines from the Tax Analysis (tfgld1520m000) session with the Net Amount Tax Position and the Tax Amount Tax Position to declare the tax analysis line.
  • The Tax Declaration Analysis tab has been added to the Tax Declarations (tfgld1625m000) session. For this tab, these data views are available:
    • View 1: Tax Declaration / Net Amount Tax Position / Tax Amount Tax Position
    • View 2: Tax Declaration / Tax Origin / Tax Country / Tax Code / Tax Rate
  • The Declaration Analysis Details (tfgld1520m100) session has been added to display the tax analysis lines so that they meet the German tax reconciliation requirements.
  • The Tax Declaration Analysis (tfgld1528m000) session has been added to show the tax analysis data as aggregated balances. From the Views menu, these views can be selected:
    • View 1: Tax Declaration / Net Amount Tax Position / Tax Amount Tax Position
    • View 2: Tax Declaration / Tax Origin / Tax Country / Tax Code / Tax Rate
  • If analysis is required on already declared tax analysis data, the Refresh Tax Declaration Analysis (tfgld1228m000) session is now available to update the existing data with the new Net Amount Tax Position and Tax Amount Tax Position fields.