Online VAT Reporting

Outcome

An electronic M3 Business Message is created. The electronic file is stored in the output folder selected when Infor Enterprise Collaborator (IEC) is set up.
All transactions have correct VAT-related values such as VAT date, VAT code, VAT rate, and VAT registration number.
All transactions included in a confirmed Online VAT report are labeled with additional information numbers 029 (electronic VAT report number) and updated as VAT reported in the General Ledger.
A VAT declaration voucher is not created.

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

Common starting conditions

Transactions must have been recorded based on VAT codes. These VAT codes are defined in 'VAT Code. Open' (CRS030) and determine the VAT rate and VAT method.
You have selected the date to use as the basis for the General Ledger transactions in the 'VAT date type' field in 'Settings - General Ledger' (CRS750/F) or 'VAT Code. Open' (CRS030/E), or both. This can be: accounting date, invoice date, due date, or delivery date.
Note: Although the 'VAT report from date' (the date from which records are selected for VAT reporting) is updated automatically on the same panel, it can be adjusted manually.
A user-defined VAT report template that selects transactions based on local and global VAT requirements must be created in 'VAT Report Template. Open' (TXS005). The VAT report template must be defined with lines, columns and a template. The amounts in the VAT report are retrieved per the definition in the columns. The template defines the key fields and table fields of the online VAT report.
Accounts for VAT receivable, VAT payable, , or both, must be defined in 'Accounting Identity. Open' (CRS630).

Settings specific to online VAT reporting

Number series 64/F must be defined in 'Number Series. Open' (CRS165). This number series provides the unique VAT report number when the electronic report is confirmed. This number is also used as the VAT run ID in (TXS100). The number is saved for each transaction in the FGLEDX table under additional information number 029 and is also displayed for each VAT run in (TXS100/E).
The MI transactions 'LstVATUserDefined' must be defined in 'VAT Reporting. Connect MI Transactions' (TXS001).
The company has an agreement with the tax authorities for the method of electronic report transmission.
Fields of transaction type 2 (fields reserved for electronic VAT reporting) with country-specific information for inclusion in the report header must be defined in 'Taxation Reporting. Open Report Fields' (TXS035). Since the legal requirements for reporting or EU sales differ between the EU member states, you might need to define your own fields to include information that is unique to your country in the report header. These additional fields are transmitted through the API program (TXS035MI).
Infor Enterprise Collaborator must be set up, as described in the technical documentation for that tool. Note that for the automatic process, the MBM initiator that initiates the generation of the electronic report using a business message is based on document 524 in 'Standard Document. Open' (CRS027) and in 'Document. Open' (CRS928). For the manual process, the MBM initiator is based on document 514. For details, see the design document of each message.

Limitations for online VAT reporting

Capability to change the reported amount on a transaction to make it partially VAT reported in 'VAT Run. Open User-Defined Lines' (TXS118) is not available.
This limitation exists in 'VAT Run. Open User-Defined Lines' (TXS118):
- Capability to change the reported amount on a transaction to make it partially VAT reported is not available.
Functionality to create VAT declaration vouchers and VAT payment vouchers is not available since the transactions in an online VAT report are automatically labeled as VAT reported when accepted by, or sent to, the tax authorities.
Functionality to create other types of electronic VAT reporting is not available on a VAT run created as an online VAT report.

Workflow

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

Follow these steps for the automatic process

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.
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.
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.
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'.
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.
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).
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

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.
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.
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.
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.
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).
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.
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.
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.

FVATHE stores information included in the header of the electronic VAT report. The table is used by API program TXS100MI.
FVTUDL stores detailed information per the key fields, columns, alpha-numeric, numeric and date fields defined in 'VAT Report Template. Connect User-Defined Template' (TXS004). The information is retrieved from the General Ledger, accounts payable, and accounts receivable when you create the proposal. The table is updated when MI transaction LstVATUserDef is defined in 'VAT Reporting. Connect MI Transactions' (TXS001) and used by API program TXS100MI. The table is also used when a user-defined electronic report is displayed in 'VAT Run. Open' (TXS100). The online VAT report uses the same tables and MI transaction LstVATUserDefined as the user-defined electronic report. This online VAT reporting process is an automated process whereas the user-defined electronic reporting process is a manual process in (TXS100).