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Principles
VAT is a transaction tax that is paid by end users, which can be a consumer or a company. You set up VAT to specify a VAT percentage to calculate the following scenarios:
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Set up a VAT business posting group.
Specify a combination of VAT posting setups.
Set up VAT product posting groups.
Assign posting sales tax groups.
Use refundable VAT for trade between EU countries/regions.
Understand VAT rounding for documents.
Dependencies and assumptions
Additional dial settings may be required to complete.
In this documented area, the VAT setup for item posting is not described in detail.
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Core Localization Pack for Czech - Business Central | Microsoft Learn
Dependencies and assumptions
Additional dial settings may be required to complete.
Set Up VAT Bus. Posting Groups
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VAT Bus. Posting Group)
by selecting from the table VAT Bus. Posting Groups
VAT Prod. Posting Group
by selecting from the table VAT product posting groups
VAT Calculation Type
Normal VAT (Normal VAT)
for the standard calculation of local VAT,
Reverse Charge (VAT)
This option is used when the line relates to a sale to another country or region of the European Union, where the seller does not collect VAT because it is the buyer who has to calculate and pay VAT to the tax authority, or in the case of a domestic transaction under the PDP regime,
Full VAT (Full VAT)
This option is used when the amount you charge in this line is made up entirely of VAT. This option can be useful, for example, when you are creating Provision in order to correct an error in the VAT calculation. It is also used for Import VAT, when you need to post a document containing the full amount of VAT, e.g. you will receive a VAT invoice from the Tax Office for imported goods,
Sales Tax
This option is used only if the program is set up to use U.S. sales tax. This option instructs the program to retrieve information from specific sales tax tables and calculate sales tax instead of VAT
Description
Specifies a description for this particular combination of a VAT business for this particular combination of a VAT business posting group and a VAT product posting group.
Closed (Blocked)
Specifies whether this particular combination of a VAT business posting group and a VAT product posting group is closed.
VAT % (VAT %)
Specifies the appropriate VAT rate for specific combinations of a business VAT posting group and a VAT product posting group. Do not enter a percent sign, only a digit. For example, if the VAT rate is 21%, enter 21 in the field.
VAT Identifier
Specifies the code for a group of different VAT posting settings with the same attributes, such as a VAT percentage (see also the description of use in the text above and in chapter VAT Clause 12.6.2)
VAT Clause Code
select VAT clauses from the table, see chapter 12.6.2 for a description of the clause settings
EU Services (EU Service)
Specifies whether combinations of VAT business posting groups and VAT product posting groups should be reported as services in periodic VAT statements (in Sales list statements).
Intrastat Service
Specifies whether this combination of the VAT business posting group and the VAT product posting group is used in the Intrastat journal.
Non Deductible VAT Correction Account (Non Deduct. VAT Corr. Account)
Specifies the general ledger account for the correction of non-deductible VAT entries as part of the annual settlement of the VAT coefficient
This field is no longer available for BC17 and above. Non-deductible VAT is handled in a new way for BC22 and above. A description of the settings and use is available in the MS documentation.
Tax Category
Specifies the VAT category in connection with electronic document sending. For example, when you send sales documents by using PEPPOL, the value in this field is used to populate the TaxUsed element in the Vendor group. The number is based on the UNCL5305 standard.
Reverse Charge Check (PDP)
specifies whether the PDP will be checked in relation to the limit setting in the Commodities – Commodity Settings table.
In the
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Sales
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the following fields are set
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:
Sales VAT Account
Specifies the general ledger account to which sales VAT is posted for the combination of a business group VAT and an item VAT group
Account sm. Sales VAT Currency Exchange Rate Account
Specifies an auxiliary account for clearing sales VAT because of the different exchange rate for VAT
Sales Sales Statement (VIES Sales)
Specifies the option to include this posting setup in the Sales List.
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Description of settings and functionality for BC22 and higher version available in MS documentation Set up non-deductible VAT - Business Central | Microsoft Learn
Set Set Up VAT Posting for Import VAT Processing
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The settings in this table are used when compiling and generating VAT, KH, SH, and Road tax statements.
In the Bookmarked General and Address Specification tabs, to set up the company's registration data is setinformation.
Company Trade Name
The name is entered without the trade name appendix
Company Trade Name Appendix
E.g. a.s., s.r.o., etc.
Company Type
Mandatory setting for working with VAT forms. It must be entered by selecting it from the menu
Legal (Corporate)
Physical (Individual)
Primary Business Activity Code
NACE is awarded to the company
Tax Payer Status
must be entered by selecting it from the menu
Payer
Not a Non-Payer
Other
VAT Group
In In the Representative tab) the data of representatives (from the ranks of employees) whose names must/can be included on internal or external documents is set.
Company Official Nos.
A number series is selected, or a new number series is created
General Manager No., Accounting Manager No., and Finance Manager No.
it is selected from the Company Official table, or a new one is created, see. Chapter 12.12.1 This setting is adopted by forms e.g. for VAT, if the representatives are not entered directly when working with these forms.
In In the Company Representative tab (Signatory) the details of the company's external representative, if the company has such a representative, will be set. Typically, a tax advisor authorized to file returns on behalf of a company. The representative's details must/can be included on internal or external documents.
Official Code
the corresponding representative code is filled in according to the Tax Office's code list in accordance with the setting of the Official Type field
Official Type
is selected from the menu
Physical (Individual)
Corporate.
Other fields are set as needed.
In the Registration (Signatory) tab In particular, the following data will be set:
Tax Office Number
Specifies the number of the tax authority for reporting.
Territorial office number, tax. Tax Office Region Number
Specifies the number of the IRA's territorial office for reporting.
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Fields Tax Authority No., Court Authority No., and Registration Date
It is not mandatory to fill it in.
In the VAT Statement (VAT Statement tab) the following data is set:
VAT Statement – VAT Statement Authority Employee No.
Specifies the authorized employee for the recapitulative statement.
VAT Statement Filled by Employee No.
Specifies the employee who created the recapitulative statement.
VAT Statement Country Name
Specifies the country name for the VAT Statement.
In In the VAT Control Report tab) data for compilation and export of VAT Control Report and VAT Statement are set up and filled in.
VAT Control Report XML Format
Specifies the default XML format for the export of the control report. The format KH 03.01.03 is selected.
Simplified Tax Document Limit
Specifies the value for the simplified tax document for the VAT Control Report. According to CZ legislation, the value of 10,000 is entered.
VAT Control Report E-mail
Specifies the e-mail address for the VAT Control Report.
VAT Statement Template Name
Specifies the default VAT statement template and is selected from the VAT Statement Templates table.
VAT Statement Name
Specifies the default VAT statement and is selected from the VAT Statement -> VAT Statement Names table. A statement of VAT-19 is collected.
VAT Control Report Nos.
Specifies the number sequence for the VAT Control Report and is selected from the No. Series table, or a new number series is created.
In Recapitulative Statement In the Sales list (VIES) tab are used to set up and fill in the data for compilation and export of the report.
Sales list – VIES Decl. Authorized Employee No.
Specifies the authorized employee for the recapitulative statement and is selected from the Company Officials table.
Sales List Compiled By – Employee No. (VIES Decl. Filled Employee No.)
Specifies the employee who created the recapitulative statement and is selected from the Company Officials table.
VIES Declaration Report No.
Specifies the object number for the VIES Declaration. Object 31058 is being set.
VIES Declaration Export No.
Specifies the object number for exporting the VIES Declaration. Object 31061 is being set
VIES Number of Lines
Specifies the number of VIES Declaration lines. The maximum value is 27. For CZ, the value is set to 20. The value for SK is set to 12.
VIES Declaration Nos.
Specifies the number sequence for the VIES Declaration and is selected from the VIES Declaration table, or a new number series is created.
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Row No.
A code that identifies the line. Row No. can be used to add up rows in the same group (e.g. VAT bases from domestic input transactions). You can use the same code for these rows in the same group, e.g. 1Z
Description
Description of the row to be set, or the title of the row group
Type
Specifies the line type. Possibilities
Account Totaling
for this type, the Account Totaling field is set, in which accounts are selected from the Chart of Accounts. It is usually not used to set up the Czech VAT Statement. The Account Totaling field is hidden by default, but can be displayed using the Personalize function
VAT Entry Totaling
this type must be set up for the lines in which the VAT base and amount are to be calculated. For this line type, additional fields must be set in the row:
Gen. Posting Type
VAT Business Postin Group
VAT Product Posting Group
Amount Type
Row Totaling
It allows adding up series with a given code, e.g.
Row Totaling = 1Z|1D adds the amounts from all rows with Row No. 1Z and 1D
Description
A line of type Description is used, for example, to set the name of a group of rows. These rows do not need to be set to Row No.
Formula (Obsolete)
Not used
Formula (Formula)
It allows you to perform basic mathematical operations on series (addition, subtraction, multiplication, division). For example, the formula 1Z+1D adds the amounts from all rows with Row No. 1Z and 1D
Note: When changing the type, the row settings are deleted!
Gen. Posting Type
For lines of the VAT Entry Totaling type, it is necessary to set whether to filter for VAT Entries of the Purchase or Sale type. This filter will be applied when selecting VAT Entries for the line. Options are available:
Blank
Purchase
Prodej (Sale)
Settlement
VAT Business Posting Group
it is set for lines of the VAT Entry Totaling type. This filter will be applied to the selection of VAT Entries for that line. Selecting VAT Business Posting Group from the code list, it is not possible to enter multiple codes in one field
VAT Product Posting Group
it is set for lines of the VAT Entry Totaling type. This filter will be applied to the selection of VAT Entries for that line. Selecting VAT Product Posting Group from the code list, it is not possible to enter multiple codes into one field
Amount Type
it is set for lines of the VAT Entry Totaling type. The setting determines which field from VAT Entry is used to calculate the Amount in the statement. Possibilities:
Blank
Amount – the Amount field from VAT Entry is used to calculate the amount
Base – the Base field from VAT Entry is used to calculate the amount
Unrealized Amount - the Unrealized Amount field from VAT Entry is used to calculate the amount. It is not used in the conditions of Czech legislation
Unrealized Base - the Unrealized Base field from VAT Entry is used to calculate the amount. It is not used in the conditions of Czech legislation
Base of Advance Payment (Adv. Base) - the Advance Base field from VAT Entries is used to calculate the amount. These are entries that were created by posting tax documents/credit notes on a purchase or sales prepayment
VAT Base (Non Deductible) - the VAT Base (Non Deductible) field from the VAT Entry is used to calculate the amount
VAT Amount (Non Deductible) - the VAT Amount (Non Deductible) field from the VAT Entry is used to calculate the amount
Account Totaling
It is used to set up G/L accounts from the chart of accounts if Type = Account Totaling. An interval or series of general ledger accounts can also be entered. To use the settings, see Tip below.
Row Totaling
used to set the formula for Type = Formula. For example, the formula 1Z sums all the statement rows with the code of the 1Z series, the 1Z-1D formula is the difference of the total amounts from all the rows of the 1Z and 1D series.
Calculate with
Specifies whether amounts in the VAT statement will be calculated with their original sign or with the reverse sign. The following options are designed for this:
Sign – set primarily for Purchase
Opposite Sign – set primarily for Sales
Print
Specifies whether a VAT statement line will be printed on a report that contains a completed VAT statement. The setting is also valid for exporting a row to an XML file. The rows to be exported must be checked.
Show
Specifies whether the calculated amount remains on the VAT statement line or the field resets according to the selected option and sign of the calculated amount:
Blank – the calculated amount always remains on the line
Zero If Negative – If the calculated amount is negative, zero will be displayed. Used to set up line 64 of the tax return
Zero for Positive (Zero If Positive) – If the calculated amount is positive, zero is displayed. Used to set up line 65 of the tax return
Attribute Code
important mapping field, contains XML code for exporting the row to an XML file, it is set to the rows to be exported
VAT Control Report Section Code
important mapping field, it contains the code of the VAT Control Report section. It is set for lines with Type = VAT Entry Totaling, the items of which are to be included in the VAT Control Report
Ignore Simplified Tax Document Limit
Specifies whether or not the system will check the simplified tax document limit for the VAT statement, depending on whether this check box is selected.
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The best practice for changing the VAT rate is to fully post and close open purchase orders and other documents before the date of the VAT rate change to ensure that these documents are not affected by the change. This is the cleanest approach that will allow you to launch new orders and documents with the new VAT rate.
VAT VAT Rate Change Tool
The VAT Rate Change tool can help to some extent with the transfer of VAT rates on master data, journals and documents. This is useful if, for example, you have orders that cannot be closed before the transition date to the new rate.
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Update Gen. Journal Lines
Update Gen. Journal Allocation
Update Std. Gen. Jnl. Lines
In these fields, you can select one of the following options:
VAT Product Posting Group
General Product Posting Group
Both.
None (No)
Bookmark Documents
On this tab, you can set on which documents you want to change the used posting groups. For the OC area, the following settings can be considered:
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