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VAT Rate Change

VAT Rate Change

Owned by Lango: Language and translation manager
Last updated: Nov 29, 2024Version comment
3 min read

In the event of a legislative change in VAT rates, it is necessary to reflect these changes in BC and OC as well.

In BC, the necessary actions are carried out for all rate changes. Whereas in the shopping centre, the changes mainly affect the basic VAT rate.

To change the VAT rate in general, there is a tool for mass changes to VAT in BC, see the description in the PD Nastavení DPH, Kontrolní hlášení DPH a Souhrnné hlášení | Hromadná změna sazby DPH or see Manage VAT Rate Changes - Business Central | Microsoft Learn.

To ensure a change in the VAT rate in the system, it is necessary to exchange the VAT posting groups of the goods. These changes are made in the system settings. In particular, the changes concern adjustments in the following areas:

Area

Settings 

VAT

  • Create new VAT product posting groups for the new VAT rates (VAT Product Posting Group)

  • For new VAT product posting groups, create corresponding combination settings in the VAT Posting Setup table

Change in VAT Rate

In the VAT Rate Change Setup table, execute:

  • Conversion setup for changing the VAT posting group of items and/or for converting the Business Posting group of items

  • Run the Convert task to system/convert the VAT rate in:

    • Set up G/L Accounts

    • Items

    • Other options according to the company's needs except for purchase documents, where a separate task is created for purchase orders, described in a separate chapter.

Standard Sales Codes (Recurring Sales Lines)

  • Manually change settings in rows

    • Binding to Invoice Import XLS.

Standard Purchase Codes (Recurring Purchase Lines)

  • Manually change the settings in the rows.

Setting up cash cases (Cash Desk Event)

  • manually change the settings of individual cash register cases

    • valid only for CZ localization.

Purchase and sales backups

Change the VAT rate in issued or lower statuses of advances that have not been paid as of the effective date of the VAT rate change.

Change other settings in accordance with the legislative layer.

Prepayment

Change the rate in the Sales & Receivables Setup table.

VAT Statements / Control Statement / Sales List Statement

  • Edit the settings in the VAT Statement table for newly created combinations of VAT product posting groups

  • If A new version of the VAT form would be released so:

    • Import the new XML format

    • test the VAT export and upload the resulting file to the form on the Tax Office website

  • Edit settings for Control Report (SK) → VAT Check Statement Names

  • For the Total VAT Statement (SK), it is not necessary to make adjustments in the settings

Business Setup

Change settings in:

  • Vzor smlouvy o financování / Financing Contract Template

  • Typy rámcových smluv / Framework Contract Types

  • Účto skupiny rámcové pojistné smlouvy / Ins. Frame Agreement Post. Group

  • Typy služby / Service Types

  • Nastavení předmětu financování / Financed Object Setup

    • connection with the sale of an item through the Evidence of Selling Prices on the Item Card.

Rental Setup

Change the settings in the Tariff Groups table.

Insurance Framework Contract Posting Setup

For Insurance Framework Contracts, the following must be set manually in the table:

  • Ins. Frame Agreement Post. Group A new VAT rate code in the VAT Prod. Posting Group field.

Subsequently, it is necessary to run mass Jobs to exchange VAT product posting groups on existing contracts. There are two tasks, one for contracts before activation and the other for active contracts, see the description of the tasks in PD https://iao.atlassian.net/wiki/x/D4CjC https://iao.atlassian.net/wiki/x/MACqC

The VAT rate can also be exchanged on existing purchase orders that have not been invoiced. There is also a separate batch task for this purpose, see the description of the task in PD https://iao.atlassian.net/wiki/x/EYCuC

Financial Leasing Contracts with Special VAT Regime

Info on financial leasing contracts with a special VAT regime:

  • Only objects are repaired as in the case of regular financial leasing (contract headers, payment documents, calculation inputs...)

  • Existing Special Mode Items do not need to be corrected:

    • Pre-activation contracts should update the Special Mode Entries in the calculation, especially the entry fee item

    • Contracts active – items of the margin type – VAT on the item will not be corrected, it is not used in the calculation of calendars (only the tax base is used)  

    • Items for the closing fee must be recalculated, but this one is not in the OC or is not used.