VAT Setup, VAT Control Reports And VIES Declarations
- Lango: Language and translation manager
- Kalmová Silvia
- 1 Principles
- 2 Dependencies and assumptions
- 3 Set Up VAT Bus. Posting Groups
- 4 VAT Prod. Posting Group Setup
- 5 Creating VAT Setup Combinations
- 6 Assigning VAT Posting Groups
- 7 Use of refundable VAT for trade between EU countries/regions
- 8 Reverse Charge
- 9 Control Statement
- 10 Sales List Statement
- 11 Statutory Reporting Setup
- 12 Setting Up VAT Statements
- 13 Mass Change of VAT Rate
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:
Who are you selling to?
Who you're buying from.
What you're selling.
What you're buying
If you set up VAT, you'll need to take the following general steps:
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.
In this documented area, the VAT setup for item posting is not described in detail.
MS regularly updates the documentation for this setting area. Documentation valid for BC22 is available at the following link:
VAT Management overview - Business Central | Microsoft Learn
CZ localization documentation valid for BC22 is available at this link:
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
You create VAT Business Posting Group codes to represent customers and vendors.
VAT Business Posting Group codes define how VAT will be calculated and charged, depending on the type of customer or vendor involved in the transaction. For example, VAT Business Posting Groups can describe where a customer or vendor is located.
Use codes that are easy to remember and that describe business groups such as EU, Non-EU, or domestic. The code must be unique. You can't have the same code multiple times in a table. You can set up as many codes as you need.
Code
Enter a code to identify the group.
Description
Enter a short description of the group
VAT Prod. Posting Group Setup
You create VAT Product Posting Group codes for items and resources.
The VAT Product Posting Group code determines how VAT is calculated and charged, depending on the item that is purchased or the type of item or resource that is sold.
Use codes that are easy to remember and that describe business groups, such as No-VAT for different without VAT, VAT 10 for different with 10 percent VAT, and DPH21 for different with 21 percent VAT.
Code
Enter a code to identify the group.
Description
Enter a short description of the group
Creating VAT Setup Combinations
You set up a combination of VAT Business Posting Group and VAT Product Posting Group in the VAT Posting Setup.
For each combination, you can specify the VAT percentage, the type of VAT calculation, and the general account numbers of the VAT posting entries that are related to sales/purchases and refundable VAT. You can also specify whether VAT is recalculated when the discount is settled or received.
You can enter as many combinations as you wish. If you want to divide VAT posting setup combinations into groups with the same attributes, then you can define a value of VAT Identifier for each group, and then assign an identifier to each member of the group. The VAT Identifier then monitors the same VAT rate settings for the group defined in this way.
VAT Posting Setup Card
You can use the Edit Open the card of a specific line, where all the fields needed for the correct accounting setup and VAT calculation are available.
In the General the following fields are set:
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 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 Sales the following fields are set:
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.
In the Purchases the following fields are set:
Purchase VAT Account
Specifies the G/L account to which purchase VAT is posted for the combination of a business group and an item group.
Purchase VAT Currency Exchange Rate Account
Specifies an auxiliary account for clearing purchase VAT because of different exchange rates for VAT
Reverse Chrg. VAT Acc.
Specifies the general ledger account to which you want to post refundable VAT for this combination of VAT business posting group and VAT product posting group, if you have selected Refundable VAT in the VAT Calculation Type field.
Allow Non Deductible VAT
Specifies the non-deductible VAT permission for the VAT posting setup.
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.
VIES Purchases
Specifies the option to include this posting setup in the Sales list for purchase.
On the Advances the following fields are set for BC17 and below:
Sales Advance Offset VAT Acc.
offset account for posting the VAT amount from the tax document for the received payment (debit side, e.g. 324)
Sales Advance VAT Account
account for posting the VAT amount from the tax invoice for the received payment (credit page, e.g. 343)
Deducted Sales Adjustment Account Basic. VAT (Sales Ded. VAT Base Adj. Acc.)
is used to post a VAT correction when deducting the advance payment on the final invoice
The account uses the extension features of the backup engine Adjust VAT by Adv. Payment Deduction
The feature is available on sales order and sales invoice
The function corrects the VAT base and amount of the final zero-amount invoice, including VAT, after deduction of prepayment invoices, so that the amounts match the deduction amounts. To correct the amounts, the VAT difference functionality is used and a new document line is created for base correction.
Purchase Prepayment VAT Settlement Account (Purch. Advance Offset VAT Acc.)
offset account for posting the VAT amount from the tax document for the sent payment (debit side, e.g. 314)
Purchase Prepayment VAT Account (Purch. Advance VAT Account)
account for posting the VAT amount from the tax document for the sent payment (credit page, e.g. 343)
Deducted Expense Adjustment Account Basic. VAT (Purch. Ded. VAT Base Adj. Acc.)
is used to post a VAT correction when deducting the advance payment on the final invoice
The account uses the extension features of the backup engine Adjust VAT by Adv. Payment Deduction
The feature is available on purchase order and purchase invoice
The function corrects the VAT base and amount of the final zero-amount invoice, including VAT, after deduction of prepayment invoices, so that the amounts match the deduction amounts. To correct the amounts, the VAT difference functionality is used and a new document line is created for base correction. This automatic function can only be used if the total amount including VAT of the final supply does not exceed the accuracy of rounding the amount of the local currency (in Czech legislation it is 0.01 or -0.01)
Setting up VAT posting for prepayments for version BC20 and above is described in the MS documentation Advance Payments activation and upgrade - Business Central | Microsoft Learn
On the VAT Control Report the following fields are set:
VAT Rate
Options for VAT Rate Type
Basic
Reduced
Reduced 2
it is used in the Control Report to divide the tax base and tax according to the type of rate
Ratio Coefficient
Checked if the combination of posting groups is to be used for reporting tax in a proportional amount according to § 75
To calculate the proportional entitlement, it is necessary to set the reduction coefficient similarly to the tax in the reduced amount according to Section 76, i.e. Allow Non Deductible VAT = Yes and set % Non Deductible VAT in the Non Deductible VAT subtable
Notification
In version OC17 (BC17) there is an error during the processing of the control statement – the entire base and the entire tax are loaded, not the proportional part of the base and the tax.
Corrections for Bad Receivable
The field is used for the posting group combination that is specified for corrections related to bad debts. To be reported in section A4
Election
blank
this is not a correction of an irrecoverable receivable (code N in the Control Report)
Insolvency Proceedings (p.44)
For corrections pursuant to Section 44 of the VAT Act as amended until 31 March 2019 (code A in the Control Report)
Bad Receivable (p.46 or 74a))
this is a correction pursuant to § 46 et seq. of the VAT Act (code P in the Control Report)
When you use the Suggest Lines action, the Corrections field for bad debts is populated according to the VAT posting setup. If the value of the Corrections field for bad debts is not empty, then the system ignores the amount limit.
Supplies Mode Code
used to indicate special modes in A4 sections
election
blank
It will be used for common transactions (code 0 in the Control Report)
par.89 (Paragraph 89)
It will be filled in if the given combination of posting groups represents a special regime for travel services according to Section 89 of the VAT Act (code 1 in the Control Report)
par.90 (Paragraph 90)
It is filled in if the given combination of posting groups represents a special regime for used goods according to Section 90 of the VAT Act (code 2 in the Control Report)
For more information, visit:
Nastavení daně z přidané hodnoty - Business Central
Balíček základní lokalizace pro češtinu - Business Central
VAT Clause
Set up a VAT clause that describes information about the type of VAT that is applied. The information may be required by government regulation. After you set up a VAT clause and associate it with a VAT posting setup, the VAT clause is displayed on printed sales documents that use the VAT setup posting groups.
If necessary, you can also specify how to translate VAT clauses into other languages. Then, when you create and print a sales document that contains a VAT Identifier, the document will contain a translated VAT Clause. The Language Code shown on the customer card determines the language.
When non-standard VAT rates are used in different types of documents, such as invoices or credit notes, companies usually need to provide an exemption text (VAT clause) stating why a reduced or zero VAT rate has been calculated. You can define different VAT clauses to be included in business documents based on the document type, such as invoice or credit memo. You can make the settings on the page VAT Clauses.
You can edit or delete the sales tax clause, and the changes will be reflected in the generated report. However, Business Central does not keep a history of changes. In the report, descriptions of the VAT clause are printed and displayed for all lines next to the VAT amount and the VAT base amount. If a VAT clause has not been defined for any lines in the sales document, the entire section is omitted when the report is printed.
To set up a VAT Clauses Setup:
Select the
and enter VAT Clause (VAT Clauses) and select the related link.
On the page VAT Clause (VAT Clauses) to create a new row.
Afield Code (Code) to specify the identifier of the clause. Use this code to assign a clause to VAT posting groups.
Afield Description (Description) to enter the VAT exemption text that you want to appear in documents that can include VAT. Afield Description 2 (Description 2) to enter additional text if necessary. The text appears on new lines in the document.
Select the Description by document type.
On the Description by document type page, fill in the fields to set what text is displayed for the document type.
Optional: To assign a VAT clause to the VAT posting setup immediately, select Setup, and then select the clause. If you want to wait, you can assign the clause later on the VAT Posting Setup page.
Optional: To specify how to translate the sales tax clause, choose an action Překlady (Translation).
To assign a VAT clause to the VAT Posting Setup:
Select the
In the VAT Clause Code (VAT Clause Code) to select the clause to use for each VAT posting setup to which it applies.
To set up translations for VAT clauses:
Select the
Select the Překlady (Translation).
Afield Language Code Select the language you want.
In the fields Description and Description 2, insert translations of descriptions. This text will appear on translated VAT documents.
Non-deductible VAT
Description of settings and functionality for BC22 and higher version available in MS documentation Set up non-deductible VAT - Business Central | Microsoft Learn
Set Up VAT Posting for Import VAT Processing
The Import VAT function is used when you need to post a document that contains the full amount of VAT. You use this option if you receive a VAT invoice from the tax authority for imported goods.
To set up import VAT codes, follow these steps:
Select the
On the VAT Prod. Posting Groups page, set up a new VAT Prod. Posting Group for import VAT.
Select the
On the VAT Posting Setup page, create a new line or use an existing VAT business posting group in combination with a new VAT item posting group for import VAT.
Afield VAT Calculation Type choose Full VAT.
Afield Purchase VAT Account Enter the account that you want to use to post import VAT. All other accounts are optional.
Assigning VAT Posting Groups
After you have set up VAT Posting Groups, you assign them to G/L Account, Customers or Vendors, and Items or Jobs.
Instead of manually assigning these groups to accounts, you can set the default VAT Business Posting Groups to General Business Posting Groups and the default VAT Product Posting Groups to General Product Posting Groups. The code is then automatically inserted as VAT Business Posting Groups/VAT Product Posting Groups when you assign the appropriate Posting Groups and Business Posting Groups to a customer, vendor, item, or resource.
For more information, visit:
Nastavení daně z přidané hodnoty - Business Central
Use of refundable VAT for trade between EU countries/regions
Some companies have to use refundable VAT when doing business with other companies. For example, this rule applies to purchases from EU countries/regions and sales to EU countries/regions.
Note
This rule applies when doing business with companies that are registered as VAT payers in another EU country. If you do business directly with consumers in other EU countries or regions, you should contact your tax authority for the relevant VAT rules.
Tip
By verifying that the company is registered as a VAT payer in another EU country, use the EU VAT number verification service. The service is available for free in Business Central. For more information, please visit the VAT ID Verification section.
Purchases from EU countries/regions
If you post a purchase from a vendor in another EU state/region, VAT must be calculated using the rate that applies in your country. The VAT amount must be calculated at both input and output.
To correctly calculate VAT on purchases from EU countries/regions, you should:
In the VAT Posting Setup, set up a combination of VAT Business Posting Group and VAT Product Posting Group, where VAT Calculation Type = Reverse Charge (VAT). On this combination, fill in the Purchase VAT Account to which input tax is charged, and Reverse Charge VAT Accountto which output tax is charged.
On EU Supplier Cards Assign
VAT Business Posting Group
VAT Registration No. Vendor
Sales to EU countries/regions
Sales to customers in other EU countries are exempt from VAT. You must report the value of these sales to the EU separately on your VAT statement.
To correctly calculate VAT on sales in EU countries, you should:
In the VAT posting setup, select Posting Group Combinations for purchases from the EU. You can also use these combinations for sales. You need to set up the fields on the Sales tab
to EU customer cards
VAT Bus. Posting Group (VAT Business Posting Group)
VAT Registration No. Customer.
Understanding VAT Rounding in Documents
Amounts in documents that are not yet posted are rounded and displayed to match the final rounding of amounts that are actually posted. VAT is calculated for the entire document, which means that VAT is calculated based on the sum of all lines with the same VAT rate in the document.
Reverse Charge
It is used to set up the reverse charge regime and its reporting. By setting Tariff Numbers and Commodity Numbers, the posting of invoices in the appropriate mode (normal or reverse charge) and their correct reporting in the VAT Control Report is ensured. As soon as the monitoring of the limit of a given commodity is switched on (field Reverse Charge Check in VAT Posting Setup), then when the limit is exceeded (setting in the Commodities code list), a message is displayed that the given invoice must be posted in the mode. The codes reported in the control report are set in the Tariff Numbers code list.
Tariff Numbers – fill in the fields in the table as needed (in accordance with the structure of Annex No. 5 to the VAT Act)
Commodities -> Commodity Setup - fill in the fields in the table as needed (in accordance with the breakdown according to Annex No. 5 of the VAT Act, the limits according to the valid wording of the VAT Act)
Control Statement
VAT entries for the selected VAT Date and Posting Date (according to the general ledger settings) are loaded into the form according to the selected period. To process the VAT Control Report, it is necessary to set up VAT Control Report Sections, Tariff Numbers – see previous chapter, VAT Statement – see Chapter 12.13, Statutory Reporting Setup – see Chapter 12.12 and Advanced VAT Posting Settings – see Chapter 12.6 - Tab VAT Control Report.
VAT Control Report Sections - Fill in as needed, or according to the valid wording of the VAT Act
Field Group By It has the following options:
Document No. – the system will use the system to group (sum) the amounts for one line according to the internal document number (used for sections in which sales are reported).
External Document No. - the system will use it to group (sum) the amounts for one line according to the internal document number (used for sections in which purchases are reported).
Section Code – the system groups (sums) all items falling into the specified section (used for sections intended for reporting purchases and sales up to the limit set in the VAT Act, the limit is set in the system in the Statutory Reporting Setup table – > the VAT Control Report tab)
Sales List Statement
The recapitulative statement is used to report sales to the tax authorities in EU (European Union) countries. Pursuant to Section 102 of the VAT Act 235/2004, the taxpayer is obliged to submit a VIES Declaration. The recapitulative statement must be submitted electronically to the tax office.
The functionality of the VIES Declaration enables:
Set up statistical reporting with general reporting settings.
Select combinations of VAT Business Posting Groups and VAT Product Posting Group to include in the EC Sales List.
Keep history of recapitulative statements.
Enter all the information required for the electronic submission of the file.
Suggest lines for recapitulative statements.
Support correction reports.
Export data to a file for electronic filing.
In the table Statutory Reporting Setup On the VIES Declaration tab, it is possible to enter the basic data for the creation and export of the VIES Declaration, see VIES Declaration. Chapter 12.12 below.
In VAT Posting Setup For combinations of VAT Posting Groups that enter the SH, check the box in the Sales tab Sales list (VIES Sales). If purchases are to be included in the SH, the box is checked in the Purchases tab VIES Purchase.
Statutory Reporting Setup
The settings in this table are used when compiling and generating VAT, KH, SH, and Road tax statements.
Bookmarked General and Address Specification to set up the company's registration information.
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 the Representative) 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 the Company Representative (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) 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.
Both numbers can be found by generating a working xml file of the form, e.g. VAT, from the Tax Portal. In the text, it is the number c_ufo and c_pracufo.
Fields Tax Authority No., Court Authority No., and Registration Date
It is not mandatory to fill it in.
In the VAT Statement (VAT Statement) 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 the VAT Control Report) 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 the Sales list (VIES) 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.
Company Representatives
Select the
icon, enter Statutory Reporting Setup, and then select the related link.
In the Statutory Reporting Setup, on the Representative tab, select a number sequence in the Company Official Nos. field.
After you set up the number sequence, select the
On the Company Officials list, select the New button.
Enter information as needed
Employee No.
First Name
Last Name
Job Title
Phone No.
Email (E-mail)
After creating the necessary shortcuts, close the overview.
Setting Up VAT Statements
Tax authorities can change their VAT accounting requirements. You can use the VAT Statement Templates and VAT Statement Names to prepare the currently valid VAT Statements.
You can find information on how to set it up here:
Set Up a VAT Statement - Business Central | Microsoft Docs
VAT Statement Template Setup
You can use VAT Statement Templates to set up the print output of the VAT Statement and to set up the XML output.
Name
Specifies the name of the VAT statement template that you are about to create.
Description
Specifies a description of the VAT statement template.
XML Format
Specifies the XML format for VAT reporting. Select a format from the available options:
DPHDP3
Allow Comments/Attachments
Specifies the option to allow or not allow comments or attachments. Attachments/comments are then exported to an XML file in the "Other attachments" section – either as a file in a supported format or as a loosely written unformatted text attachment.
Comments and attachments are entered on the VAT Statement Names. If the check mark is cleared on the VAT Statement Templates, the system will delete the existing comments and delete the comments.
VAT Statement Report ID
Specifies the VAT statement report that is printed when you click the Print button () of the VAT statement. From the available reports, select report No. 11769 VAT Statement CZ.
Setting VAT Statement Names
Each VAT Statement Template can have one or more VAT Statement Names. If the Tax Office issues a new tax return template, you can create a new name for the VAT statement and define new lines for this statement. This allows you to maintain a history of your VAT statements from previous years.
To view the report names, click Related-> Template -> Statement Names.
The title bar of the window shows the Name and Description of the template. The window contains fields to set:
Name
Specifies the name of the VAT statement.
Description
User description of the VAT statement
Comments
Displays the number of comments entered. By clicking on the number, the notes can be displayed.
Attachments
Displays the number of attachments entered. By clicking on the number, the list of attachments can be displayed.
Notes and attachments can only be entered if the Allow Comments/Attachments field is checked on the VAT statement template.
A new comment can be entered using the Comments option. And here it is also possible to delete an existing note.
A new attachment can be specified using the Attachments and Import options.
Setting Up VAT Statements
VAT statements allow you to calculate VAT totals for a specific period, such as monthly or quarterly. To calculate the base and tax amounts, you must define statement lines. To view the VAT statement, search either for VAT Statement or from VAT Statement Templates -> Statement Names -> Edit VAT Statement.
Lines are numbered in the background, the Line No. is assigned automatically by the system. The user fills in the following fields:
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.
Tip
It is recommended to have one part in the VAT statement using the Type VAT Entry Totaling and the next section below using the Type Account Totaling to check the amounts drawn from the table VAT Entries (VAT Entries) compared to the amount of General Ledger Entries. You can also use a report for this purpose VAT Financial Reconciliation (G/L – VAT Reconciliation).
Overview of new features in the VAT Statement:
Added Statutory Reporting Setup with general settings for VAT reporting.
Added two new line operations in the type field (Row division and Series multiplication).
Added settings for VAT from prepayments.
Filter VAT entries for VAT statement according to the EU triangular trade regime. This division is necessary because triangular trade (intermediary - 1 debtor) in the EU must be conducted on separate lines.
Print a VAT statement with a new option to round calculated amounts in the VAT statement to whole values.
Filter dates based on VAT Date using VAT Period.
Filter data for older posted VAT declarations.
Other types of VAT statement – Regular, Follow-up, Additional – according to Section 43 Part 1 of the VAT Act 235/2004), the taxpayer may submit an additional VAT report
Export the VAT statement to a .xml file.
Add comments and attachments to export for the tax office.
Preview VAT Statement
You can verify the correctness of the VAT Statement settings after posting the documents in the Preview of the statement.
Select VAT Statement, and then Preview.
Enter a date filter to limit the listing to a specific period. For more information about how to customize a page to display a date filter, see Sorting, Searching, and Filtering List.
You can select different options to specify the type of VAT entries to include in the statement.
On the lines where the field Type contains VAT Entry Totaling You can display a list of VAT Entries by clicking on the amount in the Column Amount.
With personalization, you can display additional fields in rows on the VAT Entry. For example, an unrealized base amount and an unrealized VAT amount if you're using unrealized VAT.
Set up VAT attributes
Dial VAT Attributes can be viewed from VAT Statement Template -> Related -> Template -> VAT Attribute Codes
The dial is supplied by SEY and it is not recommended to change it. A list of codes for mapping data from VAT Statement lines to an XML file is set up in the code list.
The code list contains the following fields:
Code
code that will be assigned on the line of the VAT Statement (VAT Statement)
Description
Code Description
Code XML (XML Code)
mapping to XML file when exporting VAT Statement
Mass Change of VAT Rate
VAT rates are subject to change depending on local legislation. Any change to VAT has an impact on the data in Business Central, regardless of whether the VAT rate is reduced, increased, or deleted. VAT is associated with many entities in Business Central, such as customers, vendors, items, resources, item charges, or G/L accounts. Changes in VAT rates usually occur at a certain date, from which you will have to change VAT settings, posting groups, etc. New sales and purchase documents will be created with the new VAT rate.
This function cannot be used for changes to posting groups in the OC Financing module! If you are interested in changing the posting groups in Financing Contracts, Financed Objects, Payments Calendars and other settings and documents, the function must be extended as a customer adjustment.
Change of VAT Rate
Change of VAT Rates
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 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.
Understanding the VAT Rate Transfer Process and Limitations
The VAT Rate Change tool performs VAT rate conversions for master dates, journals, and orders in a variety of ways. In the selected master data and documents, they will be updated to the new VAT Product Posting Group and possibly to the new General Product Posting Group. If the order has been fully or partially delivered, the delivered items will maintain the current General Product Posting Group or VAT Product Posting Group. A new order line will be created for the undelivered items and will be updated to match the current and new VAT posting groups or VAT product posting groups. In addition, the assigned item charges, reservations, and item tracking information will be updated accordingly.
On order lines, the unit price will be updated for all lines of the Item and Resource types if you use prices including VAT. For other line types, you can use the settings to decide whether the unit price should be updated.
There are several areas that the tool does not convert, namely:
Sales or purchase orders and invoices where shipments have been posted. These documents are posted using the current VAT rate.
Advance invoices. If tax documents were posted to the advance invoices, there will be a difference between the VAT that was paid in advances and the final invoice. The VAT rate changer skips these documents and you'll need to update them manually.
Credit notes.
VAT Rate Change Setup
Set up new VAT and general posting groups as needed, including new combinations in VAT Posting Setup and General Posting Setup.
Select the
Bookmark Master Data Incorrect translation CZ from MS Fixed Price Calculation
For the OC area, it is possible to use the settings in the fields:
Update G/L Accounts
Specifies which kinds of posting groups should be changed in the G/L accounts. The options are:
VAT Product Posting Group
General Product Posting Group
Both.
None (No)
Account Filter
The selection of accounts for changing the posting group can be limited by a filter
Update Gen. Prod. Post. Groups
Specifies whether to change the default VAT Product Posting Group on the General Product Posting Group. The options are:
VAT Product Posting Group
No (No)
Bookmark Journals
On this tab, you can set in which journals you want to change the set up posting groups. For the OC area, the following settings can be considered:
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:
Update Sales Documents
Update Purchases Documents
Update Reminders
Update Finance Charge Memos
At the same time, you can use the fields for purchase and sales documents in the Ignore Status on Sales Docs and Ignore Status on Purch. Docs.) Set whether to update all existing sales and purchase documents regardless of status, including documents with a status of Released.
Bookmark Unit Price Incl. VAT (Unit Price Incl. VAT)
Because changing the rate on purchase and sales document lines will change the amounts including VAT, you need to set up on this tab for which line types you want to update unit prices. For the OC area, you can set up an update especially for lines with a general account (the field Update Unit Prices for G/L Accounts) or with fixed assets (field Update Unit Prices for Fixed Assets)
Note: Unit prices on Item and Resource type lines will always be updated.
Conversion Setup VAT Prod. Posting Groups
Select the
Afield From Code Enter the current posting group. Afield To Code Enter a new posting group.
Conversion Setup Gen. Prod. Posting Groups
Proceed in a similar way to change the general posting group. On the VAT Rate Change Setup page, select Conversions of General Prod.Posting Group (General Prod.Posting Group Conv.).
Afield From Code Enter the current posting group. Afield To Code Enter a new posting group.
Transfer Posting Groups
Conversion
When all settings are ready, in VAT Rate Change Setup, on the General tab, turn on the Perform Conversion field. Make sure that the VAT Rate Change Tool Completed field is turned off.
To convert, choose an action on the ribbon Convert.
Result
Field VAT Rate Change Tool Completed is automatically checked when the conversion is complete.
In the VAT Rate Change Log Entries are The results of the conversion are recorded, where you can review the changes.
On the items, the check box is selected Converted and in the Converted Date v displays the date the transfer was made.
Pre-Conversion Test
You can test this conversion before you transfer your posting groups. To do so, Turn off field Perform Conversion and choose an action on the ribbon Convert.
During a trial conversion, it is created VAT Rate Change Log Entrieswhere the field Converted and fields Converted Date are empty. An error message is also written in the Description field.