vat-declaration

VAT Declaration

In accordance with the legislation of the Republic of Azerbaijan, the VAT reporting period is considered a calendar month. A taxpayer must submit the VAT declaration to the tax authority no later than the 20th of the month following the reporting period for each reporting period and pay tax to the state budget by that time. When the taxpayer is liquidated (termination of its activity), the VAT declaration must be submitted to the tax authority within 30 days, no later than the 20th of the following month. In this case, the tax period covers the period from the beginning of the reporting period to the day when the taxpayer ceases to operate.

Tax authorities can, and do, change their requirements for posting VAT. That's why the most efficient option of setting up VAT Declaration is to use VAT statements. VAT Statement templates and VAT statement names can help you prepare for upcoming changes and make a smooth transition to the new requirements. You can use VAT statement templates to set up different Reports when choosing to print the statement. Each VAT Statement Template can have multiple VAT Statement names which in turn define the calculations, and you can create a new VAT statement name when requirements change. For example, one name might calculate VAT for this year based on the current requirements, and another might calculate VAT based on requirements for next year. Names are also a way to keep a history of VAT statement formats, for example, so that you can look back to see how you calculated VAT in previous years.

To define a VAT statement

VAT statements let you calculate your VAT settlement amount for a certain period, for example, a month.

1. Enter VAT Statements in the search, and then choose the related link.
2. Choose the Name field, and then choose New on the VAT Statement Names page.
3. Fill in the required fields. Usually you want to have a setting for each VAT Bus. Posting Group / VAT Prod. Posting Group combination. For Row numbers, it does make sense to use equivalent numbers or codes as in your official VAT Statement. Hover over a field to read a short description.

Specific issues related to Azerbaijan VAT declaration

1. VAT posting set up shall be based on requirements of Azerbaijan Tax Legislation
2. Vendors shall be created with indication of correct VAT registration type via selection of correct VAT Business Posting Group and VAT Product Posting Group.
3. Customers shall be created with indication of correct VAT registration type via selection of correct VAT Business Posting Group.
4. Vendors shall be created with indication of correct VAT registration type via selection of correct VAT Business Posting Group.
5. Items shall be created with indication of correct VAT registration type via selection of correct VAT Product Posting Group.
6. GL accounts shall be created with indication of correct VAT registration type via selection of correct VAT Business Posting Group and VAT Product Posting Group.
7. VAT statement lines shall always have allocation of VAT entries sych as VAT18, VAT0, EXEMPT, Full VAT, No VAT.

To preview a VAT statement

After you define a VAT statement, you can preview it to make sure it meets your needs. It is best practice to have one section in the VAT Statement using Type VAT Entry Totaling and another section below using Type Account Totaling to reconcile the amounts based on the VAT Entry table compared to the amount on the G/L Accounts. You can also use the G/L - VAT Reconciliation Report for this purpose.

1. Choose Preview.
2. Enter a date filter to limit the statement to a specific period. For more information about how to customize the page to show the date filter, see Searching, filtering, and Sorting Data.
3. You can select various options to specify the type of VAT entries to include in the statement.
4. On the lines where the Type field contains VAT Entry Totaling, you can see a list of VAT entries by choosing the amount in the Column Amount field.
5. You can use personalization to show more fields in the lines.

Details on VAT Declaration

Information on the cover page of the VAT Declaration is filled in based on the information filled in Company Information under General and Localization fast tabs.

VAT registration numbers of vendors and customers shall be added in the Vendor cards and Customer cards under the Invoicing fast tab, in the VAT Registration No field.

Country codes of vendors and customers shall be added to the Vendor cards and Customer cards under the Address and Contact fast tab, in the Country/Region Code field.