VAT Declaration Setup
All VAT payers are required to submit a tax declaration that reflects their calculations with the budget. The VAT declaration has a prescribed format defined by the legislation and must be submitted within specified deadlines.
In Business Central, you need to perform certain setups to ensure the proper generation of the VAT Declaration.
Setting up VAT Declaration Lines
- Click the
button to open the Search function and enter VAT Declaration Line Setup, then click on the
relevant link. - On the VAT Declaration Line Setup page, you need to configure each VAT declaration line by filling in the following fields:
| Field | Description |
|---|---|
| Code | Enter the code for the VAT declaration line. |
| Description | Provide the name of the VAT declaration line. |
| Formula Text | Specify the formula used to calculate the values for the declaration line. Detailed information on how to define formulas is provided below in this article. |
| Comparison | Indicate whether only positive or negative differences should be displayed. For example, if you select Positive, the value in this line will be populated only if the calculation of the corresponding field yields a positive result. |
| Exclude from Calculation | Specify whether this line should be included in the VAT declaration or Appendix calculation. |
| Comparison by VAT | Check this field if the comparison should be applied only to VAT amounts. |
| XML Tag Base | Specify the corresponding declaration tag used as an indicator for generating XML export file data (for column A). |
| XML Tag VAT Amount | Specify the corresponding declaration tag used as an indicator for generating XML export file data (for column B). |
| Clarifying XML Tag Base | Specify the corresponding declaration tag used as an indicator for generating XML export file data if the declaration type is Amendment. |
| Clarifying XML Tag VAT Amount | Specify the corresponding declaration tag used as an indicator for generating XML export file data if the declaration type is Amendment. |
| Difference XML Tag Base | Specify the corresponding declaration tag used as an indicator for generating XML export file data for differences. |
| Difference XML Tag VAT Amount | Specify the corresponding declaration tag used as an indicator for generating XML export file data for differences. |
| Line Type | Specify the type of document to which this line setup applies. |
| Neg. Amount Line | Check this field for a VAT declaration line with a negative VAT amount that will be carried over to the next reporting period. |
| Registration Limit Line | Check this field for a VAT declaration line that indicates the registration limit for VAT. |
Configuring Formulas for VAT Declaration Lines
- On the VAT Declaration Lines Settings page, go to the Formula Text field and click the
button.
This will open the VAT Decl. Line Formulas window. - A formula can consist of multiple lines. To define a formula for calculating a VAT Declaration row, you need to fill in the following fields:
| Field | Description |
|---|---|
| Operation | Select the arithmetic operation to be performed on the formula elements. |
| Element Type | Choose the source from where the data will be taken. It can be from declaration Lines, attachments, tax invoices, etc. |
| Element | Specify the specific element depending on the selected element type. |
| VAT Business Posting Group | Specify the VAT business group if the element type is Purchase VAT or Sales VAT. |
| VAT Product Posting Group | Specify the VAT commodity group if the element type is Purchase VAT or Sales VAT. |
| Data Formula | Enter the date formula if you need to include data from previous periods in the current declaration. For example, to fill in line 16.1 based on line 21 of the previous month's declaration, you should use the formula 1M. |
| Registration No Filter | You can specify the taxpayer's ID to include or exclude data from the calculation. For example, the formula *<>300000000000&<>500000000000&<>600000000000 =* excludes data for the specified taxpayer's IDs. |
| Application Amount Field No. | Specify the field name in the Declaration Attachment for selecting tax base amounts. Only applicable if the element type is Attachment 1, 5. |
| Application VAT Amount Field No. | Specify the field name in the Declaration Attachment for selecting VAT amounts. Only applicable if the element type is Attachment 1, 5. |
| Table No. Filter | Specify the table number in the Declaration Attachment for data selection. Only applicable if the element type is Attachment 1, 5. |
| VAT Document Type | Specify the document type for data selection: tax invoice or adjustment calculation. |
| Details By Privilages | This flag is used to populate the attachment. If set, the relevant Lines with exemption codes will be filled based on certain operations in the tax documents where the exemption code is filled. |
| Rounding Precision | Specify the rounding interval for amounts in the row. |
| Column Tabl.1 App.7 | Select the column of Table 1 in the declaration attachment that is filled during the annual VAT recalculation. The data from this column will be used for the row calculation. |
| Privileges Code | You can specify the exemption code that will be used for data selection to fill in the report row. |
| Registration Confirmed | Specify the flag to be considered when selecting data to fill in the report row. |
Configuring XML Versions for Declaration and Attachments
The VAT Declaration along with its attachments is submitted electronically to the regulatory authority. Therefore, you need to configure the current XML versions. Follow these steps:
- Click the button to open the Search function and enter Tax Setup. Then click on the relevant link.
- On the Tax Setup page, go to the XML Version tab and specify the current XML versions for VAT Declaration and Attachments.
Helpful Links
Creating VAT Declaration
Annual VAT Recalculation
VAT Accounting Setup