VAT entities
Use this function to create and manage VAT entities when required by tax authorities to submit VAT declarations as a single, combined file for a set of several companies. A VAT entity can contain only one company.
One company in the entity must be identified as the Head company. Information related to the Head company, such as address and tax number, is used for the VAT entity.
Member companies
- A VAT entity can have a single company. When required for declarations, a single company must be made part of a VAT entity for VAT declarations.
- Only legal companies can be part of a VAT entity.
- The main legal ledger for all entity members must be in the same currency.
- One member of the entity must be designated as the Head company that represents the group as a single entity for tax purposes. The Head company details like address and tax number are used for the VAT declaration.
- By default, an entity is active upon creation and available for VAT declarations.
- You can set an entity to Inactive without deleting the entity.
- If a company leaves the VAT entity, you need to set the entity to Inactive to preserve the entity structure history. You can then create a new entity and set that to Active.
- You cannot delete or modify a VAT entity if a VAT form exists.
Prerequisites
Refer to documentation Implementation
Screen management
Header
Fields
The following fields are present on this tab :
|
Enter a unique code for the VAT entity. This code is then entered in the VAT entity field in the VAT return function. |
|
Enter a description for the entity. |
|
Enter a short description for the entity. |
|
Enter or select a legislation for the entity. The main legal ledger for all group members must be in the same currency. |
|
By default, a newly created VAT entity is Active. You can set the VAT entity to Inactive without deleting the group. If a company leaves the VAT entity, you need to set the group to Inactive to preserve the group structure history. You can then create a new group and set that to Active. |
|
This is a free-text field where you can enter additional information as needed. |
Close
Tab Member companies
Fields
The following fields are present on this tab :
Grid Member companies
|
Enter or select the company code for the member company. Only legal companies can be part of a VAT entity and all members must have the same currency in their respective main legal ledgers. |
|
Select this check box to designate the company on the line as the Head company. Details from this company, such as address and tax number, are applied to the entity. |
Close