British declaration

Use this process to generate two preparatory reports for the VAT declaration that include analysis by tax code for the VAT payable and the VAT debit with details by matching group for VAT on payments (if this is managed) and by entry for the VAT on debits.

You can run this report in Simulation mode only for a single company or all companies. You cannot run the report for a VAT entity (group of companies.)

The VAT management that loads this process requires a rigorous setup as indicated in the prerequisites.

SEEWARNING The only entry lines taken into account for the extraction process and for printing the preparatory reports are those entered for the main general ledger type of the company being processed.

Prerequisites

SEEREFERTTO Refer to documentation Implementation

Entry screen

Enter the following criteria to run preparatory report, which can only be run in Simulation mode. In Simulation mode, declared amounts are not updated.

Generation criteria overview

Company

You can print the report for the operations of a single company or for all companies of a given legislation.

VAT on debits, VAT on payments

The preparatory report for the declaration of VAT on debits or VAT on payments prints as two separate reports. You can print one report or both.

The fields in the Tax on payment block are active if the DCLVATPAY- Manage VAT on collections (CPT chapter, VAT group) general parameter is set to Yes.

Date range

Enter a date range to filter data for the reports. The dates taken into account for this declaration depend on the payability of taxes.

Other

You can also filter the report data by site, entry detail or Detail by matching group.

Request number

The sequence number for this function uses the request number defined in the Sequence number assignment function (GESTCA) at the folder level only.

Print-outs

The process generates the following:

A log file for the entries that does not include collections such as payments not due, unmatched payments, etc.
When running the process for VAT on debits and VAT on payment, only one log file is generated for both VAT types.

Preparatory reports for the VAT declaration

Prior to V11, you can run

DCLVATENC1: Tax on collection
DCLVATDEB1: VAT on the debits

V11 and higher:

DCLVATBOXPAY1: Tax declaration / payment
DCLVATBOXDEB1: VAT declaration / payment (reprint)

If you ran the VAT declaration before upgrading to V11, you can print the reports again using DCLVATDEB2 and DCLVATENC2. To reprint new declarations done in a prior version, you need to use reports DCLVATBOXDEB2 and DCLVATBOXPAY2.

These reports are identified by the request number (DLV and DVP counters).

Re-launching the VAT declaration process with the same criteria is not interpreted as a request to reprint the report but is used to process the matchings or recordings carried out after a first generation within the same period.

To reprint the DCLVATDEB2 or DCLVATENC2 reports, go to Reports > Prints/group > Financials > Tax management > Others. Enter the request number to be reprinted.

To reprint the DCLVATBOXDEB2 or DCLVATBOXPAY2 reports, go to Reports > Prints/group > Financials > Tax management > France. Enter the request number to be reprinted.

Field descriptions

Criteria

All companies (field ALLCPY)

Select this check box to run the VAT process for all companies.

When the process is run, the query number must be the one indicated in the Sequence number assignment function (GESTCA) at the folder level.

If a VAT box set up for a particular legislation does not exist in theVAT boxes function (GESVTB), the process cannot run.

Company (field CPY)

Enter a company to run the VAT process for that company only.

When running the process on a single company, the query number must be the one at folder level.

If a VAT box set up for a particular Company/legislation combination does not exist in the VAT boxes function (GESVTB), the process cannot run.

Legislation (field LEG)

You need to enter a Legislation when the All companies check box is selected. If the All companies check box is not selected, this field is inactive.

When you enter a single company, the legislation automatically displays for that company.

All sites (field ALLFCY)

Select the All sites check box to analyze all sites for a particular company. If the All companies check box is selected, this check box is also selected by default and cannot be cleared.

Site (field FCY)

Enter the Site for a particular company. This field is mandatory if the All sites check box is not selected.

Tax on debit

Launch VAT on debit (field VAT)

Select this check box to run the process for VAT on debit.

Declaration start date (field STRDAT)

The declaration start and end dates are used to filter the accounting entries by accounting dates or by original document dates, depending on the DCLVATDAT - Date for tax declaration parameter value (CPT chapter, VAT group).

Declaration end date (field ENDDAT)

Entry detail (field DETVCR)

Select this check box to print the Entry detail part of the report. This option is initialized by the Entry detail criteria on the DCLVATBOXDEB1 report. Before printing you can clear this check box.

Tax on payment

Launch VAT on payment (field VATPAY)

Select this check box to run the process for VAT on payment.

Matching start date (field STRDAT2)

Enter or select Matching start and Matching end dates to select journal entries with matching dates that fall within this range.

Journal entry lines posted on accounts whose Tax management is set to Prepayment account are selected even if the journal entry line is not matched.

Matching end date (field ENDDAT2)

Enter or select Matching start and Matching end dates to select journal entries with matching dates that fall within this range.

Journal entry lines posted on accounts whose Tax management is set to Prepayment account are selected even if the journal entry line is not matched.

Due date until (field DATPCE)

Journal entries with due dates prior or equal to this date are selected for the VAT process.

Auxilliary postings only (field ECRAUX)

Select this checkbox to restrict the entries that trigger the VAT declaration on payments to subsidiary records exclusively. The process eliminates as "payment" the matched accounting entry lines on the general accounts. For example, for the inter-currency reciprocal accounts.

Detail by matching group (field DETAIL)

Select this check box to print the Entry detail part of the report. This option is initialized by the Matching group detail criteria on the DCLVATBOXPAY1 report. Before printing you can clear this check box.

Generation

Log file (field TRCFLG)

Select this check box to create a log file. When you run the process simultaneously for VAT on debit and for VAT on payment, a single log file is displayed for both VATs.

The log file includes:

Running criteria
Start and end times
VAT query number
Any blocking errors encountered, highlighted in red
Warning message related to off declaration VAT box

Messages could include:

A blocking error message: When an extracted journal entry line on a VAT on debit / payment entry type with debit / payment tax code does not match any combination in the VAT boxes function (GESVTB): Detail VAT box type or Off declaration VAT Box.
A WARNING message: When an extracted journal entry line matches an Off declaration VAT box type.

Off declaration detail (field DETDCL)

Select this check box to include all the extracted lines that match an Off declaration VAT box type in the log file.

This check box is only available if the Log file check box is selected.

Generation (field TYPGEN)

You can only run the report in Simulation mode.

The preparatory report includes amounts for all the sites of the company(s), whether blocking errors are returned or not, and according to the data created in the declaration table.

The actual VAT declaration can only be run in the VAT returns function.

Details for VAT on payments

Principles for determining the amounts to be declared

A matching group is a triplet: control account, business partner, match. It can include several payments and several invoices.

The amounts to be declared are determined:

1) By the matching group whose matching date falls between the required date range and all the entries that make up the group

2) By searching in each matching group the triggering entries whose due date is prior or equal to the entered due date

3) By determining whether the payment amount equals the sum of the amounts associated with a business partner account, or matchable account, of the triggering entries in the matching group

Determining the tax-included and VAT basis
Search on all the entries of the matching group (irrespective of the entry type) of those lines posted to an account whose Tax management is Not subjected.
Tax code on payments
Total by tax code

4) By determining whether the VAT to be declared equals determined basis amounts

Limited to the payment amount
Minus the VAT to declare amounts declared on the entry line and the VAT on the debits to be paid

If the VAT on payment amount to be declared is less than the matching group VAT on payment amount (for partial payments), the amounts to be declared are allocated proportionally to each group entry associated with a VAT on payment tax code.

Launching the VAT on payment declaration process can be carried out:

In Simulation mode: the Declared tax fields for the entry file are not updated.
In Actual mode: the Declared tax fields for the entry file are updated.
(Actual mode does not apply to DCLVATBRI.)

Special settings

Discounts and VAT on payment

The discount destination must have the following settings in the Payment attributes function (GESCDA):

For Account structure, select Account <=> BP.
Select the Separate journal check box.
For Tax management, select Tax recovery.

The discount entry must be posted to a non triggering entry type.

The discount accounts must be set up as follows:

665000 : Discounts granted
Subject – Sales collected
VAT on payment tax code

765000 : Discounts obtained
Subject – Purchase deductible
VAT on payment tax code

Entering the payment must be carried out for the net discount amount. The discount line must be allocated on the invoice and must be entered with a VAT on payment tax code.

Example:

Recording of the invoice FAK-DEL0001-019	5,000.00	1,030.00	6,030.00
Payment TRG-DEL0001-012:
- 20% of the invoice	1,000.00	206.00	1,206.00
- With a discount of 5%	50.00	10.30	60.30
That is a net payment of	1,145.70

						Amount in currencies	1,145.70
Dest.	Type	Entry	Site	Cur	Amount	Amount posted	TAX
ENC	INV	FAC-ASN0001-024	ASN	EUR	1,145.70	1,145.70
ENC	INV	FAC-ASN0001-024	ASN	EUR	1,145.70		005

Prepayment and tax declaration on payment

The entry designed to save the prepayment posting must be a triggering entry type. The prepayment entry can be either triggering or not.

The discount accounts must be set up as Discount accounts. They must be different from the customer or supplier control accounts with Tax management set to Not subjected.

The VAT account to be adjusted must be set up with Tax management set to Not subjected.

The tax codes for the VAT account and the prepayment account must be set up with Tax management set to VAT on payment.

Cases not managed

Multi-business partner entries

When an invoice has several business partners (or equivalent), you cannot identify the excl. tax and VAT amounts associated with each business partner. It is impossible to manage the VAT on payment.
SEEWARNING

This could be possible for a single-phase payment transaction for a bank deposit with grouping on deposit slips.

Multi-business partners invoices

When an invoice has several business partners (or equivalent), it is not possible to identify the excl. tax and VAT amounts associated with each business partner. It is impossible to manage the VAT on payment.

Late payments

Following a payment by check, the tax is payable when cashing the check. In practical cases, the tax is settled on posting the check in the bank. If the check is not credited, the payment cannot take place.

It is possible, on entering the late payment, to reconsider the VAT that was initially declared.

In this case, the business partner account of the late payment is matched with the initial payment and the corresponding invoices. During the next VAT declaration, it is possible to declare the tax in the reverse order.

Posted statements

Posting an invoice statement results in the following:

An entry (REL) to the debit and credit of the business partner account impacted by the total amount of the statement
Matching all the open items on the statement with the credit of the entry

The invoices are then considered as paid by the VAT process.

Partial payment posted on several invoices

When a partial payment is posted to several invoices, the VAT calculation algorithm does not take into account the amounts posted to each of the invoices. This information is not available in the posting file.

For instance:

Entry for an invoice of 500,000 103,000 603,000 VAT 20.6%
Entry for an invoice of 1,000,000 55,000 1,055,000 VAT 5.5%

Partial payment of 542,600 EUR posted with 120,600 EUR to the first invoice and 422,000 EUR to the second invoice, that is:

On the first invoice: 100,000.00 20,600.00 120,600
On the second invoice: 400,000.00 22,000.00 422,000

A VAT to be declared of: 42,600.00

VAT declaration on the 31/01/2000

The payment amount is distributed proportionally by the processing over the 2 invoices that leads to the following VAT amount to be declared:

FAC-007 : 542,600 * 603/1,658 = 197,338.84 that is 33,707.96 of VAT
FAC-007 : 542,600 * 1,055/1,658 = 345,261.16 that is 17,999.40 of VAT

51,707.36

Capital letter match between an invoice and a credit note

When the conditions below exist: Because there is no payment in the match group, these journal entries are not considered in the VAT on payment extraction process. No VAT amount is declared in the VAT reports, which is normal.

An invoice is matched to a credit note with a capital letter match code and there is no other journal entry matched to the invoice and credit note.
The matched invoice and credit note contain tax codes where the VAT type is VAT on payment.

This also implies that the VAT to declare amounts in the journal entry line are not updated and they remain empty.

As a result, for these journal entries, the CONTVAENC - VAT on payment control report always displays the lines on the VAT accounts with a VAT to declare amount equal to zero, as if the VAT declaration was missing on these lines.

Special tax rule for the deduction on author rights

Invoicing document containing:

Two lines corresponding to a VAT base and the associated output VAT, with a payment tax code
Two other lines corresponding to a VAT basis and to the associated input VAT, with a payment tax code.

The entry is subject to an uppercase matching with a triggering entry for the sales tax/money collection.

During the first run of the VAT declaration/money collection declaration process in Actual mode, the declared amounts are correct. However, the VAT process is not meant to be run again on that same uppercase matching group. Such an invoicing document should not be entered.

Specific actions

Error messages

Generic messages

In addition to the generic error messages, the following messages can appear during the entry :

Function not implemented for this company

This message is displayed if the BRIVAT-VAT United Kingdom parameter (LOC chapter, BRI group) is set to No.

Tables used