Use this function to extract values for a VAT declaration using an existing VAT form created in the VAT form function. After you have extracted and validated the declaration, you can generate the file to submit to your tax authority.

This function is exclusive to the VAT framework process.

You can extract values in Simulation or Actual mode.

Simulations can be run for a VAT entity, for all or a single company, or for all or a single site. Values display in the Simulated value column in the VAT to declare and Detail by company grids. Each new simulation overwrites the previous.

Actual extractions can only be run for the VAT entity.

VAT reference date

The reference date for VAT declaration extractions and all related processes, including journal entries and automatic journals, is defined by the DCLVATDAT - Date for tax declaration parameter (CPT chapter, VAT group) value. This can be the accounting date or the document date.

The VAT date can be updated in the Journal entries function as long as the journal entry to be updated has not been included in an actual declaration.

Print codes

If you set up a print code linked to one or more reports for the VAT form, you can select a report from the Print button, List option. This is useful if your legislation requires multiple VAT return reports.

Before you begin

  • You can only use an Active VAT form.
  • You must set up a VAT entity even if you are submitting for a single company.
  • You can set up VAT entry groups to facilitate VAT box management.
  • Values are extracted based on the VAT boxes setup (GESVTB).

Using an offline form

You can create a VAT return and extract values using an offline VAT form.

  • For British VAT declarations, you do not authenticate with HMRC and you cannot submit directly using an offline form. You need to enter start and end dates. These values are defaulted in the VAT on debit and VAT on payment blocks.
  • VAT year and Period are not required extraction criteria.
  • In the VAT to declare section, the following fields do not display: Due date, Version, Last submission and URL.
  • Extract, Validate, and Control still apply. The Submit action is disabled.
  • When you extract in Actual mode for an offline VAT return, you are warned that the declared VAT amounts in the journal entries are updated and cannot be modified.

For British declarations only

  • You must be signed up with the HMRC Making Tax Digital website to submit your declaration.
  • See the Making tax digital how to guide for more information.
  • You can submit directly to the HMRC website from this function in online mode only.
  • If the return uses an offline form, the authentication with HMRC on Create is deactivated and the Submit action is not available. You cannot submit a return using an offline form.
  • After you Submit your declaration, you must check the status to ensure that it was accepted by HMRC without errors. Check the Results screen to see if there are errors. If so, you must address those errors, revalidate, and resubmit.

For Belgian declarations

  • You cannot submit directly to eAdmin (a stand-alone product by Sage).
  • Click Validate then click Submit to generate the tax file and save using the DCLVATBEL export template.
  • You can regenerate the form as often as necessary by clicking Submit each time.

VAT framework

The VAT framework includes dedicated functions designed to facilitate calculating and validating VAT returns and generating the VAT preparatory report. For some legislations, you can submit directly from the VAT returns function. For specific legislations, there is a preset structure for VAT boxes and tax file generation that conforms to the respective tax laws. There is also a generic VAT declaration that can be customized for legislations not part of the framework.

Refer to the legislation how to guides for specific information.

Within the VAT framework, the company legislation and the VAT declaration process are separate.

Example

A company with a Belgian legislation may need for one of its sites to register for French VAT and to extract VAT on this site according to French fiscal authorities’ rules. You can do this by defining a dedicated VAT setup where the VAT declaration is set to DCLVATFRA and the legislation company is set to BEL.

This setup needs to contain the VAT boxes required by French fiscal authorities according to the 3310-CA3 declaration (as defined in standard setup for DCLVATFRA+FRA) and the corresponding mapping rules (with the document types and tax codes used in the Belgian site). And it has to be run on the VAT entity containing the site to declare in France.

In addition, the standard setup DCLVATBEL+BEL can be run on the VAT entity containing the sites of the Belgian company, except the site to declare in France.

Declarations included in the framework

The list of declarations that can take advantage of the VAT framework continues to grow. Additions are mentioned in the Sage X3 Release notes.

If your country/legislation is not yet included in the framework, you can use the Generic VAT declaration (DCLVATGEN) and manually set up VAT boxes and the VAT form.

Legislation presettings are delivered independent of the VAT reporting framework setup. A legislation presetting can include a dedicated VAT box structure, but that does not imply that you can use the remaining functions within the framework.

Building the declaration structure

Except for the VAT boxes function, these functions are exclusive to declarations that are part of the framework. See the respective online help for each function for detailed information.

VAT boxes (not exclusive to the framework)

Use this function to create the VAT box structure for the declaration. If you select DCLVATGEN, you must select a legislation and manually create the required VAT box structure.

For all VAT declarations using the VAT framework. When setting up VAT boxes, the VAT box codes defined here must be the same when setting up the VAT form. This consistency must be respected for the automatic extraction of data for submission in the VAT returns function.

VAT entry groups (framework only)

Use this function to create an entry type group for a given legislation when setting up VAT declarations. In the VAT boxes function, you can use the entry group code for detail VAT boxes on a single line rather than entering multiple lines for detailed entry types. Entry type groups share the same Tax code + Tax management + Tax allocation combination.

VAT entities (framework only)

Use this function to create and manage VAT entities for a single or multiple companies or a single or multiple sites. VAT entities enable you to define distinct VAT returns at the site level.

VAT form (framework only)

Use this function to set up the VAT form for a specific legislation. You will use this form to create VAT returns. You can reuse the same form for different years, different VAT entities, etc. The VAT box codes defined for the VAT form must be consistent with the VAT boxes setup.

You can also use this function to enter a print code that links multiple VAT return reports that you can access from the VAT returns function.

Extracting data and validating a declaration

Currently, only DCLVATBRI submits declarations to the British tax authority (HMRC) directly from the VAT returns function. For all other legislations, the VAT returns function extracts the data and generates a file or report that you need to submit manually to the respective tax authority.

VAT returns (framework only)

Use this function to set up and generate the VAT declaration for a VAT entity. You can extract data in simulation or actual mode. In simulation mode, you can extract for one or multiple companies or one or multiple sites. You can also run the preparatory report.

VAT return extraction

Use this function to extract data for multiple VAT entities in simulation or actual mode.

VATRETURNS (framework only)

This report can be accessed from the VAT returns function for simulated or actual extraction. It replaces the preparatory report functionality in the DCLVATBEL, DCLVATBRI, and DCLVATFRA functions.

Prerequisites

SEEREFERTTO Refer to documentation Implementation

Screen management

Header

VAT declaration number (field VATENTNUM)

This field automatically displays the VAT declaration number when you create a new VAT return and cannot be modified.
VAT form (field VATFRM)

Enter the number for the VAT form created in the VAT form function (GESVEF). Only active forms can be used.
field DSPOFFLINE

This indicates whether the current form is offline or online.
field DSPONLINE
Description (field DESTRA)

This field displays the current VAT form description and cannot be modified.
Status (field STA)

This field displays the VAT return status:

In progress – You can modify or delete a declaration in progress.

Validated – You cannot modify or delete a declaration with this status. You must validate the VAT return before you can submit.

Submitted – The declaration was submitted to HMRC.

Completed – After clicking Check status: There are no errors in the declaration and it was accepted by HMRC.

Rejected – After clicking Check status: There are errors in the submission and HMRC did not accept the declaration. Click Results to view the errors to be addressed and resubmit.

Tab Extraction criteria

Block number 1

Declaration (field VATFNC)

This field displays the declaration for the current VAT form and cannot be modified.
Legislation (field LEG)

This field displays the legislation for the current VAT form and cannot be modified.
VAT entity (field CODVATGRP)

Enter the code for an existing VAT entity.
Head member (field CPY)

This field displays the company code for the Head member.

If the Head member is a site, the site code also displays.
field HEAFCY
Company tax ID number (field CRN)

This field displays the tax ID for the Head member, if relevant.

If the country, such as Belgium, Spain, France, Italy, Poland, or Portugal, has a control script, the format control is enforced on this field or the EU VAT no. field.
EU VAT no. (field EECNUM)

For the VAT entity, this field displays the EU VAT no. for the Head member and cannot be modified.

If the country, such as Belgium, Spain, France, Italy, Poland, or Portugal, has a control script, the format control is enforced on this field or the Company tax ID field.
Additional tax identifier (field ADLTAXID)

For UK businesses, you can use this field to enter a VAT registration number that is more than nine digits. Note that only the EU VAT no. is used for submission to HMRC.

VAT year (field VATDCLYEA)

Enter the year for the declaration.

When you enter the year, you are prompted to authenticate with HMRC. Click Yes to enter your credentials on the HMRC website, which opens in a new window. After you enter your HMRC User ID and Password and Grant Authority, the new window closes.

If you select No and do not authenticate, you cannot complete the VAT return.

You cannot modify this field after you create the VAT return.
VAT periods (field FLGDCL)

After authenticating with HMRC, click the Calendar icon to select the period for the declaration. In the window that opens, select the line for the desired period.

You cannot modify this field after you create the VAT return.
Start date (field DCLSTRDAT)

Enter a date that reflects the start date for the VAT return. This is not the validity start date for the setup but must fall within the validity time frame for the VAT form.

You can modify this date for a declaration that is still In progress.
End date (field DCLENDDAT)

Enter a date related to the Starting declaration date. This is not the validity end date for the setup but must fall within the validity time frame for the VAT form.

You can modify this date for a declaration that is still In progress.
VAT return type (field VATRTNTYP)

The VAT return type is automatically determined by the VAT period selection:

  • Monthly
  • Quarterly
  • Yearly
Period (field PERKEY)

The period key value is generated automatically when you select the VAT period and cannot be modified.

This value is submitted to HMRC.
Log (field TRCFLG)

Select this checkbox to view a log file of the submission.
Off declaration detail (field DETDCL)

Select this checkbox to include off declaration details in the extraction.

VAT on debit

Launch VAT on debit (field VAT)

This checkbox is selected or not based on the VAT period selection.

You can modify this value after you Create the VAT return, but after you Validate, no other modifications are possible.
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)

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).
Include unextracted entries (field INCUNXENT)

Select this checkbox to include entries that were not extracted for a previously submitted return and that are prior to the current declaration start date.

Starting from (field EXTSTRDAT)

Enter a date to include unextracted entries from this date forward. This date must be before the declaration start date.

VAT on payment

Launch VAT on payment (field VATPAY)

This checkbox is selected or not based on the VAT period selection.

You can modify this value after you Create the VAT return, but after you Validate, no other modifications are possible.
Matching start date (field STRDAT2)

This field displays the start date based on the VAT period selection. This includes journal entries whose matching dates fall within the matching start and end dates.

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

You can modify this value after you Create the VAT return, but after you Validate, no other modifications are possible.
Matching end date (field ENDDAT2)

This field displays the end date based on the VAT period selection. This includes journal entries whose matching dates fall within the matching start and end dates.

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

You can modify this value after you Create the VAT return, but after you Validate, no other modifications are possible.
Due date until (field DATPCE)

This field displays the due date based on the VAT period selection.

Journal entries with due dates prior to or equal to this date are extracted.
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.

Generation criteria

Generation (field TYPGEN)

The current generation type is Actual.

You can run a simulation preparatory report in DCLVATBRI to review amounts before you Extract values.
All companies (field ALLCPYSIM)

In simulation mode only, you can select this checkbox to include all companies.

This option does not apply to actual mode because an extraction in actual mode can only be run on the VAT entity.
Company (field CPYSIM)

In simulation mode only, you can select this checkbox to include a single company.

This option does not apply to actual mode because an extraction in actual mode can only be run on the VAT entity.
All sites (field ALLFCYSIM)

In simulation mode, you can select this option to include all financial sites in the extraction.

In actual mode, you can only run the extraction on the VAT entity.
Site (field FCYSIM)

In simulation mode, select a site depending on the VAT entity setup.

Tab VAT posting

If VAT posting is active for the VAT entity, the fields in this section are available. If not, the Posting status is Not managed and these fields are disabled.

General settings

Journal entries for VAT returns are posted using the VAT automatic journal. The journal entries offset the total VAT amount calculated for each company in the return into the Tax to disburse or the Tax credit accounts. The accounts are defined in the Accounting code lines function for site and company entities.

The calculation and posting are made by considering VAT amounts extracted on detail boxes of the VAT return.

For a VAT entity with multiple companies or sites, you need to define the intercompany accounts used for journal entries in the Intercompany accounts mapping function, as well as the reciprocal accounts defined in chart of accounts setup.

Settings for manual adjustments

If required, manual adjustments can create an additional journal entry line for the Head company of the VAT entity.

To manage adjustments, you need to complete the following:

1. In the VAT form function, you need to select VAT boxes for the VAT due box, which holds the total submitted VAT amount due, and the Deductible VAT box, which holds the total submitted VAT deductible amount. Note: If you do not define these VAT boxes, adjustments are not taken into account and the related VAT adjustment balance is not posted.

2. In the Accounting code lines function, you need to define the adjustment account in the VAT adjustment balance modifier. This can be set at the company and/or the site level.

Posting status (field PSTSTA)

This field displays the posting status: To be posted or Posted.

If VAT posting is not managed for the VAT entity, this field displays Not managed and the remaining fields in the VAT posting section are not available.

Accounting date (field ACCDAT)

Enter a date to post the VAT journal entry.

Default description (field DEFDES)

You can enter a description for your reference.

Simulation (field PVWFLG)

When you select this checkbox and click Post, you see a preview of the posted amounts in a temporary table. The general ledger is not updated.

Remember to clear this checkbox to generate the actual VAT journal entries.

VAT journal entries (field VISUICO)

After posting in actual mode, click this button to view a list of the VAT journal entries. For each line, select Entry from the Action icon to drilldown to the Journal entry function.

Note: The VAT adjustment balance is posted if you completed the necessary steps described here.

Tab VAT to declare

Grid Form

VAT boxes (field VATBOX)

This field displays the VAT box code defined in the VAT form and cannot be modified.
Description (field DESLIN)

This field displays the VAT box description defined in the VAT form and cannot be modified.
Submitted value (field VATAMT)

This column displays the value to be submitted to HMRC. It automatically includes any amount in the Adjustment column.

For VAT boxes B1 to B5, the UK fiscal authority requires that the submitted value is rounded to two decimal places.

For VAT boxes B6 to B9, the UK fiscal authority requires that the submitted value is rounded to the lower whole amount. For example, if the Extracted value for B8 is £7,537.86, the Submitted value changes automatically to £7537.00.
Extracted value (field VATAMTDCL)

This column displays the exact amounts from the DCLVATBRI preparatory report run in simulation mode. The decimal amounts are based on the company currency.
Adjustment (field VATAMTADJ)

This column displays any adjustments to the extracted value. The value in this column is automatically added to the Submitted value.

The Extracted value does not change.
Simulated value (field VATAMTSIM)

This column displays the simulated VAT amounts based on your extraction criteria. These values are overwritten with each new simulation.

Block number 2

Currency (field AMTVATCUR)

This field displays the currency defined for the current VAT form and cannot be modified.
Decimals (field DEC)

The field displays the number of decimals allowed for the current VAT form and cannot be modified.
Due date (field DUEDAT)

This field displays the due date based on the VAT period selection.

Journal entries with due dates prior to or equal to this date are extracted.
Version (field VERSION)

This field displays the current version number and cannot be modified.

The version number increases each time you click Submit.
Last submission (field LASSBM)

This field displays the most recent submission date.

This date automatically changes to the current date when you click Submit.
Last export date (field LASEXPDAT)
Export file name (field FILEXPNAM)
Adjustment

Use this action to adjust the extracted value on the line. This opens a new window where you can add one or more adjustments to this VAT box.

Information for the Head member displays by default. You can select another company within the VAT entity to enter adjustments for that company or you can enter adjustments at the Entity level. Each time you enter an adjustment, the Submitted value for the VAT entity is updated in the VAT to declare grid. For the group member, you can see that the Submitted value is updated in the Detail by company grid when that company is selected. The Extracted values do not change.

You can manually enter a value and a comment. The User and Date created fields are entered automatically for each adjustment. Each time you enter an adjustment, the Submitted value is updated accordingly. The Extracted value does not change.

After you Validate the VAT return, you can no longer add, change, or remove adjustments.
VAT on debit details

After extracting data for a VAT return in actual or simulation mode, you can view the list of documents related to the VAT box. For each document in the Details grid, you can click through to the accounting document.

The grid includes a column that indicates the posting status for each line.

You can refine the results by amounts, entry type, dates, site, etc.

Due to technical limitations, if there are more than 32,000 lines, the Details grid is empty. Use the search criteria to refine the results.
VAT on payment details

After extracting data for a VAT return in actual or simulation mode, you can view the list of documents related to the VAT box. For each document in the Details grid, you can click through to the accounting document.

You can refine the results by amounts, entry type, dates, site, etc.

Due to technical limitations, if there are more than 32,000 lines, the Details grid is empty. Use the search criteria to refine the results.
RTZ adjustment

Tab Detail by company

Block number 1

VAT box (field DSPBOX)

Select a VAT box number to see only amounts for that VAT box. You can also enter a company in the Company field to see those VAT box amounts for that company. You can leave this field empty to see all the VAT box amounts for a selected company. Or, enter a VAT box and leave the Company field empty to see the VAT box values for each company.

By default, information for the Head company displays.
Company (field DSPCPY)

Select a company to view all VAT box amounts for that company. If you also enter a VAT box number in the VAT box field, the grid only shows values for that VAT box. You can leave this field empty and only enter a VAT box number to see the VAT box values for each company. By default, information for the Head member displays.

Member sites (field FLGCPYFCY)

Click this icon to view the member sites for this VAT entity.

field DSPFCY

Grid

Company (field VFECCPY)

The fields in this grid display the VAT to declare information for the selected company and/or selected VAT box combination.

VAT boxes (field VATBOX)
Description (field DESLIN)
Extracted value (field VATAMT)
Adjustment (field VATAMTADJ)
Simulated value (field VATAMTSIM)
field SIMFCY
Adjustment
VAT on debit details

After extracting data for a VAT return in actual or simulation mode, you can view the list of documents related to the VAT box. For each document in the Details grid, you can click through to the accounting document.

The grid includes a column that indicates the posting status for each line.

You can refine the results by amounts, entry type, dates, site, etc.

Due to technical limitations, if there are more than 32,000 lines, the Details grid is empty. Use the search criteria to refine the results.
VAT on payment details

After extracting data for a VAT return in actual or simulation mode, you can view the list of documents related to the VAT box. For each document in the Details grid, you can click through to the accounting document.

You can refine the results by amounts, entry type, dates, site, etc.

Due to technical limitations, if there are more than 32,000 lines, the Details grid is empty. Use the search criteria to refine the results.

Specific actions

Click this action to extract the VAT declaration values, either actual or simulated. A log file displays detailed information such as the query numbers for VAT on debit and/or VAT on payment.

You need to extract in actual mode before you can validate.

The extraction is based on the VAT box setup.

When you click Extract, the VAT to declare grid displays the extracted amounts. In simulation mode, only simulated values display. The Extracted value column populates when you extract in actual mode.

If you need to make any modifications or adjustments, such as making changes to the VAT boxes setup (GESVTB), you need to select Extract again.

After a declaration has been validated, you can no longer modify it in any way, and you cannot Extract again.

Extraction errors

The VAT extraction/calculation processes company A and stops on the 1st error detected (on site y).

An error is generated for site y that must be corrected. A rollback is done on the updates of site y.

In the VAT to declare grid only the amounts from site x are taken into account.

If the error on site y is corrected and the process is re-executed, an error is generated for site z that must be corrected. A rollback is done on the updates of site z.

In the VAT to declare grid only the amounts from sites x + y are taken into account.

Click this action to validate the VAT return. Only click this action if you are satisfied with the Extracted values and other information. If you need to make any modifications or adjustments, you need to Extract again before validating.

You need to extract in actual mode before you can validate.

After you validate a declaration, you can no longer modify it in any way. This applies to online and offline forms.

Belgian legislation: When you validate a control is automatically run on the VAT amounts. See the Control action help for details.

British legislation: Your only option is to Submit after validating an online form.

For Belgian declaration (DCLVATBEL)

Click this action to generate the tax file for eAdmin submission using the DCLVATBEL export template. You are prompted to confirm this action and then you can select a location to save the tax file.

The VAT return status changes to Completed. You can regenerate the file as many times as necessary by clicking Submit. Regenerating the file does not recalculate the values.

For British declaration (DCLVATBRI)

Click this action to submit your declaration to HMRC. You can only submit a validated, online VAT return.

When you submit, a log file is returned by HMRC and the status changes to Submitted. This does not imply that the submission was accepted.

You need to click Check status to confirm if the submission was accepted or rejected.

For British declarations only (DCLVATBRI)

Click this action to verify that HMRC accepted the submission. If accepted, the status changes to Completed. If not, the status changes to Rejected. In that case, you need to address any errors and then extract, validate, and resubmit.

Click this action to review the VAT form settings for this declaration. Because there is a declaration for the form, you cannot modify it.

For British declarations only (DCLVATBRI)

Click this action to view confirmation that you have submitted your declaration or to view errors if HMRC rejected the submission.

Click this action to review the report for VAT on debit and/or VAT payment amounts and to check the log information.

Click the Print button on a line view and reprint the associated VAT return reports that includes extracted amounts and the VAT box codes. The available reports are based on the print code settings for the VAT form.

If you re-extract the data after making modifications, new reports and log files are available. Previous reports are not deleted.

This applies to Belgian VAT returns only (DCLVATBEL)

A control is executed automatically when you validate a return or you can control the VAT amounts on demand before validating to check for errors.

If there are any errors, a message displays with the number of errors. A log file displays errors codes and descriptions. Codes 1-7 are blocking errors that are highlighted in red in the log file.

Non-blocking errors generate a warning message asking you to continue with the validation or not.

The rules and errors messages are determined by the Belgian fiscal authorities, which you can access via the links below.

Rules in French

Rules in Dutch

This action is available to post an automatic journal entry for a VAT return if you have completed the required setup for the VAT entity.

After extracting in actual mode and validating the return, use this action to generate journal entries for the VAT return that offset the total VAT amount calculated for each company into Tax to disburse or Tax credit accounts. This creates a VAT line with the amount for each invoice.

For the Head member, the total amounts for the tax accounts are posted.

For member companies, an intercompany line is generated that initiates the transfer to the net VAT.

If there are any errors, all entries are rolled back and no journal entries are created.

If you have selected the Simulation checkbox, when you click Post, you can see a preview of the entries to be generated in a temporary table. No entries are created in the general ledger and the VAT journal entries button is disabled.

For Canadian declarations

When the VAT return status is Completed or Validated, click this function to review the submission details such as TAXUID, document number, accounting date and tax amount.

For Canadian declarations

You can select this function to generate a log file that displays the following data for online submission mapping:

  • TaxUIDs not used
  • Duplicates
  • Missing VAT boxes and related detailed information

Error messages

The only error messages are the generic ones.

Tables used

SEEREFERTTO Refer to documentation Implementation