VAT boxes
Use this function to manage the VAT box setup for various declarations and company legislations.
This function contains two types of data:
The VAT boxes section defines the structure of the VAT preparatory report, using title boxes or calculation boxes, based on the accounting entry details or on the total.
The Detail section contains combinations of values to be matched with the entry lines so they can be extracted and considered in the VAT declaration calculation.
VAT framework
The VAT framework includes dedicated functions designed to facilitate calculating and validating VAT returns but does not include direct submission from Sage X3, except for DCLVATBRI. For specific legislations, as noted in the table below, 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.
Within the VAT framework, the company legislation and the VAT declaration process are separate.
VAT declaration and company legislation
You can use one of the predefined VAT settings for the VAT declarations and company legislations described below. Or, you can use a generic VAT declaration, DCLVATGEN, to define the VAT box setup for any other VAT declaration different from the standard ones.
Depending on the needed VAT declaration process, the VAT boxes presetting can be used either through the VAT framework capabilities, or outside and independently of it.
The standard VAT box settings are intended to be used as templates. You can use them as-is or as a baseline to modify according to a specific customer’s folder and related customization.
| VAT declaration | Description | VAT framework | Delivered setup by company legislation |
|---|---|---|---|
| DCLVATBEL | Belgium VAT box template | YES | BEL |
| DCLVATBRI | UK VAT declaration | YES | BRI |
| DCLVATFRA | French VAT box template | YES | FRA |
| DCLVATSWI | Swiss VAT box template | YES | SWI |
| DCLVATGEN | Generic VAT box setup | YES | None |
| DCLVATARE | UAE VAT box template | NO | ARE |
| DCLVATAUS | Australian GST/BAS labels | NO | AUS |
| DCLVATBHR | Bahraini VAT box setup | NO | BHR |
| DCLVATSAU | Saudi VAT box template | NO | SAU |
| DCLVATZAF | South African VAT box template | NO | ZAF |
Additional information on VAT declarations
The Belgian VAT declaration (DCLVATBEL) only applies to the VAT on debit, in accordance with requirements of the Belgian fiscal authorities. Hence, only On debit type tax codes can be entered for Belgian VAT declaration, DCLVATBEL.
VAT on payment tax codes cannot be defined and extracted, regardless of the DCLVATPAY – Manage VAT on collections parameter (TC chapter, VAT group) value.
The British VAT declaration (DCLVATBRI) applies to the VAT 100 form with its 9 boxes as required by HMRC.
The VAT box setup for the British VAT declaration and the BRI company legislation does not contain any tax codes with an On payment VAT type. They are not part of the standard delivery and not managed in the VAT box setup. If this type of tax code is needed, you can create and add them in the VAT box setup for DCLVATBRI.
Note: The DCLVATBRI functionality includes a specific feature regarding the file submission process. It cannot be modified and follows all the steps required by HMRC relative to the Making Tax Digital (MTD) program.
The French VAT declaration (DCLVATFRA) is to be used for the French declaration n°3310-CA3. Both VAT on debit and VAT on payment can be defined and managed with this declaration.
The VAT box setup for the French VAT declaration and the FRA company legislation contains the main VAT box details. Depending on the type of business, additional tax codes and detail rules might need to be added.
The generic VAT declaration (DCLVATGEN) can be used for any other VAT declaration other than the current standard VAT processes either within the VAT framework or not. There is no standard setup. You need to do this manually.
The Australian VAT declaration (DCLVATAUS) applies to the Goods and Services Tax (GST) and Business Activity Statement (BAS) submitted to the Australian Tax Office (ATO) and based on general ledger entries. After setting up the proper VAT box settings, you can extract GST data and manually enter additional BAS values in the GST reporting periods function (GESGSTPER).
The United Arab Emirates VAT declaration (DCLVATARE), the Bahraini VAT declaration (DCLVATBHR), the South African VAT declaration (DCLVATZAF) and the Saudi VAT declaration (DCLVATSAU) apply to the corresponding country tax authority requirements. Ready-to-use VAT box setups are delivered for these declarations and the corresponding company legislations. Related extractions can be run from the DCLVATARE, DCLVATBHR, DCLVATZAF and DCLVATAUS functions.
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.
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.
Refer to documentation Screen management
Header
| Declaration (field VATFNC) |
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Enter or select the code for the VAT declaration, which includes a set of programs and scripts that meet the declarative requirements for each country's fiscal authorities. For example, the DCLVATBRI VAT declaration complies with the MTD program and allows you to submit directly to HMRC from the VAT returns function (GESVFE). You can select DCLVATGEN for a generic VAT declaration. In this case, you need to manually set up the VAT box structure. |
| Company legislation (field LEG) |
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Enter or select the legislation code of the company. When launching the VAT declaration extraction on a VAT entity (within the VAT framework) or on a company (outside the VAT framework), the VAT box setup needs to be compliant with the legislation of the head company as defined in the VAT entity or of the given company. As a result, when a given VAT declaration needs to be run on VAT entities or companies of different legislations, several VAT box setups must be entered for the same VAT declaration and these legislations. Example: DCLVATFRA+FRA and DCLVATFRA+BEL When the French VAT declaration must be run on a French VAT entity and also on a Belgium VAT entity. For Australian VAT declaration only: Affiliated companies submit GST and BAS data as a group, defined in GST groupings. One member of the group must be designated as the Head entity, representing the group as a single entity for tax purposes. |
| Description (field DESVATFNC) |
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Enter the long title of the VAT setup in the connection language. By default the short title, the long title or the column header of a data are recorded (on creation/update) in the connection language of the user.
A user who logs on with this language will view the short description, long description or column header in their connection language if a translation exists. Otherwise, these descriptions will be available in the folder language.
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Tab VAT boxes
Use this section to:
- Reference the various types of Detail and Total VAT boxes to be calculated and define the titles to be displayed in the VAT declaration preparatory reports. The setup referenced in the VAT box table shows the structure of the VAT declaration preparatory reports.
Note: The actual preparatory report structure can vary by legislation. For example, the UK VAT 100 requires 9 boxes. - Define additional technical VAT boxes. When an extracted line must not be aggregated within a detail line of the VAT, it needs to be redirected and considered in an Off declarationVAT box type.
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 (GESVEF). This consistency must be respected for the automatic extraction of data for submission in the VAT returns function (GESVFE). This requirement concerns Detail and Total VAT box types. If a detail VAT box defined here is not found in the VAT return (no code at all), the corresponding calculation is made in DCLVATBOX* reports and updated in journal entries in the Declared tax field but not at all updated in the corresponding VAT return.
In addition, the box type must be the same for a given VAT box between the VAT box setup and the VAT form. For Total VAT box types, the values entered in the Formula and Formula condition fields must be the same.
Grid
| VAT box (field VATBOX) |
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Enter a code for the VAT box. This code can contain up to five alphanumeric characters using uppercase letters. This field is mandatory. The box code must be unique to a Declaration + Company legislation setup. To modify or delete a box code that is referenced in the Detail section (Detail or Off declaration box types), you must first delete the combinations linked to this box code in the Detail section. Note: Consistency controls for deleting and modifying Title, Detail, and Total VAT box code types are enforced as follows:
When saving the setup, the VAT boxes are not sorted in any specific order. They are displayed in the order in which they were entered in the VAT declaration preparatory reports and in the extracted VAT return. The VAT return is based on the VAT form setup that must be consistent with the VAT box setup. For the Belgian VAT declaration (DCLVATBEL), a flat file setup is provided and meets the requirements of the component which converts the VAT file into the format expected by the Belgian federal administration. The defined box codes must be two-character, numerical box codes that match the Belgian VAT codes (01, 02, etc.). |
| Long title (field DESTRA) |
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Common title of the current box code. This title can be translated. The long title is displayed in the recap section of the VAT preparatory report (the box code is not displayed). |
| Short description (field SHOTRA) |
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The short description replaces the standard description when display or print constraints require it. By default the short title, the long title or the column header of a data are recorded (on creation/update) in the connection language of the user.
A user who logs on with this language will view the short description, long description or column header in their connection language if a translation exists. Otherwise, these descriptions will be available in the folder language.
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| Type (field TYPBOX) |
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There are four VAT box types: Title - Select this type to manage the various titles and subtitles that must be included in the VAT preparatory report. No amount is calculated or displayed for this box type. Title VAT box types are not present in the Entry detail section of the Belgian and French VAT preparatory reports, but displayed in bold and in a gray banner of the recap section. Detail - Select this type to reference the box on the Detail tab. Detail VAT box types are used to indicate in which box extracted entry lines and their amounts have to be added and totaled. Amounts are then detailed in the preparatory report and their total by VAT box is displayed in the recap section of the report.
Total - Select this type to calculate total amounts for Detail VAT box types. This total is carried out by the Belgian and French VAT declaration processes, taking into account the VAT box codes referenced in the Formula field. Off declaration - Select this type of reference for tax codes posted in the processed entries for which no VAT must be declared on the Detail tab. The Belgian and French VAT declaration function does not process entry lines that include tax codes defined for an Off declaration VAT box type and it does not return them as errors. However, you can view the detail of entries linked to an Off declaration VAT box type in the log file for the Belgian and French VAT. On debit or On payment types are selected in the VAT Type check box in the Tax rate function (GESTVT). Example of an Off declaration situation: Consider a Belgian legal company with a financial site registered in France. The recorded accounting entries of this site use tax codes with no legislation code and French VAT with On debit or On payment rate types. When the Belgian VAT declaration is processed in the Belgian company, the entries of the French site must not be declared. The setup of one or several Off declaration box types can then be used to specify the list of tax codes to be excluded from the declaration. Modifying the type: You can only modify the type if the box is not referenced on the Detail tab. To modify the type, first delete the combinations of Detail or Off declaration VAT box codes on the Detail tab. |
| Formula (field CLCFOR) |
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The Formula field is only available for Total VAT box types. Enter the box codes of which you want the amounts to be added or withdrawn. Use the following syntax:
If you add a minus sign, as shown below, the amount is withdrawn:
You can only enter:
When running the VAT declaration process, VAT boxes are calculated according to their entry/display order on the VAT boxes section. This field is not mandatory and it can be entered after all the Detail and Total VAT box types have been created. VAT declaration specifics For VAT declarations within the VAT framework, the calculation rules entered in the Formula and Formula condition fields in the VAT boxes (GESVTB) and VAT form (GESVEF) functions must be the same so that amounts displayed in VAT preparatory reports and VAT returns are identical. For Australian VAT declaration (DCLVATAUS), this field is not relevant when extracting GST data. |
| Formula condition (field CNDFOR) |
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The Formula condition field is only active for Total VAT box types and does not depend on a value entered in the Formula field. This condition field can be set to Debit balance, Credit balance, or None. If the condition is None, the Total VAT box is recorded in the table header (DCLVATBOXH), regardless of the calculated value. When Debit balance or Credit Balance is selected, the value is recorded in the table header only if the condition is true. Otherwise, the value is set to zero. For example:
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| Validity start date (field VLYSTRHEA) |
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For reprinting and tracking changes, enter the Validity start date and Validity end date for the current box. These date ranges can only be accessed for Title and Total VAT box types. The Validity end date must be greater than the Validity start date. Dates are not mandatory. Title or Total VAT box types are only taken into account if all or part of their validity period is included within the date range indicated when the Belgian or French VAT declaration is run. This control is enforced differently according to the kind of VAT function that is run.
For Detail and Off declaration VAT box types, the Validity start and end dates are entered directly on the Detail tab. |
| Validity end date (field VLYENDHEA) |
Tab Detail
The table displays Detail and Off declarationVAT box types defined in the VAT boxes section.
For Detail VAT box types
Define one or several value combinations: Enter the tax code, the VAT management of the line account, the allocation type of the account, and the entry type or the entry type group. A journal entry line matching to one of these combination lines is added to the corresponding box.
For Off declaration VAT box types
Enter the tax code only. When running the VAT declaration, no VAT amount is declared in these boxes. This is not regarded as an error and a log detailing the related journal entry lines can be displayed.
If an entry line does not match a combination described in the table, neither in a Detail boxnor in an Off declaration box type, then it is not taken into account in the VAT declaration. The entry line is regarded as a blocking error and detailed in the log file at the end of the process.
Importing Detail section data
You can import data to all lines on the Detail section using the VATBOXD import template. When you import a file, it deletes and then replaces all current data in the grid on the Detail section. If the import fails, the deletion step is not cancelled and all current data on the Detail section is still deleted.
It is recommended to first export the setup and then import it with the setup modifications and additions.
Grid
| VAT box (field VATBOX2) | ||||||||||||||||||||||||
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Enter or select the Detail or Off declaration VAT box code on the VAT boxes section. The same VAT box code can be referenced several times if multiple entry combinations are linked to it. When saving the setup, VAT box codes are sorted automatically according to the order of the boxes listed on the VAT boxes section. In the case of multiple combinations linked to the same VAT box code, the combinations are sorted in the following order: Tax management, Tax allocation, and Tax fields.
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| Short description (field DES) | ||||||||||||||||||||||||
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This short title is entered for the VAT box on the VAT boxes tab. |
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| Tax management (field FLGVAT) | ||||||||||||||||||||||||
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This field is only active for Detail VAT box types. Select the account VAT management rule so that once an entry line is selected during the VAT declaration process, if its account is associated to this same tax management, the line and its VAT amount are linked and declared for the current VAT box. |
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| Tax allocation (field VATIPT) | ||||||||||||||||||||||||
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This field is only active for Detail VAT box types. Select the Tax allocation rule that matches the account on the extracted entry line. Once an entry line is extracted during the VAT declaration process, if the account is associated with this same tax allocation rule, the entry line and its VAT amount are declared for the current VAT box. |
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| Tax code (field VAT) | ||||||||||||||||||||||||
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For a Detail VAT box type:
For an Off declaration VAT box type
VAT on debit and VAT on payment are allowed.
This field is mandatory. Note: Additional tax, Special tax, and Local tax types and On debit and On payment types are entered in the Tax type and Invoice tax due fields, respectively, in the Tax rates function (GESTVT).
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| Rule (field VAC) | ||||||||||||||||||||||||
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This field is loaded automatically with the tax rule for entered tax code. |
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| Entry type (field VCRTYP) | ||||||||||||||||||||||||
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This field is only active for Detail VAT box types. The Entry type on a line must be VAT on debit if the VAT code on the line is VAT on debit. The legislation of the Entry type must be empty or identical to the Company legislation field in the header.
The two setup alternatives for boxes are the following (cases 1 and 2): Case 1
Case 2
Case 3
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| Entry type group (field GTEGRPCOD) | ||||||||||||||||||||||||
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This field is only active for Detail VAT box types. It is not mandatory. The entry type group code legislation must be consistent with the legislation entered in the Company legislation field. It must either be empty or identical. This field works together with the Entry type field and are mutually exclusive. This setup allows you to enter one combination rule line instead of multiple lines due to different entry types to consider for the same Tax management + Tax allocation + Tax code setup line. |
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| Sign (field SNS) | ||||||||||||||||||||||||
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This field is only active for Detail VAT box types. The values of the sign are -1 or 1. The sign is the multiplier sign used by all VAT declaration processes when extracting and storing amounts. Depending on its value, amounts are displayed with the sign expected for the VAT box. The sign is initialized by default with the value 1. To determine the final sign of the value, the four following elements are considered in the VAT declaration process:
The four + or - values are then multiplied to define the storage and display sign of the amount in the VAT preparatory report and in the VAT returns, when used. Example:
When Prepayment account is selected for the VAT management field in the Accounts functions (GESGAC), it contains an excluding tax amount. When running the VAT declaration processes, the excluding tax amount is deducted from the tax including amount of the line, with respect to the tax rate of the line tax code. |
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Date ranges are only active for Detail VAT box types. For reprinting and tracking changes, enter the Validity start date and Validity end date of the current combination of values. The validity end date must be greater than the validity start date. Dates are not mandatory. The combination with a Detail VAT box type is only taken into account if all or part of its validity period is included within the date range of the Belgian / French VAT declaration implementation. After you enter the validity end date, the system controls the singularity of the entered combination for the current box code. For a Declaration + Company VAT setup, in a given Detail VAT box, you cannot enter more than one combination of the same value for the VAT management, Tax allocation, Tax code, Entry type, Validity start date, and Validity end date fields. These fields can contain multiple combinations of identical values as long as these combinations are referenced in distinct boxes. Note: For two identical combination lines (excluding dates), the validity dates on the Detail tab are not controlled and can partly or fully overlap, whether or not the combinations belong to a VAT box. During the French or Belgian VAT extraction process, an entry line with a date included in the overlapping period will be taken into account in each considered VAT combination. Note: This control is enforced differently according to the kind of VAT function that is run. When the Belgian VAT or French VAT on debit is run, these validity dates are checked against the starting declaration date and the ending declaration date indicated in the process. On the other hand, when the French VAT on payment is run, these validity dates are checked against the Due date until value: A box is valid and usable if its start date and end date include this due date. This type of setup is used to manage new VAT boxes corresponding to part of an already existing VAT box. Check the consistency of dates to avoid redundancy. |
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Specific Buttons
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Copy |
Use this button to copy the declaration process to another folder. The legislation of the recording being copied must exist in the target folder. |
Error messages
In addition to the generic error messages, the following messages can appear during the entry :
Invalid value
The total formula must contain existing box codes included on the previous lines.
Legislation not managed by the folder
The legislation of the recording being copied must exist in the target folder.
Detail setup to be deleted
You must first delete the combinations of the box code in the Detail tab before you change or delete a box code in the VAT boxes tab.
Box XXX Line XXX: setup already exists Box XXX Line XXX
The combination described for the box on one of the table lines already exists for the same box but on another line.