Prerequisites

La "DAS2" field of the supplier record must be checked.

The "Service provider" field can be:

  • loaded further to the creation of the service provider record, if the service provider code is different from the supplier code.
  • empty, but in this case, a service provider code with the same code as the supplier code must exist in the service provider file.

For the fee accounts to be taken into account by the extraction, they must be flagged "DAS2" (1099 file) and for each account identified as such, the service provision nature must be stipulated. This is an important point since the program creates the bases to be declared according to the "DAS2 nature" type (fees and vacations, commissions and brokerages, discounts, etc.).  The fee bases are declared tax-incl, but those of type "net VAT on copyrights" are reduced by the amount of the deduction and those of type "deduction at source on profits and non-commercial revenues" are declared net (tax-incl amount - Deductions).

Example of fees for the "deductions at source on profits and non-commercial revenues":

  • Copyright invoices of 1000 USD on 01/11/02. The payment to the beneficiary of 666 USD (deduction rate at source of 33.33%) on 01/12/02.

Invoice

 

11/1/2002

Debit (USD)

Credit (USD)

466

Author

 

 

666

651

Workload

 

1,000

 

442

Deduction

 

 

334

Payment

 

1/2/2003

 

 

466

Author

 

666

 

512000

Payment

 

 

666
  • 2002 declaration: 666 copyrights and 334 deducted at source
  • 2003 declaration: Nothing
  • These amounts must be declared in company currency (EUR).
  • The deduction at source account must be identified by the 1099 indicator, with a 1099 nature "Tax deduction rate at source" (see the documentation on the management of general accounts)

Example "VAT on copyrights":

Invoice for authors rights 1055 EUR the 01/12/03 (where the VAT on authors rights = 5,5%)

  • Retention of 4.7% VAT, applicable on 1000 EUR Ex-tax in the invoice.
  • Payment of 1008 EUR the 20/12/03
  • 2003 declaration: 1055 EUR for Authors rights and 47 EUR retained at the source of the VAT (this latter being entered from the invoice).

446

AUTHOR01

 

1008

651

 

1,000

 

4456

 

55

 

4452

 

 

47

 

  • the amount declaration algorithm, even though declared with Tax incl, searches for the Ex-tax amounts and based on the tax code recalculates a Tax incl amount.
  • thus, following the example shown above, to recover the amounts to be carried by the declaration, Safe X3 carries out the following calculations:

1. Search within the matching group, for the invoice (1055 EUR Tax incl)

2. Search for the fee type and the Ex-tax fee amount: 1000 EUR

3. Recalculates the fee amount sent to be declared by application of the Ex-Tax amount * [(Retained at VAT 4.7%)+(VAT 5.5%- Retained 4.7%)], that is: 1000 * (1,047 + (1,055 -1.047) =1055.

4. The difference between the VAT on the invoice and the retention at source (5.5-4.7) is the value that will appear in this setup: 0,8.  

5. 3 fee lines are extracted in this specific case:

  • the ex-tax line: 1,000
  • the applied VAT: 55
  • the deduction: 47

The entry types must be flagged as follows:

  • The type(s) of document(s) for the fees invoices must have the 1099 field checked.
  • The type(s) of document(s) for the payments must have the VAT on collections field checked.

Two management rules must be complied with:

  • a single service provider account by invoice document
  • The copyrights and inventors rights must not be posted with other types of fees.

Activity codes

The following activity codes (sorted by type) may have an impact on the way the function operates :

  DAS :  DAS2

General parameters

Authorizations

An authorization can be granted for this function to limit the processes to a company or a site.

Other prerequisites

Tables used

No table is used by this function.