Changing VAT box labels

VAT boxes labels for boxes 2, 4, 8, and 9 have been changed and you might want to modify them so that they no longer refer to "EC acquisitions".

Box descriptions are defined both in the VAT boxes set-up function and in the VAT form set-up function. These updates can be performed all at once or progressively over time.

VAT boxes set-up (GESVTB)

Open: DECLARATIONS > Tax management > Others > Setup > VAT boxes

The current VAT boxes set-up for the DCLVATBRI+BRI combination provides boxes B2, B4, B8, and B9 with a label referring to "EC acquisitions".

You can change the long title for these boxes. However, be aware that when you reprint previous VAT declarations related to the pre-Brexit period (using DCLVATBOXDEB2 and DCLVATBOXPAY2 reports), the new labels display instead of the previous ones.

If you want these VAT reports display either pre-Brexit or post-Brexit descriptions, you need to modify the DCLVATBRI+BRI VAT box set-up as follows:

Create new boxes with the relevant descriptions in the VAT boxes section.

In the Detail section:

For the old VAT boxes, update the Valid until date of the lines with a date corresponding to the end date of the pre-Brexit VAT form (see How and when to use VAT forms).
For the new post-Brexit VAT boxes, add the same lines as in the old boxes with a Valid from date corresponding to the Valid until date, plus one day.

VAT Box management is available in version 11 and later. Former versions do not provide the ability to set- to calculate the boxes from the transactions.

VAT form set-up (GESVEF)

Open: DECLARATIONS > Tax management > Others > Setup > VAT form

These changes require you to define and use a new VAT form (GESVEF) with these new labels.

VAT form set-up

The VAT form function (GESVEF) contains a form for UK VAT100 declaration where boxes B2, B4, B8, and B9 have a label referring to "EC acquisitions".

The existing standard form has a validity end date set to 12/31/2020.

A new VAT form with labels in accordance with HMRC requirements needs to be created as shown below.

These boxes must have a code that exactly matches the ones defined in the VAT boxes function. Therefore, if you have chosen not to create new VAT boxes in the VAT boxes function, the ones defined here in the new VAT form need to have B2, B4, B8, and B9 codes instead of BB2, BB4, BB8 and BB9 as in the image above.

This form needs to be Active to be available in the VAT returns function (GESVFE). Due to existing consistency controls, you might need to update the VAT form you are currently using to be able to create, activate, and then use this new post-Brexit VATform.

How and when to use VAT forms

REMINDER

When several VAT forms are defined for the same VAT declaration (DCLVATBRI) and legislation (BRI), consistency controls are enforced as follows:

Only one of these forms can be active.
Valid from and Valid to dates cannot overlap.
When a VAT form is active:
- You cannot modify the form, except for the Active check box.
- You can only make a form inactive if there is no VAT return that has the Status as In progress.

You can prepare the post-Brexit return as Inactive, however you cannot activate it before the completion of the last pre-Brexit period in your live environment. Therefore, different situations can occur depending on your VAT return type:

You still need to use the previous VAT form for pre-Brexit periods.
After the VAT calculation for the last period is completed and the adjustments are entered, the last pre-Brexit VAT return can be validated and submitted.
The related VAT form can be set as inactive and its Valid to date can be moved back to Brexit date - 1, if not already done.
The new post-Brexit VAT form can be set as active and its Valid from date must be changed to the Brexit day.
It can be then used to enter the first post-Brexit VAT return.

Remember, for this document, Brexit day is January 1, 2021.