Basic settings

When installing the standard chart of accounts, there are certain presettings for the tax determination like tax rates, tax codes, VAT numbers and mappings. You must still check these settings and adjust them according to your requirements and business transactions.

Document types

Open: Setup > Financials > Document types

For all document types relevant for German or Austrian tax declarations, select the VAT on debit and VAT on payment check boxes in the Management section.

Only postings with VAT on debit and VAT on payment selected are included in the declaration.

Account settings

Open: Common data > General accounting tables > General > Accounts

Tax accounts

For tax accounts, the tax management settings in the Management section, the Taxes and Tax code control blocks must be set according to the type of the tax account.

  • For regular input or sales tax, select Tax account for Tax allocation.

  • For input or sales tax for taxes originating from intra-community purchases or reverse charged taxes, select EU tax for Tax allocation. This applies to Reverse charge/“Steuerlastumkehr” according to §13 (Germany) or §19 (Austria).

    The tax management setting must match the selection in the corresponding VAT line number matching (see Matching VAT line numbers to tax codes). Otherwise, the tax values will not be completely calculated, (i.e., only VAT base, but no tax amounts). This means that for standard and reverse charge/intra-community tax cases, different tax accounts must be used.

  • For the tax rule, you need to select either a sales tax or an input tax, based on the tax account type.

    • The specific tax types for tax on sales or purchases input tax assets or tax on sales or purchases input tax services should not be used for German or Austrian VAT declarations.

General ledger accounts

For general accounts to which postings with tax are made, the following settings are necessary:

  • Tax management: Subjected
  • Tax allocation: Sales tax or Deductible tax, according to the account type
  • Tax code: the default code from the first field

Based on these settings, the corresponding tax codes are suggested when manually entering postings.

Without this setting, postings are made to these general ledger accounts without tax codes and tax postings. This means that these postings are not included in the VAT declaration.

Use the settings in the Tax code control section to ensure that only certain tax codes are used or excluded.

Managing report lines and turnover types

Open: Declarations > Tax management > Germany > Setup > Report line definitions

Open: Declarations > Tax management > Austria > Setup > Report line definitions

These functions manage the list of existing report line numbers or the codes for the different turnover types in the Recapitulative statement.

The available report line numbers, according to the official VAT declaration forms and the various turnover types for the Recapitulative statement, are managed by these functions.

After installing the German or Austrian legislation, the standard values are already defined. If there are new or changed settings due to legal changes, you need to modify them accordingly.

Report line definitions for VAT declaration

When entering the code in the first column, it is important to use the VAT report line numbers according for the official VAT form.

For Austria, the numbers must have three characters including the leading zeroes.

Report line definitions for the Recapitulative statement

The code entered in the first column is for the turnover type according to the official VAT form.

The code entered in the second column is a required parallel VAT report line, if necessary.

The following entries are available by default:

Germany

Code

Code 2

Description

0

L

Standard sales (goods)

1

S

Sales of services

2

D

Triangular sales

Austria

Code

Code 2

Description

NORMAL

 

Standard sales (goods)

SOLEI

 

Sales of services

DREIECK

 

Triangular sales

Matching VAT line numbers to tax codes

Open: Declarations > Tax management > Germany > Setup > VAT declaration parameter

Open: Declarations > Tax management > Austria > Setup > VAT declaration parameter

In this function, the report line numbers according to the VAT form are matched to the tax codes defined in the system.

For one tax code, several lines with the same or different report lines numbers can be entered. For example, if one value needs to be shown on several different positions on the VAT form or if the base for tax and the tax value need to be entered simultaneously, (e.g., for other tax rates).

Tax management column

Type

Function

Note

Subjected

The tax amount is determined on the base for the tax (determination base). The base is calculated from the posted net amounts.

This is the standard case for sales tax.

Tax account

The tax amount posted on the related tax account is determined and shown on the VAT declaration.

This is the standard case for deductible tax on purchase. This must match the tax management settings in Accounts.

EU tax

This is the tax account, except for EU transactions (counter postings for deductible tax on purchase and sales tax) or Reverse charge tax types.

This must match the tax management settings in Accounts.

Prepayment account

Do not use.

 

Not subjected

Do not use.

 

Tax allocation column
This field refers to the type of tax within the tax code settings. The stand for Germany and Austria is to use the Collected sales and Deductible purchases. In both countries there is no distinction regarding the source of the tax, (sales, fixed assets, etc.).

Report line column
Enter the report line number according to the VAT form. The numbers must have been defined previously.

Start date  and End date columns
Enter a valid date range that can be used when the legal authorities decide to change a report line.

Matching examples

The following examples assume that there is no distinction between the sources of the tax: only one kind of sales (collected) tax and deductible tax on purchase. Otherwise, additional lines with the same report line number but different post tax need to be entered.

Austria only

  • For sales turnovers, an additional report line for a subjected tax and line number 000 must be added in addition to the regular position. This is to ensure that the value is included in the VAT form in position “4.1 Gesamtbetrag der Bemessungsgrundlage.”

Germany and Austria

Domestic sales with regular/reduced sales tax

  • Tax according to the determination base: Type = Subjected, Post type = Collected sales, report line according to the tax percentage.
    DE: 81/86, etc.
    AT: 022/029, etc.

Foreign sales non-taxable

  • Tax according to the determination base: Type = Subjected, Post type = Collected sales, report line according to the tax case.
    DE: 48, etc.
    AT: 011, etc.

EU sales to customers with EU VAT no.

  • Tax according to determination base: Type = Subjected, Post type = Collected sales, report line according to the tax case.
    DE: 41, etc.
    AT: 017, etc.

Sales with reverse charge tax

  • Tax according to determination base: Type = Subjected, Post type = Collected sales, report line according to the tax case.
    DE: 68/60, etc.
    AT: 021, etc.

Deductible VAT on purchase regular/reduced rate

  • Tax according to tax account: Type = Tax account, Post type = Deductible purchases, report line according to tax case
    DE: 66, etc.
    AT: 060, etc.

EEC purchase with deductible VAT regular/reduced rate

  • Line 1 (determination base): Type = Subjected, Post type = Deductible purchases. For the report line, the number of the sales tax side needs to be entered.
    DE: 89/93, etc.
    AT: 072/073, etc.
  • Line 2 (deductible tax account): Type = EEC tax, Post type = Deductible purchases. For the report line, the number of the input tax side needs to be entered.
    DE: 61, etc.
    AT: 065, etc.
  • Line 3 (Austria only): The total amount needs to be declared on the VAT form, Pos. 4.25 additionally): Type = Subjected, Post type = Deductible purchases, line number
    AT: 070 070, etc.

Received goods and services, where the recipient owns the tax (Reverse charge on purchase side)

Germany

  • Line 1: Type = Subjected, Post type = Deductible purchases. For the report line, the number of the sales tax side needs to be entered.
    84/78/73, etc.
  • Line 2: Type = EU tax, Post type = Deductible purchases. For the report line, the number of the tax amount (sales side) needs be entered.
    85/79/74, etc.
  • Line 3 (deductible input tax): Type = EU account, Post type = Deductible purchases, report line
    67, etc.

Austria

  • Line 1: Type = Subjected, Post type = Deductible purchases. For the report line, the number of the sales tax side needs be entered.
    048/044/057, etc.
  • Line 2: Type = EEC tax, Post type = Deductible purchases. For the report line, the number of the tax amount (sales side) needs to be entered.
    082/087/089, etc.

Depending on the type of goods and services, like construction projects, miscellaneous services, real estate, etc., a separate tax rate with matching must be used. If the input tax for the received goods or services is not deductible, you omit the line for deductible VAT.

Germany: Processing the 1/11-prepayment

To correctly process the 1/11-prepayment, you need the following:

  • A dedicated tax code for posting the 1/11-prepayment with a tax rate of 0%
  • The report line number 39 needs to match this tax rate, additional settings: Type = Tax account, Post type = Collected sales
  • Enter this tax code in the account for the 1/11-prepayments because it must be used for posting the actual prepayment. This posting must be done manually.

Matching turnover types to tax codes

Open: Declarations > Tax management > Germany > Setup > Recapitulative statem. param.

Open: Declarations > Tax management > Austria > Setup > Recapitulative statem. param.

These functions map the turnover types according to Recapitulative statement form to the defined tax rates for intra-community purchases. This assignment must be made for each German and Austrian tax rate used for intra-community supplies.

Only tax codes identified as intra-community taxes can be entered.

Table

You can enter several lines for each tax code.

Turnover type column
For selecting the turnover type which is to be matched to the tax code. The turnover types must have been entered previously in the management screen for the turnover types.

Tax rule column
For entering the BP tax rule. The tax rule must be flagged as intra-community.

Country column
For entering the country code which is to be considered as domestic for the BP address. Accounts matching this condition are excluded.

Start date column
Enter a valid start date. If by changing the legal tax rules, there are changes in report lines for the same tax rate, the change to the new report line can be managed by entering a new line with the corresponding start date.