About VAT report configuration

In Visma Net, a VAT report is represented as a table.
Each row of the table holds a accumulated VAT amount or taxable amount calculated on sales or purchases that occurred during the VAT reporting period, or a sum or difference of these amounts.
The number of lines in a particular VAT report may vary depending on the number of taxes you need to report.

To start the VAT report configuration process, you create the required lines in the report by using the Report lines tab of the Reporting settings (TX205100) window, and specify the type of the amount that should be accumulated in each line (a VAT amount or a taxable amount).
The number of the lines is prescribed by the VAT report template from the applicable tax agency.

But you can create additional lines in the VAT report for your personal purposes, for example, to accumulate some VAT amounts that should not be reported to the tax agency but that supervisors want to see.
In that case, you create the line and select the Hide report line check box for that line, so the amount will be accumulated in that line, but the line itself will be excluded from the VAT report during its generation.

After you have created the required lines for the VAT report, you need to create a reporting group or multiple reporting groups by using the Reporting groups tab.
A reporting group is a Visma Net entity that combines one report line or multiple report lines (which you add into the group later) and acts as a link between a particular VAT and these report lines.
Thus, the VAT amounts and taxable amounts calculated based on this VAT in all sales or purchase documents update the lines included in the reporting group. Later, you will specify a reporting group or multiple reporting groups for each VAT.

A reporting group can have one of the following types:

• An Output group is specified for a VAT that must be paid to a tax agency.
• An Input group is specified for a VAT that can be claimed from a tax agency.

The type of reporting group you specify for a VAT depends on the type of the particular tax.
You specify the type of reporting group by using the VAT (TX205000) window as follows:

• For VAT, define an input reporting group for VAT amounts calculated on purchase invoices and adjustments that should be claimed from the tax agency, and an output reporting group for VAT amounts calculated on sales invoices and notes that should be paid to the tax agency.

You can create multiple reporting groups of the same type and associate each tax in the system with a particular reporting group.
Alternatively, you can create just one reporting group of each type (one input reporting group and one output reporting group) and associate multiple taxes with the same reporting group to accumulate the total VAT amount and total taxable amount for a reporting period. Your selected approach depends on the requirements of the tax agency and your needs.

Once you have configured the elements of the VAT report (the report lines and reporting groups), you need to add report lines to each reporting group you have created, and then to associate each VAT in the system with the appropriate reporting group, so that the taxes will be associated with the reporting groups, which in turn are related to some report lines.
Thus, the VAT amounts will be accumulated in the specific lines of the VAT report. Perform these configuration tasks:

1. By using the Reporting groups (TX205200) window, add the required report lines to each reporting group.
   To do this, select the tax agency account for which the VAT report is configured and the reporting group to which you need to add the report lines.
   After that, add the appropriate lines into the group by clicking the Add row button in the table toolbar.
   
   Make sure you have added the correct report lines into the particular reporting group to prevent distributing VAT amounts or taxable amounts into the wrong lines.
2. By using the VAT (TX205000) window, associate each VAT in the system with the reporting group that contains report lines that should be updated by amounts calculated based on this VAT.
   To do this, select the VAT in the VAT ID field, and specify the reporting group in the Reporting group column on the VAT schedule tab.

In summary, the following general steps have to be performed when you set up a VAT report in Visma Net:

1. In the Reporting settings (TX205100) window, start configuring the VAT report by creating the required lines that the VAT report should include.
   For each line, specify the type of amount to be accumulated (VAT amount or taxable amount).
2. On the Reporting groups tab of the Reporting settings (TX205100) window, create reporting groups to combine report lines to be updated by the amounts (VAT or taxable) calculated based on the specific VAT.
   Add the required lines into each reporting group by using the Reporting groups (TX205200) window.
3. In the VAT (TX205000) window, specify the reporting group (or groups) for each VAT, so that the VAT amounts and taxable amounts calculated based on that VAT will be automatically accumulated in the report lines combined by the specified reporting group.

In the Reporting settings (TX205100) window, when you select a tax agency, the VAT report configured for the selected tax agency opens.
On the Report lines tab, in the Calc. rule column, the system can show the formula such as "2+4" in the report line that has been configured as an aggregate line.
It means, that the amounts that update the 2nd line and the amounts that update the 4th line are also update this line (which, in this topic, we call the aggregate line for the recognition).
The numbers in this formula mean the order numbers of the lines in the VAT report.

The line numbers are determined and inserted by the system automatically according to the settings, which you have specified in the Reporting groups (TX205200) window (in which you have specified the report lines that should be updated by the respective reporting group that, in its turn, is associated with a particular VAT).

Consider an example in which the system determines the calculation rule and inserts it into the corresponding line.
Suppose that you have created five lines in the VAT report on the Report lines tab of the Reporting settings (TX205100) window:

1. VAT amount (sales VAT)
2. Taxable amount (sales VAT)
3. VAT amount (use VAT)
4. Taxable amount (use VAT)
5. Total VAT amount (sales VAT and use VAT)

Then suppose that you have created two reporting groups: one reporting group for a sales VAT, and one reporting group for a use VAT.

In the Reporting groups (TX205200) window, you specify which report lines should be updated by which taxes by using reporting groups as follows:

1. The output reporting group associated with the sales VAT should update lines 1 and 5; the sales VAT amount is collected in a separate line and in the total VAT amount line.
2. The output reporting group associated with the use VAT should update lines 3 and 5; the use VAT amount is collected in a separate line and in the total VAT amount line.
   
   Ignore the taxable amount lines here because the calculation rule is the same for them.

Here, you can see that line number 5 should be updated by the same amounts as the lines1 and 3.
As a result, on the Reporting line tab in the Reporting settings (TX205100) window, the following formula will appear in the Calc. rule column in the line number 5: 1+3.

You can set up a more complicated configuration when the aggregate report line will accumulate multiple amounts, which at the same time update other lines of the VAT report.

For each supplier (tax agency), you can specify a particular frequency of VAT report preparation by selecting an appropriate option in the Reporting period type field on the Tax agency settings tab of the Suppliers (AP303000) window; it can be Semi-monthly, Monthly, Once in two months, Quarterly, Semi-annually, Yearly, or By financial period.
The selected reporting period type determines the VAT reporting periods defined for the tax agency.
You can view these VAT periods while preparing a VAT report in the Reporting period field in the Prepare VAT report (TX501000) window.

You can prepare at least one VAT report for each VAT reporting period depending on whether the Update closed reporting periods check box is selected for the tax agency in the Suppliers (AP303000) window or not.

In the VAT report, you can configure the report lines to be itemised by VAT zones.
That is, the amount accumulated in the particular line will be split by VAT zones, with a separate line shown for each involved VAT zone.
To configure the report line in this way, select the Detail by VAT zones check box for the required line on the Report lines tab of the Reporting settings (TX205100) window.
To view report lines that are split by VAT zones, select the Show VAT zones check box in the top part of this window.
As a result, the VAT report that you prepare in the Prepare VAT report (TX501000) window will contain the lines with the corresponding amounts itemised by VAT zones.

You can also configure report lines that show amounts related to a particular VAT zone.
To do this, on the Report lines tab in the Reporting settings (TX205100) window, select the required VAT zone in the VAT zone ID column for the required report line or lines.
As a result, an appropriate VAT or taxable amount calculated in sales or purchase documents related to a selected VAT zone will update this report line.

If the Multi-currency accounting functionality is enabled in the Enable/disable functionalities (CS100000) window, you can specify a particular currency for a tax agency (which is defined in the system as a supplier) in the Suppliers (AP303000) window. This currency will be used for creating a VAT report for this tax agency.
If the currency of a VAT report (which is the currency of the tax agency) is different from the currency of a document subjected to specific VAT, the system uses the exchange rate between these currencies of the type assigned to the tax agency effective on the date of the document.
You can enter the exchange rates that might be needed for VAT reports by using the Currency rates (CM301000) window.

You use the Process VAT report (TX502000) window to release the prepared VAT report. You can set up the system to generate a purchase invoice on release of the VAT report.
The purchase invoice will contain the total VAT amount that you must pay to the tax agency for the selected reporting period.

To set up the system to generate a purchase invoice while releasing a VAT report, in the Reporting settings (TX205100) window, you need to configure the line that accumulates the appropriate VAT amounts, and select the Net check box in that line.
Once a VAT report is released, the system generates a purchase invoice, which appears on the Supplier ledger documents tab of the Process VAT report (TX502000) window.
To open and view the invoice, you need to click its number in the Ref. no. column.

If you have posted any documents to a closed reporting period for which you have already released a VAT report, you can prepare a revision of the VAT report for the closed reporting period.
The functionality of updating a closed reporting periods is available if the Update closed reporting periods check box is selected for the tax agency on the Tax agency settings tab of the Suppliers (AP303000) window.

Once you have prepared and released a VAT report for the closed reporting period, the system generates another purchase invoice, which appears on the Supplier ledger documents tab of the Process VAT report (TX502000) window.