If you have set up the VAT features correctly, VAT is calculated and posted automatically.
You must report the volume of your trade with European Union (EU) countries/regions to the tax authorities, even if no amount has to be settled. Refer to the guidelines provided by your country/region's tax authorities for reporting requirements and instructions.
Every posting that involves VAT creates an entry in the VAT Entries window. These entries are used to calculate your VAT settlement amount (payment or refund) for a specific period.
You can also use general ledger entries to calculate the settlement amount if you set up accounts on the chart of accounts for this purpose. (See the Type field on the VAT statement line.) Note, this method does not follow the format used by the tax authorities on the VAT statement.
You can use a VAT statement to calculate the VAT settlement amount for a period. You can then print a VAT statement and copy the information onto a payment slip.
VAT is not calculated on sales to VAT-liable companies in other EU countries/regions. You must report the value of such sales separately. You can use the VAT - VIES Declaration Tax Auth. report to produce the declaration.
You can use the Calc. and Post VAT Settlement batch job to close the VAT entries and transfer purchase and sales VAT amounts to the VAT settlement account.
The following table describes a sequence of tasks, with links to the topics that describe them. These tasks are listed in the order in which they are generally performed.
| To | See |
|---|---|
Post a journal where the entire amount must be treated as VAT, for example, if you receive a VAT invoice from the tax authorities for imported goods. | |
Post a purchase invoice where the entire amount must be treated as VAT. | |
View entries that have been created by posting VAT. | |
Define how the VAT statement will be calculated. | |
Preview a VAT statement on screen before printing the statement. | |
Print a VAT statement that you can use to fill in the payment slip for the tax authorities. | |
Create a periodic VAT report that can be submitted to the tax authorities. | |
Print a VIES report for sales to other EU countries/regions. | |
Close the open VAT entries and post the net settlement amount to the VAT settlement account. |