Setting up VAT Tax Line Numbers

Each year, companies in some countries, for example, Germany, must submit a VAT advance tax return to the fiscal authority. The format of this return changes from year to year.

Use the Tax Line Numbers form to define the line numbers on the tax return for a specific year. Map each line number to the tax system and tax code that are used to derive the amount that goes in that line of the report.

The VAT Report output can then be sorted by Line Number, and you can use the subtotals for each line number as the amounts to enter for those lines on the VAT advance tax return.

To set up the VAT tax line numbers:

  1. On the Tax Line Numbers form, specify this information:
    Line Number
    Specify the line number from the VAT advance tax return document. These are the numbered lines on the left side of the tax document. Specify only line numbers where an amount must be entered.
    Description
    Specify the description for that line from the tax document.
    Effect Year
    Specify the effective year for the tax document that uses these line numbers.
    Tax Type
    Specify the tax type for the line number: S (Sales) or P (Purchase).
    Number for Tax Basis
    If this line number includes an amount entry box in the first column on the tax document, specify the box number here.
    Number for Tax
    If this line number displays an amount entry box in the second column on the tax document, specify the box number here.
    Tax System
    Specify the tax system associated with the line number. If there is only one tax system, this field is disabled.
    Tax Code

    Specify the tax code associated with the line number. For example, if the Tax Type is set to P, specify the tax code that is defined for purchasing transactions.

  2. Save your changes.
Related topics
Setting Up Tax Information for the VAT Report
Calculating Value-Added Tax Information