Generating the VAT Report

On invoicing, a company in the EU must charge VAT when your customer is domestic or located in another member state, and when the customer is not registered and arranges for the transport of goods from another location. These cases are identified by a blank tax code on the customer order and for the customer. Otherwise, enter a zero-rated tax code in the customer order and for the customer. If you can define the transaction as distance selling, you must know the threshold of the customer, and fill in the tax codes when appropriate.

Use the VAT Report form to extract information from invoice and voucher sales tax information, from the Invoice Register and A/P Voucher Register line items, and from the manual journal entries tax table. The information can be grouped in various ways to provide subtotal amounts that can be used to fill in the VAT reports that are required by tax authorities.

Note: If the Process Indicator is set to 3 for a transaction, then that amount is not included in the total of invoice register and A/P voucher register line items.

To set up the report:

On the VAT Report form, specify the tax system, if there is more than one. Otherwise the tax system defaults to 1.
Specify a tax jurisdiction.
Specify the way in which the report is sorted and subtotaled:
- Category: Sort by category and then by tax code. Categories are defined on the EU VAT Reporting Categories form and are assigned to tax codes on the Tax Codes form.
- Tax Code: Sort by the codes that are defined on the Tax Codes form.
- Tax Account: Sort by the actual tax account numbers.
- Tax Base Account: Sort by the account that is being taxed, for example the sales order account.
- Line Number: Sort by the line numbers and boxes on certain tax documents, as defined on the Tax Line Numbers form.
Select Show Detail to show additional detail. In this case, each VAT amount is broken down to show the relevant transactions, including voucher or invoice number and the tax breakdown.
Select Display Report Header to print headers on the first page of the report and to list the parameters by which you generated the report.
Specify the date range of the tax period to include on the report.
Select Increment Date to have the system automatically increment date ranges and re-run the report.
Click Preview to preview the report output or Print to print the report.