dynamics 365 for finance and operations: 2019 workshop · microsoft dynamics 365 for finance and...
TRANSCRIPT
Italy: VAT Management Regulatory Update
on Dynamics 365 for Finance and Operations
and Dynamics AX 2012 R3
Elizaveta Golubemail: [email protected]
Adam Trukawka email: [email protected] Microsoft Dynamics Globalization
This presentation contains Microsoft Confidential Information. Microsoft may use any suggestions, comments, or other feedback that you provide for any purpose without obligation. This presentation is provided for informational purposes only and represents Microsoft’s view as of the presentation date. Microsoft cannot guarantee the accuracy of any information after the presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted as a commitment on Microsoft’s part. This presentation is provided “as-is”.
Microsoft Dynamics 365 for Finance and Operations solution for Italian changes in VAT management by L.D.119/2018 is pre-release software under development. All dates and features specified are preliminary, are based on current expectations, and are subject to change without notice. Microsoft may make changes to specifications and product descriptions at any time, without notice.
Sample code included in this presentation is made available AS IS. THE ENTIRE RISK OF THE USE OR THE RESULTS FROM THE USE OF THIS CODE REMAINS WITH THE USER.
MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. NO LICENSE, EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL PROPERTY RIGHTS IS GRANTED BY THIS PRESENTATION.
© 2019 Microsoft Corporation. All rights reserved.
Globalization
Tools &
Services
Localizations
by Microsoft
Localizations
by ISVs /
partners
Agenda
1. Introduction to the regulatory
changes in tax reporting
2. Overview of functionality impacted
with the new regulatory changes
❑ Dynamics 365 F&O – regulatory
update ▪ Setup and usage example
▪ Release status and functional scope
❑ Dynamics AX 2012 R3 – regulatory
update ▪ Setup and usage example
▪ Release status and functional scope
3. Q&A
What has changed in Italian VAT management ?
Law Decree no. 119 on October 23, 2018 (L.D.119/2018) introduces the following changes in VAT management that takes effect on July 1, 2019:
• VAT payers can recover the input VAT in the VAT settlement for the month when the VAT point is triggered, even if the purchase invoice is received and recorded in the input VAT ledger before the fifteenth day of the next month. This rule doesn’t apply to transactions where the VAT point is triggered in a fiscal year that differs from the fiscal year in which the purchase invoice is received.
• For supplies of services and supplies of goods, the invoice can be issued by the fifteenth day of the month after the month in which the VAT point was triggered. Invoices that are issued and booked before the fifteenth day of the month after the month in which the VAT point was triggered must be included in the VAT settlement of the previous month.
• Starting on July 1, 2019, the invoice can be issued within 10 days of the VAT point. If the invoice isn’t issued at the VAT point, it should include, in addition to the invoice date, a reference to the VAT point date.
Dynamics 365 for Finance and Operations: Overview of functionality impacted with the new regulatory changes
1. “Date of VAT register” feature:❑ Date-type field for VAT transactions – Date of VAT register❑ Auto-filling of “Date of VAT register” value❑ “Date of VAT register” filling after invoice posting
2. “Date of VAT register” impact on VAT settlement:❑ “Settle and post sales tax” process considers sales tax transactions by “Date of VAT register” instead of date of transaction posting❑ System controls filling of Date of VAT register field for all the tax transaction in the period
3. Changes in the “Italian sales tax payment” report:❑ Invoices posted in the period are reported as in the past with additional “Date of VAT register” column ❑ Resulting amounts of VAT are calculated by “Date of VAT register” of tax transactions in the period❑ Totals by each sales tax book section, by sales and purchase books, ‘Summary’ section and Totals section on summary are
represented in three groups: ▪ Operations in the actual period with competence date in the actual period; ▪ Operations in the actual period with competence date in the previous period;▪ Operations in the next period with competence date in the actual period.
4. Changes in other VAT reports and features:❑ E-invoices❑ Purchase and Sales invoices communication (“Esterometro”)❑ Quarterly VAT communication (“Lipe”)❑ Yearly VAT communication
Dynamics 365 for Finance and Operations 10.0.6+
❑ Activate “Date of VAT register” feature
❑ Run consistency check “Sales tax transactions extension”
(build 10.0.234.21+)
❑ Set up auto-filling
❑ Post invoices
❑ Fill in missing “Date of VAT register”
❑ Switch on “Date of VAT register” parameter
❑ Generate Sales tax payment report for preview
❑ Run Settle and post
❑ Generate the Sales tax payment report for the closed period
Dynamics 365 for Finance and Operations v.10: Release status
Title Feature
reference
Planned delivery date
Changes in VAT management by L.D. 119
of 23 Oct 2018
IT-00019 Delivered in 10.0.6
Quarterly VAT communication ("Lipe 2018") IT-00038 October 2019
Purchase and Sales Invoices communication(Esterometro)
IT-00039 No special update is planned –
guidance ‘how to’ on
docs.microsoft.com
Yearly tax communication IT-00021 Q1 2020
Dynamics 365 for Finance and Operations: Documentation
The following new articles are planned to be published for Italy on docs.microsoft.com:
Area Title Planned publishing period
Europe Tax point date (Date of VAT register) Published
Italy VAT management by tax point date Published
Italy Credit invoicing Published
Italy Purchase and Sales Invoices Communication (“Esterometro”) Planned for Q4 2019
Italy Quarterly VAT communication ("Lipe”) Planned for Q4 2019
KB Article (4511201)Italy: Changes in VAT management by L.D. 119 of 23 Oct 2018 on Dynamics 365 for Finance and Operations v.10.0.6
Dynamics 365 for Finance and Operations: planned feature deprecation
The following features will be deleted from scope of Finance and Operation localization for Italy due to these features are not legally required any more:
➢ Blacklist report - [Feature reference = IT-00001]
➢ Domestic tax report - [Feature reference = IT-00003]
Learn more about removed or deprecated features on docs.microsoft.com
Dynamics AX 2012 R3: Overview of functionality impacted with the new regulatory changes1. “Date of VAT register” Configuration key:
❑ date-type field for VAT transactions – Date of VAT register❑ Auto-filling of “Date of VAT register” value❑ “Date of VAT register” filling after invoice posting
2. “Date of VAT register” impact on VAT settlement (same as in Finance and Operations):❑ “Settle and post sales tax” process considers sales tax transactions by “Date of VAT register” instead of date of transaction
posting❑ System controls filling of Date of VAT register field for all the tax transaction in the period
3. Changes in the Italian sales tax payment report (the same as in Finance and Operations)❑ Invoices posted in the period are reported as in the past with additional “Date of VAT register” column ❑ Resulting amounts of VAT are calculated by “Date of VAT register” of tax transactions in the period❑ Totals by each sales tax book section, by sales and purchase books, ‘Summary’ section and Totals section on summary are
represented in three groups: ▪ Operations in the actual period with competence date in the actual period; ▪ Operations in the actual period with competence date in the previous period;▪ Operations in the next period with competence date in the actual period.
4. Changes in other VAT reports and features:❑ E-invoices❑ Esterometro❑ Quarterly VAT communication❑ Yearly VAT communication
Dynamics AX 2012 R3
❑ Activate “Date of VAT register” configuration key
❑ Run consistency check “Sales tax transactions extension”
❑ Set up auto-filling
❑ Fill in missing “Date of VAT register”
❑ Switch on “Date of VAT register” parameter
Dynamics AX 2012 R3: Release status
Title Feature
reference
Planned delivery date
Changes in VAT management by L.D. 119
of 23 Oct 2018
IT-00019 October 2019
Quarterly VAT communication ("Lipe 2018") IT-00038 Q4 2019
Purchase and Sales Invoices communication(Esterometro)
IT-00039 Q4 2019
Yearly tax communication IT-00021 Q1 2020
Dynamics 365 for Finance and Operations 7.3: Release status
Title Feature
reference
Planned delivery date
Changes in VAT management by L.D. 119 of
23 Oct 2018
IT-00019 Q4 2019
Quarterly VAT communication ("Lipe 2018") IT-00038 Release in scope of v10
Purchase and Sales Invoices communication(Esterometro)
IT-00039 Release in scope of v10
Yearly tax communication IT-00021 Q1 2020
Yammer group: https://www.yammer.com/dynamicsaxfeedbackprograms/#/threads/inGroup?type=in_group&feedId=17055599&view=all
Contact us
Q & A
Questions received during the session and answers on them
Question Answer
Can "Date of VAT register" feature be turned off at any time? It is supposed that user may turn off the “Date of VAT register” parameter in both General ledger parameters and in Feature
management. But there are some limitations intendent to support data consistency. Please find more details in the documentations:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/localizations/emea-ita-vat-management
What date is used as value for "Date of VAT register" on "Fix
errors" of "Sales tax transactions extension" consistency
check?
On "Fix errors" of "Sales tax transactions extension" consistency check no date is used for value for "Date of VAT register" field – it
remains empty. In open VAT period it is possible to define this date manually via “VAT register transactions” periodic task.
The consistency check is only for the company where it is run
or for all the companies?
The consistency check works for the legal entity where it is run.
Is “Date of VAT register” feature available for all countries or
only for Italy?
“Date of VAT register” feature in Feature management is globally available, but “Date of VAT register” parameter in General ledger
parameters becomes available via feature management activation for Italy only.
What about other EU countries? We are using the field "Date
of VAT register“. Is this feature management for us as well?
We use setup in GL params -> Sales tax -> Tax options ->
Date of VAT register = TRUE. Is this field still valid?
Easter European counties which use "Date of VAT register" field and all the related to it functionality available for that country are not
affected by this change. They don't need to switch on or off anything additionally - all the processes stay as they are.
Does it work similar to the VAT register date used in Poland? Yes, the concept of "Date of VAT register" feature is an extension of the same-name feature for Eastern Europe. However, behavior of
auto-filling rules may differ due to unification of the algorithm through the system.
Will the Split Payment invoice will use the same Date of VAT
register for the reversal transactions?
Yes, the Split payment reversal transaction will be posted with the same Date of VAT register value.
In Italy “Date of vat register” can't be later than invoice date.
Is there any check (error message) if posting date > 15th of
october and Date of Vat register is in September, in order to
block the user to do it?
The “Date of VAT register” field is made global and the mentioned rule may not correlate with legal requirements in some countries
outside of Italy. At the same time, the “Date of VAT register” field can be changed in open VAT period is case the provided during
posting process value is wrong.
It is also possible to implement some specific checks needed by a particular customer on, for example validateWrite(), or create a
specific consistency check procedure. For this purpose use extensions. Learn more about extensibility: https://docs.microsoft.com/en-
us/dynamics365/unified-operations/dev-itpro/extensibility/extensibility-home-page
Competence date in sales tax payment report corresponds to
Date of VAT register specified in VAT transactions?
Competence date in the Sales tax payment report corresponds specifically to “Date of VAT register” field in the tax transaction. This
date is considered in grouping of the transactions by three groups (these names are applied for the report’s labels in en-us):
- Operations in the actual period with competence date in the actual period
- Operations in the actual period with competence date in the previous period
- Operations in the next period with competence date in the actual period
Thank you!