vat reporting for spain - oracle cloud · vat reporting for spain fusion financials for emea erp...

1

Table of Contents 1. Purpose of the document 3

2. Common Setup 3

Implementation 3

Tax Reporting Entities 5

Review Tax Rates 7

Review/Enter Offset Tax Setup 8

Tax Reporting Types and Codes 9

Third Party Tax Setup 13

3. Payables and Receivables Transactions with Tax 17

Payables 17

Receivables 20

4. Select Transactions for Tax Reporting 22

5. Submitting the Reports 23

Sample Report Outputs 25

Input VAT Journal Report for Spain 25

VAT Inter-EU Reports for Spain 26

Output VAT Journal Report for Spain 27

6. Finalize Transactions for Tax Reporting 28

VAT Reporting for Spain

Fusion Financials for EMEA

ERP CLOUD

2

Review periods statuses 30

Adjustments in a finally closed period 31

7. Reporting of Interim Tax 33

3

1. Purpose of the document

This document explains the implementation and usage guidelines for the following reports:

Input VAT Journal Report for Spain

VAT Inter-EU Invoice Journal Report for Spain

VAT Inter-EU Invoice Format Report for Spain

Output VAT Journal Report for Spain

The document explains the pre-requisite setup, important transaction entry aspects, tax data

preparation prior to reporting, report output details and the business flow.

2. Common Setup

Implementation We will use a sample implementation as illustrated below:

Implementation consists of a single primary ledger, 2 legal entities and their respective business units

associated to this ledger. The examples in this document are based on this setup unless specified

otherwise. ES VAT regime tax configuration will be referenced throughout this document.

You can alternatively use any company structure as long as the prerequisite setup exists like: ledger,

legal entities and business units, first party tax configurations, third parties with complete tax profiles

and data security.

4

Legal Reporting Unit Tax Registrations

Complete tax profile setups for the legal reporting units.

Task name: Manage Party Tax Profiles

Navigation : Navigator –> Setup and Maintenance -> Manage Party Tax Profiles

LE 1/LRU 1: ES Vision SEQ LE1 - Spain

LE 2/LRU 2: ES Vision SEQ LE2 – Spain

Create one tax profile for each legal reporting unit, one profile with offset tax and the other with self

assessment. You will find it convenient to have this variation in producing data for Inter-EU reports.

These reports can support both offset tax and self assessed-tax.

LRU 1

5

LRU 2

Tax Reporting Entities

Enable tax reporting configuration by checking the option at regime level

Task name: Manage Tax Regimes

Navigation : Navigator –> Setup and Maintenance -> Manage Tax Regimes

‘Use tax reporting configuration’ flag should be checked to allow entry of tax reporting configuration

details during tax registration setup for legal reporting units for the regime.

6

Tax Reporting Entities



Define tax reporting entities for the legal reporting units.

7

Review Tax Rates Task name: Manage Tax Rates and Tax Recovery Rates

Navigation : Navigator –> Setup and Maintenance -> Manage Tax Rates and Tax Recovery Rates

Use existing tax rates or add new tax rates.

Setup for ES VAT STANDARD RATE and ES VAT STANDARD DEF RATE are shown below as examples.

These tax rates have tax point basis, ‘Invoice’ and ‘Payment’ respectively.

In the sample test cases you will also see ES VAT REDUCED RATE 1 and ES VAT REDUCED RATE 2. These

tax rates have tax point basis ‘Invoice’.

8

Review/Enter Offset Tax Setup

Offset tax rates are defined and are associated to standard tax rates as shown below:

9

Tax Reporting Types and Codes

Associate Tax Reporting Type/Code directly to different tax entities (Tax Rate, Tax Status, etc.) or to

applicable Tax Rule Results (Tax Rate Determination Rule, Tax Status Determination Rule, etc), so that

when these rules are triggered the relevant transaction would be associated with these tax reporting

codes. Usage of multiple reporting codes may cause the same transaction to be classified with more

than one reporting code.

EMEA_VAT_REPORTING_TYPE is a predefined tax reporting type with commonly used tax reporting

codes like ‘VAT’. You can conveniently use these codes without additional setup. Add new tax reporting

types and codes if necessary.

10

Review or add Tax Reporting Type/Code Assignments:

Here, the assignments are at Tax level, which will apply to all rates that are associated to the tax code.

Enter the above associations if not already entered.

Define new tax reporting types and codes and assign to your transactions. In the example below, we are

creating a new tax reporting type with three codes and associating these codes to three respective tax

rates.

11

Create a New Reporting Type and Associate at Tax Rate level

Task name: Manage Tax Reporting Types

Navigation : Navigator –> Setup and Maintenance -> Manage Tax Reporting Types

13

Third Party Tax Setup



Set up third parties with correct tax registrations, which allows tax to be correctly applied to Payables

and Receivables transactions and VAT reports for Spain to identify and report these transactions.

Sample setups are shown for various third parties.

(1) Suppliers in Spain

14

(2) Suppliers in EU Countries

a. Offset Tax applies

15

b. Self-Assessment applies

17

3. Payables and Receivables Transactions with Tax

Payables Task name: Create Invoice

Navigation : Navigator –> Payables Invoices -> Create Invoice

Invoices with Tax Point Basis : Invoice or Accounting

19

Invoice with Offset Tax Rate

Invoice with Self assessment

20

Receivables Task name: Create Transaction

Navigation : Navigator –> Receivables Billing -> Create Transaction

Transactions with Standard Tax Rates

Transactions with Deferred Tax Rates (Tax Point Basis: Payment)

(Please also see item 14)

22

4. Select Transactions for Tax Reporting

After entering and accounting AP and AR transactions, ‘Select Transactions for Tax Reporting’ to prepare

tax records for VAT reporting.

Select "Legal Entity" to report data based on all transactions associated with that legal entity. Use

"Ledger' to report data based on internal accounting which can span across legal entities. "Legal Entity"

is the standard.

In Tax Registration Number parameter, tax reporting entities (a concatenation of the tax registration

number, legal entity and tax regime) are available. You can run the process for any tax calendar period

at a time. Source can be selected as Input tax, Output tax or both.

Navigation: Navigator –> Tools -> Scheduled Processes

Selection process will select following transactions:

Accounted transactions with standard tax (Tax Point Basis: Accounting or Invoice) that have accounting

dates in the period for which the process is submitted for.

Accounted transactions with deferred tax (Tax Point Basis: Payment) that have been fully or partially

paid as of the period for which the process is submitted for. For partial payments, only paid portions of

the amounts are printed. For the transactions to be printed, payments must also be accounted.

Transactions with deferred tax are printed on the Interim Tax Register .

Caution: You must start with first tax calendar period. This can be a period without any tax

transactions but you must make sure there is no taxable activity prior to this period. For tax

reporting to reflect correct tax activity for any period range selected, the initial tax period must

be finally closed. Please refer to Section 6 for details of final processing.

23

5. Submitting the Reports

Navigation: Navigator –> Tools -> Scheduled Processes

Run VAT Reports for Spain:


VAT Inter-EU Invoice Journal Report for Spain

VAT Inter-EU Invoice Format Report for Spain


A sample run is shown below:

Parameters are similar for all reports with one exception: Register Type. Register Type parameter is

available for the following reports only:



24

Submit the report for Jan-10 and ‘Tax Register’:

Use ‘Enable reporting sequence’ parameter to print sequence numbers for each report line. If you select

‘No’, no numbers will be printed. If you select ‘Yes’, all report lines will be printed with sequence

numbers starting from the value you enter in ‘Start Invoice Sequence’.

25

Sample Report Outputs


26

VAT Inter-EU Reports for Spain

27


28

6. Finalize Transactions for Tax Reporting

Submitting Final process is necessary when tax reporting for a period is finalized. You should avoid

transactional tax changes in a finally closed tax reporting period.

When it is time to close the period for tax reporting follow the steps below:

For example: We want to close JAN-10 for any input and output tax changes for LE2.

1. Run ‘Select Transactions for Tax Reporting’ for the period (as explained in item 10 above)

Caution: For final closing of your first (initial) tax period: Ensure you select the correct Reporting

Level. You should not change the level you select for your initial final closing. If your initial final

closing level is legal entity, you will be closing your subsequent periods by legal entity as well.

2. Optionally run ‘Input VAT Journal for Spain’ and ‘Output VAT Journal for Spain’ if a final control

is needed.

3. Submit ‘Finalize Transactions for Tax Reporting’ for the period and Tax Reporting Entity.

29

Once this process is successfully completed it is not possi ble to run selection process for the same

entity and period. The process will error.

It is possible to close period for tax reporting for either one of input or output tax at a time as well.

For example we can close FEB-10 for output tax only.

30

Review periods statuses

Navigation: Navigator –> General Accounting -> Financial Reporting Center -> Transaction Tax Report

History

Using Transaction Tax Report History UI you can do the following for the given reporting entity and

period:

Review the period(s) for which the Final Process has already been run

Review the report and tax register finally reported

Reprint finally reported reports

31

Adjustments in a finally closed period If users need to enter tax transactions in a period that is finally closed and reported, these transactions

can only be reported in the next tax period that is not finally closed.

An example transaction process after final closing:

Please note that the corresponding General Ledger accounting period may or may not be closed.

Run selection process for MAR-10 (next period which is not finally closed)

32

Output VAT Journal for Spain:

33

7. Reporting of Interim Tax Interim tax reporting does not require selection process. The following report can be submitted for any

reporting entity and a tax calendar period to report tax at interim status. Very common case is the

transaction with deferred tax rate that is not paid or partially paid.

34

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This document is provided for information purposes only, and the contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject

to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose.

We specifically disclaim any liability with respect to this document, and no contractual obligations are formed either directly or indirectly by this document. This document may not

be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission.

Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

Intel and Intel Xeon are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks are used under license and are trademarks or registered trademarks of

SPARC International, Inc. AMD, Opteron, the AMD logo, and the AMD Opteron logo are trademarks or registered trademarks of Advanced Micro Devices. UNIX is a registered

trademark of The Open Group. 0114

vat reporting for spain - oracle cloud · vat reporting for spain fusion financials for emea erp...

Documents