2 Understanding Localizations for Spain

This chapter contains the following topics:

• Section 2.1, "Understanding Spanish VAT"

• Section 2.2, "Spain-Specific Setup and Processes"

2.1 Understanding Spanish VAT

This section provides an overview of Spanish VAT.

If you work with Spanish VAT, you should understand these terminology and principles:

• VAT returns for each month must be completed on a special form and filed with the local tax office on the 20th of the month.

• You must pay any excess output VAT over input VAT at the time of filing.

• To be exempt from VAT, the business must work within these guidelines:

  • Goods must be physically moved to another EU-member country.

  • Customers must have VAT identification codes.

  • Invoices must display applicable VAT numbers.

  • Goods cannot be of a special category, such as vehicles.

See Also: Using Additional Reports for Spain.

2.2 Spain-Specific Setup and Processes

This table lists the country-specific setup and functionality for Spain.

Setup or Process	Description
UDCs (user-defined codes)	In addition to the base software UDCs: Set up the Draft Print Program (03B/DP) UDC with Spain-specific values. See Setting Up UDCs for Spain. Set up UDCs for tax reporting. Set up UDCs for European Union reporting. See "Setting Up UDCs for Intrastat Reporting" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide. Set up UDCs to print invoices with an attached International Payment Instruction (IPI). See "Setting Up UDCs for International Payment Instructions" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide. Set up these UDCs for companies: Affiliated Companies (74/AC) Code Number (74/30) See "Setting Up UDCs for European Companies" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide.
Companies and individuals	To set up companies and individuals for Spain: Enter the village code when you set up companies. See Entering a Village Code for Companies in Spain. Enter additional information for commercial sites that the company leases. Enter the Codigo de Identificacion Fiscal (C.I.F.) for a foreign company or enter the Numero de Identificacion Fiscal (N.I.F.) for foreign individuals. See Understanding Foreign Tax ID Validation for Spain. Enter company information used by the Model 340 VAT report. See Understanding the Model 340 - Generate VAT Tape File Program. Set up the system to validate bank account information. See Entering A.E.B. Customer and Supplier Bank Information for Spain.
Customers and suppliers	You can generate reports for customer and supplier balances. See " Supplier Balance Reports" in the JD Edwards EnterpriseOne Applications Accounts Receivable Implementation Guide.
Chart of accounts	Spain uses a chart of accounts that is different from the standard chart of accounts provided. See Understanding the Alternate Chart of Accounts for Spain.
Bank accounts	When setting up bank accounts for Spain: Set up the system to validate bank account information. See Entering A.E.B. Customer and Supplier Bank Information for Spain. Review the overview about bank account validation. See "Understanding Bank ID and Bank Account Validation" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide. Review the overview about using international bank account numbers (IBAN). See "Understanding International Bank Account Numbers" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide.
Invoice processing	In addition to standard invoice processing, you can print invoices with an attached International Payment Instructions (IPI). To print these invoices and attachments: Set up UDCs for IPIs. See "Setting Up UDCs for International Payment Instructions" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide. Print invoices with attached IPIs. See "Printing Invoices with an Attached International Payment Instruction" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide.
Accounts Receivable draft processing	A validation routine exists for bank IDs and bank accounts. The system uses the validation routine when you process accounts receivable drafts. See "Understanding Bank ID and Bank Account Validation" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide. To use draft processing for accounts receivables in Spain: Set up the standard UDCs for draft processing and set up a country-specific value for the Draft Print Program (03B/DP) UDC. See Setting Up UDCs for Spain. See "Setting Up UDCs for Accounts Receivable" in the JD Edwards EnterpriseOne Applications Accounts Receivable Implementation Guide. Set up a fee schedule for drafts. See Setting Up Draft Stamps for Spain. Set the processing options for the Spanish draft remittance programs. See Working With Draft Remittance Formats for Spain. Set up to validate bank account information. See Entering A.E.B. Customer and Supplier Bank Information for Spain. Use the Stamp Fees Report (R74S540) to print a report to view the total amount and the fee amount for each draft. See R74S540 - Stamp Fees Report. Use Spain-specific processes for: Originating drafts See Originating Drafts for Spain. Reprinting drafts See Reprinting Drafts for Spain.
Payment processing	A validation routine exists for bank IDs and bank accounts. The system uses the validation routine when you process EFT payments. See "Understanding Bank ID and Bank Account Validation" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide. Before processing payments in Spain: Set up payment formats. See Setting Up Payment Formats for Spain. Set up to validate bank account information. See Entering A.E.B. Customer and Supplier Bank Information for Spain.
Intracommunity VAT	Before you process VAT reportable transactions for Spain, set up intracommunity tax rate areas. See "Setting Up Tax Rate Areas for Intracommunity VAT" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide.
Tax processing and reporting	JD Edwards EnterpriseOne provides these VAT reports: Print Invoice Company (R74S440). VAT Report by Tax Rate/Area (R74S450). See Using Additional Reports for Spain. Other required tax reports and filings for Spain include: 340 - Generate VAT Tape File (R74S340). 347 Tax Declaration tape file. 347 - Dec. Companies Report (R74S71). 347 - Operations Report (R74S72) 349 Tax Declaration tape file. 349 - Dec. Companies Report (R74S91). 349 - Operations Report (R74S92). See Processing the 347 Tax Declaration in Spain. See Processing the 349 Tax Declaration in Spain.
Fixed asset depreciation	JD Edwards EnterpriseOne software provides a predefined depreciation method for Spain. See "Understanding International Depreciation Methods" in the JD Edwards EnterpriseOne Applications Fixed Assets Implementation Guide.
Financial reports	To set up your system for financial statements reports for Spain, set up: UDCs Cost center groups, account groups, and layouts for financial statement reports. See "(CZE, HUN, and ESP) Setting Up Accounts and Layouts for Financial Statement Reports" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide. To generate financial statement reports, run the Generate Financial Report program (R749110). See Generating Financial Statement Reports for Spain
Intrastat and other European Union reporting	See "Setting Up European Union (EU) and SEPA Functionality" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide. See "Using European Union Functionality" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide.
Integrity reports	JD Edwards EnterpriseOne software provides these integrity reports for Spain: G/L by Category Code (R70470). G/L by Object and Subsidiary (R7409C1). G/J by Obj. Account or Cat. Code - Spain (R74S490). G/L by Obj. Account - Spain (R74S560). T/B by Obj. Account (R74S570). See Using Additional Reports for Spain.
Oracle Business Accelerator	The JD Edwards EnterpriseOne Oracle Business Accelerator solution is available for Spain, as well as other countries. The preconfigured data that are part of the Oracle Business Accelerator solution is based on business processes that have been designed according to the best business practices for a specific country and industry. See http://docs.oracle.com/cd/E24705_01/index.htm.