Working with VAT

This chapter provides an overview of value-added taxes (VAT) and describes how to:

• Define VAT transaction types.

• Set up VAT authorities and tax codes.

• Define VAT countries.

• Set up VAT entities.

• Define VAT use types and apportionment.

• Establish VAT defaults.

• Manage VAT on interunit transactions.

• Load the VAT transaction table.

• Generate VAT reports.

Note. This chapter provides information about VAT accounting and reporting and the functionality that Oracle's PeopleSoft applications provide to facilitate those tasks. This information is not to be construed as tax advice nor is it intended to document all the ramifications of accounting for VAT or reporting for VAT. Please consult your tax professional to ensure your full compliance with the laws and regulations dealing with VAT accounting and VAT reporting.

Understanding VAT

This section discusses:

• VAT functionality.

• Taxable status and VAT rates.

• VAT reporting and accounting.

• VAT recoverability.

• VAT defaults.

• VAT report production.

• VAT environment setup.

VAT Functionality

VAT is used in many countries around the world. VAT is a governmental sales tax, a straight percentage that is added to the cost of goods or services. VAT can be inclusive, in which case VAT is included in the price of goods or services, or exclusive, in which case VAT must be added to the price of goods or services.

The core concept of VAT is simple: at each step in the supply chain, VAT is calculated by multiplying the cost of the goods or services by the tax rate and then charged by the seller to the buyer; normally, at each step in the supply chain except the last, the buyer can recover the VAT incurred. VAT charged by the seller and remitted to the government is referred to as output VAT , while VAT incurred by the purchaser and potentially recoverable from the government is referred to as input VAT. The application of the tax can be complex because each country has specific requirements. PeopleSoft global VAT functionality fully supports these country-specific requirements.

To implement VAT effectively in Oracle's PeopleSoft Financials and Supply Chain applications, you must fully understand the legislation governing VAT in the applicable countries before implementing the applications.

To use VAT in PeopleSoft applications, you must first set up the VAT environment. You can then create various VAT documents, such as sales orders, customer invoices, purchase orders, and vouchers. You can also record VAT for employee expense reports, asset retirements (in case of sale), bank fees incurred, and general ledger journal entries.

The VAT on these documents and transactions is calculated based upon the information that you enter. For example, the VAT codes that you enter determine the VAT rates that the system uses to calculate the VAT amount. In PeopleSoft Purchasing, Payables, Treasury, Expenses, and General Ledger, the VAT use type that you enter partly determines the amount of VAT that is recoverable.

The VAT information on all transactions and documents is loaded into the VAT transaction table by a background process and by a second process into the VAT reporting tables, from which you can create VAT returns and other VAT reports.

PeopleSoft applications enable an organization to effectively administer VAT by:

• Charging VAT on invoices to customers, recording VAT collected from customers, and paying and recording VAT charged by suppliers.

• Determining what percentage of VAT paid on purchases is recoverable to offset the amount of output VAT that must be sent to VAT authorities.

• Accounting for and reporting both the VAT paid on purchases and the VAT collected on sales.

To implement this functionality, you must be able to enter transactions into the system, correctly calculating and recording the VAT. You must also be able to report VAT correctly on the VAT return as well as account for it correctly.

Taxable Status and VAT Rates

In PeopleSoft applications, you identify the taxable status for a given transaction by specifying the VAT applicability for a transaction line. This table lists the system-defined values that are provided:

For taxable lines, VAT must be calculated at the rate applicable to the goods or services being sold or purchased, as defined by the tax authorities in each country.

Within the PeopleSoft VAT environment, you define VAT rates at the VAT authority. One or more VAT authorities may be combined under one VAT code. The total of the VAT rates specified on all the associated authorities is the VAT rate applicable to that VAT code. A VAT code is applied to a transaction line, which enables VAT for that line to be calculated at the rate specified for that VAT code.

VAT Reporting and Accounting

Three key VAT setup elements facilitate VAT accounting and reporting: VAT codes, VAT accounting entry types, and VAT transaction types. These setup elements are used in combination by the PeopleSoft VAT report definitions to determine the information to be included on each line of the VAT return. To facilitate reconciliation between the general ledger and the VAT return, these elements are also used in combination to determine the ChartFields to which VAT amounts are posted.

VAT Codes

You use VAT codes to specify the rate at which VAT is calculated.

The VAT rate is frequently the key to reporting VAT because VAT amounts must often be reported separately by VAT rate on a VAT return. Therefore, the VAT code is part of the reporting definition.

To facilitate reconciliation between the general ledger and the VAT return, VAT amounts are usually recorded separately by VAT rate in the general ledger. For this reason, you define VAT accounting information (also referred to as the VAT accounting template) by VAT code.

VAT Accounting Entry Types

In addition to requiring that VAT amounts be reported separately by VAT rate, your VAT return may require that VAT amounts for certain types of transactions be reported separately. For example, you may need to report adjustments made to VAT or VAT recorded on advance payments separately.

Again, to facilitate reconciliation between the general ledger and the VAT return, VAT amounts are usually recorded separately in the general ledger for each of the different types of transactions.

VAT accounting entry types are one of the mechanisms used to enable the correct reporting and accounting of these transactions. These are system-defined values that identify the different types of VAT accounting entries that may be required (for example, input-recoverable, input discount adjustments, output, output on credit memos, or output for purchases).

When you define VAT reports, VAT accounting entry types are used to identify the general types of transactions that should be included on any given line on the VAT return. For example, you might specify that input-recoverable VAT amounts be included on one line of the return while output VAT amounts be included on another line.

For accounting purposes, you define VAT accounting information for each of the VAT accounting entry types defined in the VAT accounting template. The accounting entry types available in this template are determined by the PeopleSoft applications you have installed. Not all of the VAT accounting entry types apply to your organization, so you can define dummy VAT accounts for those that do not apply.

Note. This chapter includes a table that lists the delivered VAT accounting entry types.

See VAT Environment Setup.

VAT Transaction Types

You use VAT transaction types to classify and categorize transactions at a more detailed level for both VAT reporting and accounting. These are specified for each transaction line when you enter a transaction.

You define the VAT transaction types that you need for your VAT setup. PeopleSoft software also provides a set of VAT transaction types as sample data.

In your VAT reporting definition, you use VAT transaction types to fine-tune the information that you want to include on a given line on the VAT return. You can do this by specifically including, or effectively excluding, certain types of transactions. For example, if you are located within the European Union (EU), you may need to report self-assessed output VAT for intra-EU acquisitions on one line in the return, while reporting self-assessed output VAT for services provided by foreign vendors on another line. For both lines on the report, you indicate that you want to include transaction lines with a VAT accounting entry type indicating VAT Output on Purchase. For the first line, you also indicate that you want to include only those transactions that are flagged with a VAT transaction type indicating an intra-EU acquisition. For the second line, you indicate that you want to include only lines flagged with a VAT transaction type indicating a service provided by a foreign vendor.

For accounting purposes, VAT accounting information defined for each given VAT accounting entry type is applicable for all VAT transaction types unless it is overridden at the more detailed VAT transaction type level. In the cases in which you need to record VAT amounts in the general ledger at the more detailed level, you can indicate that VAT amounts for a given VAT accounting entry type be posted to different sets of ChartFields defined for each specific VAT transaction type.

VAT Recoverability

Another key component that you must put in place are the rules that determine whether input or purchase VAT can be recovered, and if so, how much.

Whether the VAT paid on any given purchase is recoverable depends on two factors: the nature of the purchased goods or services and how the purchased goods or services are to be used. In some countries, you cannot fully recover the VAT paid for specific items, regardless of how they are used. For example, in the United Kingdom (UK), you are unable to recover input VAT incurred on business entertainment expenses, regardless of the taxable status of your business activities. You can achieve this functionality within PeopleSoft VAT defaults setup by defining inventory items and expense types that are not 100 percent recoverable.

If goods or services are used in a taxable activity (for example, an activity that ultimately results in the production of a taxable product), then VAT paid on the purchase of those goods or services is recoverable. But if the goods or services are used in a nontaxable or exempt activity (for example, an activity that ultimately results in the production of a nontaxable product), then the VAT paid on the purchase of those goods or services is not recoverable. Sometimes, purchased goods or services are used in a mixture of taxable and exempt activity. In this case, the VAT paid on the purchase of those goods or services would be partially recoverable.

In Canada, certain public service organizations, categorized as public service body types, are eligible to reclaim an additional portion of their input VAT that would normally be nonrecoverable. This eligibility is called a rebate. Each Canadian VAT authority has established its own set of rebate percentages by public service body type to be used in the calculation of VAT rebates.

Two ways that you define the usage portion of recoverability are the VAT use type and VAT apportionment.

VAT Use Type

The VAT use type identifies the end use of a given purchase by defining how much of a given activity or use is taxable, and how much of that activity is exempt, based on the tax status of the goods or services ultimately produced from those procured. In general, you specify the use type for each transaction line, thereby indicating how the purchased good or service on that line is used.

You can specify the ratio of taxable activity to nontaxable activity directly on the use type, or you can specify that mixed apportionment be used to define the ratio of taxable to nontaxable activity at the ChartField level, if you are required to calculate recoverability at a detailed level.

The VAT use type must also be linked to a public service body type for public service type organizations in Canada to retrieve the appropriate rebate percentage for transactions with exempt activity.

VAT Apportionment

VAT apportionment is based on the idea that the usage of a given good or service can be determined based on the business unit or the ChartFields to which the purchase or expense is charged. In other words, usage can be determined based on which business unit, department, or project might be using the purchased item.

You do not need to set up VAT apportionment information unless you are required to calculate your recoverable VAT at a very detailed level. If you elect to use VAT apportionment to calculate recoverability, you first determine a priority 1 ChartField and a priority 2 ChartField to be used in determining recoverability (for example, department or project). You can choose to define the ratio of taxable to nontaxable activity only at the business unit level. VAT apportionment information defined at the business unit level can be overridden by information defined at the more detailed ChartField level. When defining VAT information for either the priority 1 or priority 2 ChartField, you specify the ratio of taxable activity to nontaxable activity for any given ChartField value (or portion of a ChartField value—for example, all department IDs that begin with 10).

When a VAT use type that indicates VAT apportionment is specified for a line, the system looks for a match in the VAT apportionment data for the value specified first in the priority 1 ChartField and, if not found, then second in the priority 2 ChartField. If a match is still not found, the system looks for a match in the business unit. If a match is found, the system uses the ratio of taxable to exempt activity defined for that ChartField or business unit value to calculate the recovery and rebate. However, if no match is found, the system treats the line as 100 percent nonrecoverable. For this reason, it is imperative that you specify enough VAT apportionment data so that a match is always found.

The system uses either the transaction business unit, the transaction's general ledger business unit, or the distribution line general ledger business unit to access VAT apportionment information, based on the type of business unit that you define as the VAT apportionment control for the PeopleSoft Payables, Purchasing, General Ledger, Expenses, and Treasury business unit VAT drivers in the common VAT defaults table.

Calculating Recovery and Rebate

In addition to the rebate rates defined for public service bodies (PSB) and any recovery rate that may have been defined for the individual item or expense, the system uses the percentages defined for taxable and exempt activity to calculate the recovery and rebate percentages that are then used to calculate the recoverable and rebate VAT in the following way:

• VAT recovery percent is calculated as [(item recovery percent/100) × (taxable activity/100)] × 100

• VAT recovery amount is then calculated as gross VAT amount × (VAT recovery percent ÷ 100)

• VAT rebate percent is calculated as [(item recovery percent/100) × (exempt activity percent/100)] × PSB type rebate rate

• VAT rebate amount is then calculated as gross VAT amount × (VAT rebate percent ÷ 100)

For example, for a school in Ontario, Canada, the rebate rate is 68 percent. If the school incurred input VAT in the amount of 250.00 CAD for an item defined as recoverable at 50 percent and it was associated with a VAT use type with a taxable activity percent of 75 percent, then the result would be:

VAT recovery percent = 
((50/100) x (75/100)) x 100 = (.5 x .75) x100 = 37.5 = 37.5%
VAT recovery amount = 250.00 x (37.5/100) = 250.00 x .375 = 93.75
VAT rebate percent = ((50/100) x (25/100)) x 68 = (.5 x .25) x 68 = 8.5 = 8.5%
VAT rebate amount = 250.00 x (8.5/100) = 250.00 x .085 = 21.25

(When you calculate the VAT rebate amount, the rebate percentage is applied against the gross VAT amount, rather than the nonrecoverable VAT amount, because the exempt activity percentage was taken into account when you originally calculated the rebate percentage.)

This example involves calculating the PSB type rebate rate with a VAT code that is made up of multiple VAT authorities, each with its own individual rebate rate. In this example, the rebate rate is calculated as the sum of (VAT authority rebate rate × VAT authority tax rate) for each VAT authority within the VAT Code divided by the sum of (VAT authority tax rate) for each VAT authority within the VAT Code. (VAT authority rebate rate × VAT authority tax rate) for each VAT authority within the VAT Code) ÷ (sum (VAT authority tax rate) for each VAT authority within the VAT Code).

For a school in New Brunswick, Canada, the PSB rebate rate would be calculated as:

 ((68 x 7) + (0 x 8)) / (7 + 8) = 476 / 15 = 31.73 

VAT Defaults

Based on the VAT rules that apply in different business scenarios, the system is designed to automatically provide as much VAT information as possible about a transaction. For the system to determine which scenario and VAT rules are applicable to a given transaction, you must set up various VAT defaults and other VAT-related pieces of information.

This PeopleSoft application delivers a VAT structure for defaults that:

1. Defines most of the setup structure as predefined system data, including the fields relevant to VAT; the VAT drivers, such as items, products, customers, vendors, and business units for which certain VAT defaults can be specified; and the transaction-specific hierarchies for defaults.

2. Stores as user data the individual factors that make up much of the VAT rules, for example, how VAT must be calculated, when VAT must be declared, how VAT must be recorded, and whether purchase VAT can be recovered. Data considered to be an attribute of VAT drivers, for example, customer VAT registration information, is stored in the application VAT table of defaults, while all VAT data is stored in a common VAT table of defaults.

3. Contains the logic dictated by the various VAT authorities to determine the VAT information that is conditionally based on a combination of factors. For example, once all the country, VAT registration, and VAT exception data is retrieved, the system can determine the VAT treatment. The system automatically supplies as much VAT information about a transaction as possible, either retrieved from the stored defaults or derived from the logic, based on the VAT values already associated with the transaction.

Note. This chapter contains a table listing the VAT drivers for which you can define defaults and the associated VAT controls and defaults.

VAT Defaults and the Organizational Structure

VAT drivers and the organizational structure affect VAT transactions.

VAT Reporting and Registration Countries

Before the system can determine the VAT treatment, it must first determine the VAT reporting country and, if applicable, the VAT registration country for the trading partner.

For sales and procurement transactions for which the physical nature is goods, this determination is made based on whether each trading partner is registered in the ship to country, the ship from country, or both, taking into account the rules that apply both within and outside of the EU.

For sales and procurement transactions for which the physical nature is services, the process is more complex. For freight transport services within the EU, the system determines whether each trading partner is registered in the ship to country, the ship from country, or both. For other types of services, the system looks at where each trading partner's business is established, where the service is physically performed, and where the VAT is most often liable for the type of service being provided.

If the system is unable to determine the VAT reporting country based on the applicable rules, it uses the VAT registration country designated as the home country for the VAT entity. If no country is defined as the home country, the system displays an error message. A valid VAT reporting country must be specified for processing to continue.

The VAT reporting country is also important because it is the main driver for retrieval of VAT defaults from the VAT defaults table.

Services Place of Supply Country

The place of the supply country is another factor in determining the VAT treatment for sales and procurement transactions with a physical nature of services. This is the country in which the VAT is liable for the service. The system determines the place of supply country by looking at the countries in which both trading partners are registered for VAT, the countries in which both trading partners have established their businesses, the type of service being provided (freight transport or other), and where the VAT is most often liable for the type of service being provided.

VAT Exceptions

You also need to consider whether the purchasing organization has been granted some type of exemption from paying VAT. These exemptions, referred to within PeopleSoft applications as VAT exceptions, take the form of either an exoneration or suspension from paying VAT. An organization may be exonerated from paying VAT because of the nature of its business. For example, a government agency may be granted exoneration from paying VAT. In certain countries, such as France, an organization may be granted a temporary suspension from paying VAT because it regularly has a much higher level of recoverable input VAT (as opposed to output VAT) and would always receive a large VAT refund. By granting suspension from paying the input VAT, the refund is either reduced or eliminated.

You can specify whether a VAT exception is applicable to a customer or VAT entity, as the purchasing organization, and, if so, if that exception is an exoneration or suspension from paying VAT. If a valid exception is applicable to a transaction, the transaction uses this information to apply the appropriate default zero-rate VAT code and VAT transaction type.

VAT Treatment

Once the VAT reporting country is known, the main driver for processing VAT on sales and procurement transactions is the VAT treatment. This determines which default values to apply and also controls, to some extent, the availability of some VAT-related fields.

In addition, many countries are required to report the sale and purchase of goods separately from services. To support this requirement, PeopleSoft enables you to distinguish between transactions involving goods and transactions involving services.

For a sale of goods, for example, when the system determines the VAT treatment, it looks first at the combination of the ship-from and ship-to countries. The system then looks at the countries in which the buyer and seller are registered for VAT. If the ship-from and ship-to countries are the same and, in procurement, if the vendor is registered for VAT in that country, then the transaction is treated as domestic. If the vendor is not registered for VAT, the transaction is treated as outside the scope of VAT. If the ship-from and ship-to countries are different, the system determines whether both countries are located within the EU. If they are, the system looks at the VAT registration for each trading partner to determine whether the transaction should be treated as an intra-EU sale or purchase, distance sale, domestic, or outside the scope of VAT. If either or both of the countries are located outside of the EU and, in procurement, if the vendor is not registered in the ship-to country, then the transaction is treated as an export or import. If the vendor is registered in the ship-to country, the transaction is treated as domestic.

The determination of the treatment of services for the purposes of VAT varies a great deal more than for the treatment for goods. For services, when both the supplier and the customer are located in the same country and the services are physically performed in that country, the treatment is the same as the domestic VAT treatment for goods. However, the VAT treatment for services differs from the VAT treatment for goods when the services are performed by a foreign supplier (a supplier not registered in the customer's country).

In the case of services that are performed by a foreign supplier, no tangible goods can be stopped at the border. To deal with this, the requirement in many countries is for the customer to self-assess the VAT due on the supply of services. While this procedure is similar to that for intra-EU acquisition, differences exist. Intra-EU acquisition applies only when goods are moving between countries within the EU and when both trading partners are registered for VAT in the EU. The requirement to self-assess VAT on services performed by foreign suppliers exists for both EU and non-EU countries. Additionally, for customers in EU countries, VAT may be self-assessed on services performed by any supplier that is not located and not registered in the customer's country—regardless of whether that supplier is located in the EU.

Part of the process of determining whether the customer must self-assess the VAT is determining the place of supply of the service, as described previously. For service purchases, if the VAT reporting country is the same as the place of supply country, the purchasing organization records VAT on the purchase transaction. Whether this is self-assessed or not depends on whether the vendor is also registered in the place of supply country. If the place of supply country is different from the VAT reporting country, the transaction is recorded as outside of scope. For the sales of services, if the VAT reporting country is the same as the place of supply country, VAT is charged to the customer, as applicable. However, if the place of supply country is different from the VAT reporting country, the sale transaction is treated as either outside of scope or zero-rated, based on how the VAT reporting country is defined in the VAT country table.

Within PeopleSoft software, detail VAT treatment values on the transaction lines are used for applying the precise defaults applicable to the transaction lines. Each of these detail VAT treatment values is associated with a VAT treatment group. The system tracks the VAT treatment group on the header for PeopleSoft Billing, Receivables, and Payables transactions. The VAT treatment group allows individual transaction lines to be grouped together into invoices during batch processes and validates the detail line VAT treatment values on the transaction lines.

Domestic Reverse Charge

Some countries, such as the United Kingdom, require that a reverse charge be applied to domestic transactions between VAT registered traders involving the sale of certain goods such as mobile phones or computer chips. In these cases, if the goods that are specified on a given transaction line are subject to this reverse charge, the VAT treatment for the line will reflect domestic reverse charge. You can specify by country whether reverse VAT charges apply and whether specific VAT drivers (such as, products, inventory items, vendors, and customers) are subject to the reverse charges.

PeopleSoft provides a VAT report, Reverse Charge Sales List, that shows the domestic business sales that are subject to reverse charges and the VAT that is due from the purchasers on these sales.

See Understanding VAT Reports.

How VAT Defaults Work

Once the VAT reporting country, VAT exception type, and VAT treatment for a transaction are known, the system can retrieve the defaults from the defaults table based on the VAT drivers on the transaction. In general, most of the fields contained within the VAT Controls group boxes on the transaction entry VAT pages are populated based on values retrieved for the VAT reporting country from the defaults table.

To supply the values within the VAT Details group box on the transaction line entry VAT pages, the system retrieves the VAT-applicable value from the defaults table and uses this along with VAT exception type and VAT treatment to determine the VAT applicability for the transaction line.

Once the VAT applicability for a line is derived, that value, along with the VAT treatment, is used in combination with the transaction-specific default hierarchy to retrieve the default VAT code and VAT transaction type values respectively from the common VAT defaults table.

PeopleSoft software VAT default structure is specifically designed to hold the most frequently used value on the driver at the top of the hierarchy and exceptions to this on drivers at lower levels. Default processing on transactions looks through the hierarchy starting at the bottom and stops once a value is found.

The system also makes some initial, basic assumptions about VAT suspension and VAT recoverability that would be applicable to each line:

• Within procurement, before usage is taken into account, all items are assumed to be 100 percent recoverable.

• When recording foreign VAT in expenses, all expense types are assumed to be 100 percent reclaimable.

• For transactions for which the purchasing organization has been granted suspension from paying VAT, all lines are assumed to be subject to VAT suspension.

However, you can define exceptions to these assumptions:

• You can define any item or expense type that, due to the nature of the item or expense, is not 100 percent recoverable.

• You can define any expense type that, due to the nature of the expense when recording foreign VAT, is not 100 percent reclaimable.

• You can define any sales line identifiers (products, charge codes, discounts, surcharges, inventory item, labor type, or generic identifiers), sales line identifier groups (VAT product groups, charge code VAT groups, CRM service type or inventory item group), asset classes, Treasury accounting templates, items or item categories that are not subject to VAT suspension.

  In other words, you can define certain VAT driver values that may still be taxable, regardless of whether the buyer has been granted suspension.

Note. Run the VAT 3000 report after setting up defaults to validate VAT default setup data and to expose any inconsistencies and missing default values.

Overriding VAT Defaults and Settings

In rare and specific cases, the system might not be able to provide all default VAT values as desired. Therefore, to enable the correct recording of a transaction, you can always override any default value on the transaction entry VAT pages. This topic is discussed in greater detail later in this chapter and in the application-specific PeopleBooks.

See Overriding VAT Defaults and Controls on Transaction Entry VAT Pages.

VAT Report Production

Once you enter transactions into the system, you must be able to report those transactions on a VAT return. PeopleSoft software provides processes and report definitions to enable you to do this.

VAT Environment Setup

For the system to track and process VAT, you must first set up some basic information: VAT transaction types, VAT authorities, VAT codes and their associated VAT accounting templates, VAT countries, VAT entities, VAT use types, and VAT defaults. Each piece builds upon the next so, for the basic setup, you should implement each piece in the following order:

1. VAT transaction types.

2. VAT rates, VAT codes, and VAT accounting information.

3. VAT countries.

4. VAT entities.

5. VAT use types.

6. VAT apportionment if you have complex requirements for recovering input VAT.

7. VAT defaults.

In addition to the information you must set up, PeopleSoft software delivers multiple accounting entry types for VAT accounting and reporting with every application. You cannot add your own.

Note. You should use only one setID for all your VAT setup. If VAT codes and transaction types are set up under multiple setIDs, an invalid VAT code or transaction type could supply by default onto a transaction entered for a business unit that is using a different setID for VAT.

This table lists the VAT accounting entry types:

Defining VAT Transaction Types

To define VAT transaction types, use the VAT Transaction Type component (VAT_TXN_CD).

This section provides an overview of VAT transaction type setup and discusses how to set up VAT transactions types.

See Also

VAT Reporting and Accounting

Understanding VAT Transaction Type Setup

VAT transaction types classify each transaction for use in VAT reporting and accounting.

The account to which VAT is posted and the box on the VAT return in which a transaction amount is included are determined by the combination of the VAT code, VAT transaction type, and VAT accounting entry type.

In VAT report definitions, VAT transaction types are used to include (or exclude) specific types of transactions in a line of a report, such as domestic purchases or exports.

You can set up VAT accounting to apply to all VAT transaction types by default, or to apply to specific VAT transaction types.

Example: VAT for Asset Purchases

To account for and separately report VAT paid on the purchase of fixed assets, create a VAT transaction type of ASPU for asset purchase. Then, define the VAT accounting information that applies specifically to the applicable VAT code, the VAT accounting entry type, and the new VAT transaction type of ASPU. Finally, update your VAT report definition so that only transactions with a VAT transaction type of ASPU appear on the asset purchases line.

Note. VAT transaction types do not control any transaction processing. They are used only to categorize transactions for accounting and reporting. For example, simply specifying EXEMPT as the VAT transaction type for your customer does not prevent your customer from being charged VAT on the invoice. Whether the customer is charged VAT depends on the VAT treatment, the VAT applicability of the transaction line, and the taxable status of the customer.

Page Used to Define VAT Transaction Types

Setting Up VAT Transaction Types

Access the VAT Transaction Type page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Transaction Type).

Enter a description and short description.

Setting Up VAT Authorities, and Tax Codes

To set up VAT authorities and tax codes, use the following components:

• Express VAT Code (EX_TAX_CD_VAT).

• Value Added Tax Authority (TAX_AUTHORITY_VAT).

• Value Added Tax Code (TAX_CODE_VAT).

• VAT Accounts by Business Unit (TAX_BU_CODE_VAT).

Use the TAX_CODE_VAT component interface to load data into the tables for the Value Added Tax Code component, and use the TAX_BU_CODE_VAT component interface to load data into the tables for the VAT Accounts by Business Unit component.

This section provides an overview of VAT authority and tax code setup and discusses how to:

• Define VAT codes using the Express VAT Code page.

• Define VAT authorities.

• Define VAT codes using the Value Added Tax Code page.

• Define VAT accounting information.

• Specify ChartFields for VAT transactions types using Express Setup.

• Enter VAT ChartFields for VAT transaction type exceptions.

• (Optional) Define VAT accounts by general ledger business unit.

Understanding VAT Authority and Tax Code Setup

Defining VAT rates, VAT codes, and VAT accounting involves:

• Defining VAT rates in the VAT authority tables.

• Defining VAT codes by associating the VAT authorities with those VAT codes.

• Specifying VAT accounting information for each VAT code.

Defining VAT Authorities

You create one VAT authority for each different VAT rate that you require, then associate one or more of these VAT authorities with a VAT code. The VAT rate associated with the VAT code is the total of the rates specified on all the associated VAT authorities. In most countries, you would specify only one VAT authority with a given VAT code. However, in some cases, you may want to indicate that a single VAT rate really consists of more than one component; and in this case, you would specify multiple VAT authorities for the VAT code. An example would be Canada's Harmonized Sales Tax (HST), which comprises a federal component of Goods and Services Tax (GST) and a provincial component for those provinces participating in the HST.

Defining VAT Codes and VAT Accounting Information

In many cases, to balance VAT account balances in PeopleSoft General Ledger with your VAT return, VAT must be accounted for separately for each VAT rate. For this reason, when you define each VAT code, you must also define the VAT accounts to be used for posting the VAT recorded at that rate. For each VAT code, VAT accounting information must be specified for each of the VAT accounting entry types. These VAT accounting entry types represent the different types of VAT accounting entries that may be required throughout the system.

When defined at the VAT accounting entry type level, the accounting information defined for a given accounting entry type applies to the combination of that VAT accounting entry type and all VAT transaction types. However, if you need to account for VAT at a more detailed level, you can override the VAT accounting information defined at the VAT accounting entry type level and, instead, define the accounting information for specific VAT transaction types.

Methods for VAT Authority, VAT Code, and VAT Accounting Setup

PeopleSoft software provides two methods for setting up VAT authorities, VAT codes, and VAT accounting information:

• Use the Express VAT Code page to define the VAT authority and VAT code at the same time.

  You use this method if you need to define only a single VAT authority for each VAT code. You simply enter the VAT rate that you want associated with the VAT code and the system automatically creates the VAT authority. With this method, you specify default input VAT and output VAT accounts, and these defaults are supplied to the appropriate VAT accounting entry types. At this point, you need to update only the information for individual VAT accounting entry types for which the default does not apply.

• Use the VAT Authority page to define VAT authorities and then define VAT codes and associate the VAT authorities using the Value Added Tax Code component.

  With this method, you set up your accounting information on the Value Added Tax Code component. You can either use the Express Setup page to specify default input VAT and output VAT accounting that the system populates to all VAT accounting entry types, or individually update the VAT accounting information for each VAT accounting entry type.

  If you are a public service type organization in Canada, you may also be entitled to a rebate on your input VAT. VAT rebates are calculated based on statutory rebate rates defined for each type of public service organization or Public Service Body by each Canadian VAT authority. Because VAT codes for Canada may be made up of more than one VAT authority, you define the rebate rates for each applicable Public Service Body Type using the Value Added Tax Authority component.

If you are using more than one general ledger business unit and more than one chart of accounts, you can also set up VAT accounts by VAT code and general ledger business unit. You can specify a default set of input and output VAT ChartFields, or set up exceptions for specific VAT transaction types.

Note. You should define a single setID for VAT information. This single setID enables access to only one chart of accounts when you define VAT account information by VAT code. When you define VAT accounts by VAT code and general ledger business unit, the system uses the business unit value to access the ChartFields. This way, you can define VAT accounting information in each different chart of accounts as needed.

Pages Used to Set Up VAT Authorities, Tax Codes, and Accounting Information

Defining VAT Codes Using the Express VAT Code Page

Access the Express VAT Code page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, Express VAT Code).

For the VAT code you are adding, enter the VAT code, a description, and a short description.

Note. If you have PeopleSoft Billing, the short description prints on the bills.

Note. After you create a VAT code using this page, use the VAT authority and VAT code setup pages to complete setup of VAT authority and tax code and to make any adjustments. For example, for Canada, you can set rebate rates for each public service body.

Defining VAT Authorities

Access the Value Added Tax Authorities page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Authority, Value Added Tax Authorities).

1. Enter a description and a short description.

2. Enter the effective date, status, and tax percent.

   You can add multiple rows to this page enabling you to enter new values if tax rates change.

Note. Create a different tax authority for each VAT rate used in a country.

Establishing Public Service Body Type Rebates (CAN)

For Canadian public service organizations, access the Public Service Body Type page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Authority, Value Added Tax Authorities, Public Service Body Type).

VAT PSB Type (VAT public service body type)	Select the appropriate public service body type. Valid values are Charitable, Colleges, Hospital, Municipal, Non-Profit, School, and University.
VAT Rebate Rate	Enter the percentage set by Canadian law for rebates on input (nonrecoverable) VAT.

Note. You must create at least one VAT use type using the VAT Use Type component for each public service body type that you create.

Defining VAT Codes Using the Value Added Tax Code Page

Access the Value Added Tax Code page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Code, Value Added Tax Code).

SetID and VAT Tax Code	Enter the setID and VAT tax code.
Percent	Displays the total percentage based on the selected tax authority or authorities entered in the Authority Information group box.
Description and Short Description	Enter a description and short description. If you have PeopleSoft Billing, the short description prints on the bills.
Authority	Select the tax authority to which this VAT code is linked. A description and the associated tax percentage appear.

Note. You can associate one or more VAT authorities with a VAT code. The VAT rate associated with the VAT code is the total of the rates specified for the associated VAT authorities. For example, if you include two VAT authorities under a single VAT code, the first at 7 percent and the second at 8 percent, the rates combine for a total of 15 percent.

Usually, you set up one tax authority for each VAT code. If you need to link more than one VAT authority to one tax code, add more rows.

The total percentage (at the top of the page) is updated automatically whenever you add or modify VAT authorities and whenever you update the tax authority tables.

Defining VAT Accounting Information

Access the Value Added Tax Code - Accounting Information page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Code, Value Added Tax Code, Accounting Information).

Express Setup	Click to access the VAT Accounting Express Setup page to quickly set up default values for input and output VAT ChartFields. The system applies these defaults to all the applicable VAT accounting entry types.
VAT Accounting Entry Type	Lists all the VAT accounting entries that apply to the PeopleSoft applications that you installed. For example, if your installation includes only sales-related applications (such as PeopleSoft Order Management, Billing, and Receivables), you see only accounting entry types that are related to output VAT on sales. Clicking any of the VAT accounting entry types listed opens the VAT Accounting Exceptions page on which you can define specific ChartFields for VAT transaction type exceptions. Note. You can specify a single set of ChartFields for a VAT code using the Accounting Information or Express Setup page, and the system uses those values for all VAT transaction types used with that VAT code. However, if a certain type of transaction must be reported separately, then it is easier to reconcile the VAT reports to the general ledger if these transactions are posted to separate ChartFields.
All Values	Select to display all values when you click account. Otherwise, the system displays only those accounts that have been flagged in PeopleSoft General Ledger as VAT accounts.
Account	You must provide values for all the account ChartFields listed. You cannot save the page without recording an account number for each available field. If a particular account type is not applicable in your environment based on the applications installed, complete the Account field with a dummy value.
Alt Act (alternate account), Oper Unit (operating unit), Fund, Dept (department), Program, Class, Bud Ref (budget reference), Product, Project, Affiliate, Fund Affil (fund affiliate), and Oper Unit Affil (operating unit affiliate)	Complete these optional ChartFields as needed.

Specifying ChartFields for VAT Codes Using Express Setup

Access the VAT Accounting Express Setup page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Code, Value Added Tax Code, Accounting Information; click the Express Setup link on the Accounting Information page).

Setup Input VAT	Select to specify the ChartField information to be used for recording input VAT.
Setup Output VAT	Select to specify the ChartField information to be used for recording output VAT.

Specify the appropriate ChartField values. Click OK to return to the Accounting Information page.

Entering VAT ChartFields for VAT Transaction Type Exceptions

Access the VAT Accounting Exceptions page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Code, Value Added Tax Code, Accounting Information; click a VAT accounting entry type on the Accounting Information page or on the VAT Accounts by Business Unit page).

Type	The VAT transaction type for which you want to define an exception.
All Values	If you do not select this check box, you see only those accounts that have been flagged in PeopleSoft General Ledger as VAT accounts. Select the check box if you want to view all account values.

Enter the ChartField information that you want to modify for the account type.

Click OK to save your changes and return to the Accounting Information page.

(Optional) Defining VAT Accounts by General Ledger Business Unit

Access the VAT Accounts by Business Unit page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, Accounts by Business Unit, VAT Accounts by Business Unit).

Delete	Click to delete all entries for this combination of general ledger business unit and VAT code. For example, if you entered a set of defaults for a general ledger business unit and later decided this was not necessary, you would access this page for the general ledger business unit and use the Delete button to delete all entries.
Express Setup	Click to access the VAT Accounting Express Setup page to quickly set up default values for input and output VAT ChartFields. The system applies these defaults to all the applicable VAT accounting entry types.
VAT Accounting Entry Type	Lists all the VAT accounting entries that apply to the PeopleSoft applications that you installed. For example, if your installation includes only sales-related applications (such as PeopleSoft Order Management, Billing, and Receivables), you see only accounting entry types that are related to output VAT on sales. Clicking any of the VAT accounting entry types listed opens the VAT Accounting Exceptions page, on which you can define specific ChartFields for VAT transaction type exceptions. Note. You can specify a single set of ChartFields for a VAT code using the Accounting Information or Express Setup page, and the system uses those values for all VAT transaction types used with that VAT code. However, if a certain type of transaction must be reported separately, then reconciling the VAT reports to the general ledger is easier if these transactions are posted to separate ChartFields.
All Values	Select to display all values when you click account. Otherwise, the system displays only those accounts that have been flagged in PeopleSoft General Ledger as VAT accounts.
Account	You must provide values for all the account ChartFields listed. You cannot save the page without recording an account number for each available field. If a particular account type is not applicable in your environment based on the applications installed, complete the Account field with a dummy value.
Alt Act (alternate account), Oper Unit (operating unit), Fund, Dept (department), Program, Class, Bud Ref (budget reference), Product, Project, Affiliate, Fund Affil (fund affiliate), and Oper Unit Affil (operating unit affiliate)	Populate these optional ChartFields as needed.

Defining VAT Countries

To define VAT countries, use the VAT Country Definition component (COUNTRY_VAT).

This section discusses how to define VAT countries.

Page Used to Define VAT Countries

Defining VAT Countries

Access the VAT Country Options page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Country Options).

VAT Default	Click to access the VAT Defaults Setup page. The system transfers you directly to the VAT Defaults Setup component with the applicable fields for the VAT country driver and entered VAT country. Here you can specify VAT defaults for the country. Note. This is the same page you can access using the VAT Defaults Setup component described later in this chapter.
VAT Return ID Type	Specify the type of VAT registration ID for the system to use when completing your VAT return. If you use your VAT registration ID, select VAT. If you use a local tax ID, select Local. You define the IDs on the VAT entity.
EC Sales List ID Type	If your organization uses the EC sales list report, specify the type of VAT registration ID for the system to use on the report. If you use your EU VAT Registration ID, select VAT. If you use a local tax ID, select Local.
Treat Exported Service As	Use to define the handling of transactions for the sale of international services. Specify the treatment as either Zero-Rate or Outside the scope of VAT.
Service For Foreign Buyer	For services supplied domestically to a foreign buyer, specify whether to treat this service as a Domestic transaction or as a deemed Export.
Record VAT on Import Goods As	For imported goods, specify whether to record the VAT as Inpt/Outpt (input/output) VAT to self-assess the VAT, or Input Only, which is assumed to be zero because the customs VAT is recorded on a third-party voucher.
Use VAT Suspension	Select if this country grants suspension from VAT to qualifying organizations.
Track VAT by Province, Track VAT by Department, or Track VAT by Bundesland	Select if this country tracks VAT at a subcountry level. Note. The exact wording of this field depends on how you defined the state label for this country on the main Country page.
Apply Domestic Reverse Charge	Select to enable the domestic reverse charge for countries that require the use of the reverse charge provision for certain goods. The domestic reverse charge applies to sales within the UK where specified goods are purchased by a VAT-registered business for business purposes (sales to nonbusiness customers are unaffected by the change, and normal VAT rules apply).
VAT Authority Name and Short Name	Enter the VAT authority long name and short name. This is displayed on domestic reverse charge-applicable invoices and indicates the VAT authorities to which the customer must pay the self-assessed output VAT.

See Also

Setting Up and Maintaining VAT Defaults

Setting Up VAT Entities

To set up VAT entities, use the VAT Entity ID component (VAT_ENTITY_ID).

Use the VAT_ENTITY_ID component interface to load data into the tables for the VAT Entity ID component.

This section provides an overview of VAT entity setup and discusses how to:

• Enter VAT entity identification information.

• Specify VAT report addresses.

• Define VAT exceptions.

• Define VAT report details.

Understanding VAT Entity Setup

VAT entities are the level within your organization at which the VAT return is filed. You can associate one or more PeopleSoft General Ledger business units with a VAT entity. The PeopleSoft Asset Management, Billing, Receivables, Purchasing, Payables, Expenses, Treasury and, indirectly, Order Management business units associated with those general ledger business units are then VAT-enabled and all of the transactions for PeopleSoft Asset Management, Billing, Receivables, Payables, Expenses, and Treasury are available for reporting by the VAT entity.

Because the VAT entity is the entity that reports VAT, the following parameters related to filing the VAT return are recorded here:

• VAT addresses.

• VAT exceptions (exoneration or suspension).

• VAT report details

• Intrastat report details.

Complete these steps to set up VAT entities:

1. Create a VAT entity.

   A VAT entity can have multiple business units associated with it, but a general ledger business unit cannot be associated with more than one VAT entity.

2. Define the address to be used by the organization.

3. Indicate whether the VAT entity is exempt from paying VAT in a particular country.

   VAT entities are purchasing organizations, so they are sometimes granted an exemption from paying VAT because of the nature of their business. The exemption may be temporary or permanent. For example, most governments grant government agencies a permanent exoneration from paying VAT because the agencies are part of the government. In France, a VAT entity may be granted a temporary suspension from paying VAT if it regularly receives a large VAT refund. The government may grant a temporary suspension to reduce or eliminate the refund.

4. Define VAT report details, such as the contact information printed on reports and the process used to run reports.

Pages Used to Set Up VAT Entities

Entering VAT Entity Identification Information

Access the Identification page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Entity, Identification).

VAT Entity	Code identifying the VAT reporting entity.
Description and Short Description	Enter a description and short description.

Registration

Use this group box to specify every country where this VAT entity is registered. To add more countries, add more rows. You can select only from countries defined on the VAT Country Definition page.

GL Business Units

Use this group box to link the VAT entity to one or more general ledger business units. A VAT entity can have multiple business units associated with it, but a general ledger business unit cannot be associated with more than one VAT entity.

Note. For PeopleSoft Billing, linking a general ledger business unit to a VAT entity on this page does not automatically enable VAT for any PeopleSoft Billing business units already associated with the general ledger business unit. After you link the general ledger business unit to a VAT entity, you must go to the Billing Business Unit page to relink your Billing business unit to this general ledger business unit.

See Also

Setting Up and Running Intrastat Reports

Establishing VAT Defaults

Specifying VAT Report Addresses

Access the VAT Report Addresses page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Entity, Identification; click the VAT Addresses link on the Identification page).

Note. You use this page to specify report addresses for your VAT return. These addresses can be used differently by each country. For example, in Germany, this page is used to print the address to which the VAT return is sent. Elsewhere, it is used to print the address of the reporting organization.

You can add multiple rows for different report types. Click OK to save your changes and return to the Identification page.

Defining VAT Exceptions

Access the VAT Entity - Exceptions page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Entity, Identification; click the Exception Details link on the Identification page).

Effective Date and Status	Specify the effective date and status for each exception that you enter.
End Date	Enter the date that the exoneration or suspension ends, if applicable.
Exception Type	Select the type of exception. Options are: None. Exonerated: Select if the VAT entity is permanently excused from paying VAT. Suspended: Select if the VAT entity is temporarily excused from paying VAT.
VAT Certificate ID	Sometimes a government issues a certificate to show proof of an exception. Use this field to enter the VAT Certificate ID that was issued.

Note. Generally, when an organization receives a temporary suspension from paying VAT, the suspension applies until a specific date or until the organization reaches a specified purchasing limit. Any limit based on the amount of purchases is not tracked in the PeopleSoft system; you must track it manually.

Click OK to save your changes and return to the Identification page.

Defining VAT Report Details

Access the VAT Entity - VAT Reports page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Entity, Identification; click the VAT Report Details link on the Identification page).

Reporting Currency	Select the currency to print on VAT returns for this country. If reporting currency amounts have not been entered on the transaction and if the transaction and base currencies differ from the reporting currency, conversion occurs when the report extract runs.
Contact Name, Telephone, Ext, Fax Number, Vat Email Contact	Enter the applicable contact information.
Process Type	Select the applicable process type for the report.
Process Name	Select the process name for this report.

Click OK to save your changes and return to the Identification page.

Note. You cannot run a VAT report unless you specify a process type and name on this page. You define a VAT report using the VAT Report Definition component described later in this chapter.

In addition, the VAT Transaction report cannot be used for an entity unless it is also defined here.

Defining VAT Use Types and Apportionment

To define VAT use types and apportionment, use the VAT Use Type component (VAT_USE_ID) and the VAT Apportionment component (VAT_APORT). If you are using coefficients of recoverability (FRA) for VAT apportionment, use the VAT Recoverability Attributes component (AM_VAT_ATTRIBUTES) and the VAT Recoverability Adjustments component (AM_VATRCVR_RQST).

This section provides an overview of VAT use type and apportionment setup and discusses how to:

• Define VAT use types.

• Define VAT apportionment.

• (FRA) Define VAT recoverability attributes.

• (FRA) Generate VAT recoverability adjustments.

Understanding VAT Use Type and Apportionment Setup

A VAT use type categorizes the use of a good or service by the tax status of the activity in which it is used—the tax status of the goods or services ultimately produced from those procured. VAT use is one of the main determinants in the recoverability of input VAT.

Note. If you are a public service organization in Canada and are eligible to receive a rebate on input VAT, you need to enter a public service body type. If more than one public service body type is applicable to your organization, at least one VAT use type is required for each public service body type selected.

You can specify the ratio of taxable activity to nontaxable activity directly on the use type, or you can specify that mixed apportionment be used to define the ratio of taxable to nontaxable activity at the ChartField level.

If you select the mixed apportionment check box, you must have completed VAT apportionment prior to entering transactions for the selection to be valid. When you select this VAT use type on a transaction, the taxable and exempt percentages apply to the calculation of recoverable and rebate VAT only if, on the transaction, either the business unit specified as the VAT apportionment control or one of the two ChartFields defined as priority ChartFields for VAT apportionment contains a value defined under VAT apportionment. If neither the business unit nor either of the ChartFields contains a value defined for VAT apportionment, the VAT recovery and VAT rebate percentages will be zero, resulting in all VAT being recorded as nonrecoverable. For this reason, you must specify enough VAT Apportionment data so that a match is always found.

VAT apportionment is a mechanism that enables recoverability to be determined based on either the VAT apportionment control business unit or one of the two priority ChartFields that you specify on the VAT Apportionment page and to which a transaction is posted. For each business unit, Priority 1, or Priority 2 ChartField value, you enter the percentage of activity that is taxable or exempt. The system automatically calculates the other value so that the total of the percentages equals 100. When this business unit or ChartField value is entered on a transaction together with a VAT use type that indicates that mixed apportionment is applicable, the corresponding taxable activity and exempt activity percentages are used to calculate recoverable, rebatable, and nonrecoverable VAT.

VAT apportionment setup is not required to establish your VAT environment. However, if you are unable to identify the taxable and exempt portions of a given activity for purposes of determining recoverability, it enables you to apportion that activity by general ledger business unit or ChartField. Typically, VAT apportionment is used by organizations with very complex recoverability issues. The concept behind VAT apportionment is that usage can be determined by business unit or ChartField, enabling usage to vary based on a business unit, department, or project in which the purchase is to be used. VAT apportionment is not a mechanism for distributing VAT across multiple VAT accounts.

When you set up your VAT environment, you need to consider whether VAT on a good or service is recoverable, and if so, to what extent.

Here's how you set up VAT rebates and recovery:

1. Define the VAT use type and indicate whether a given purchase will be used in an activity that is anywhere from 100 percent taxable to 100 percent exempt.

   Specify the ratio of taxable activity to nontaxable activity directly on the use type, or you can specify that mixed apportionment be used to define the ratio of taxable to nontaxable activity at the ChartField level.

2. Define VAT apportionment if you require that recoverability be determined based on the business unit or ChartField to which the purchase or expense is being posted.

   You must set up VAT apportionment if you have defined any VAT use types as using mixed apportionment. You must also make sure that you have specified the type of business unit to be used as the VAT apportionment control for each of your VAT-enabled PeopleSoft Payables, Purchasing, General Ledger, Expenses, and Treasury business units. You set this up for each applicable business unit VAT driver in the common VAT defaults table.

   Note. If your organization does not require tracking VAT recoverability at this level, you do not need to set up VAT apportionment information. VAT apportionment is used by organizations with very complex recoverability issues. The concept behind VAT apportionment is that usage can be determined by business unit or ChartField, enabling usage to vary based on a business unit, department, or project in which the purchase is to be used. VAT apportionment is not a mechanism for distributing VAT across multiple VAT accounts.

French VAT

Some French companies are required to use the VAT Use Type and the VAT Apportionment to store the temporary recoverable VAT at asset purchase time. In some cases, the recoverability of VAT is not definite. This is the case of adjustments applicable to assets, assets in service since January 1, 2008 and adjustments applicable to other goods or services. The final base is unknown until the end of the period. PeopleSoft provides for the calculation of recoverability adjustments to register the gap between the temporary and final VAT recoverability at the end of the year, as well as access to auditable data. The apportionment represents the product of three recoverability coefficients and the adjustments to the recoverable VAT amounts are recognized when final recoverability data reflects a significant difference from the estimated ratios that are used to determine recoverability

Prerequisites and required setup for French VAT include the following:

1. Assets that are expected to register VAT attributes information and be eligible for the adjustment process must have an asset class, which includes the VAT recoverability adjustment period.

   See Setting Up Asset Classes.

   See PeopleSoft Enterprise Asset Lifecycle Management Fundamentals 9.1 PeopleBook, Establishing Asset Processing, Setting Up Asset Classes.

2. The asset profile must be configured to point to asset classes with the number of years populated.

3. Define coefficients of recoverability for the VAT Use Type.

4. Enable coefficients of recoverability for VAT apportionment.

5. Define VAT recoverability attributes.

Pages Used to Define VAT Use Types and Apportionment

Defining VAT Use Types

Access the VAT Use Type page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Use Type).

Enter an effective date, status, description, and short description.

Note. If your organization consists of more than one public service body type, each public service body type requires at least one VAT use type.

Defining VAT Apportionment

Access the VAT Apportionment page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Apportionment).

ChartField Priority 1	The ChartField that you enter here is the first ChartField the system uses when it attempts to retrieve VAT recovery data from VAT apportionment. For example, if you define the priority 1 ChartField as Project, the system attempts to find a row in the VAT apportionment table where the priority 1 ChartField value resembles the project ID from the transaction.
ChartField Priority 2	Enter the ChartField to use in a second pass when the first attempt to retrieve VAT recovery data from VAT apportionment is unsuccessful.

You can equate ChartField priority 1 to the lowest level in the PeopleSoft control hierarchy, and ChartField priority 2 to the next highest level. Priority 1 takes precedence when found, then priority 2, while the business unit acts as the default.

Note. VAT apportionment does not use the combination of the priority 1 and priority 2 ChartFields and business unit. The system first looks for a match in the VAT apportionment data for the priority 1 ChartField value. If it finds no match, it looks for a match in the VAT apportionment data for the priority 2 ChartField. If it still finds no match, it looks for a match in the business unit.

VAT Apportionment Detail

Use this grid to specify values for the ChartFields for one or more business units. The business units may be transaction business units or PeopleSoft General Ledger business units. The system uses either the transaction business unit, the transaction's general ledger business unit, or the distribution line general ledger business unit to access VAT apportionment information, based on the type of business unit you define as the VAT apportionment control for the PeopleSoft Payables, Purchasing, General Ledger, Expenses, and Treasury business unit VAT drivers in the common VAT defaults table.

The system looks at the transaction ChartField value, and then looks for a match. If it finds a match in VAT apportionment, it stops. If it does not find a match in VAT apportionment, it removes the last character of the transaction ChartField value and looks again for a match. It repeats this process until it finds a match or no more characters exist to remove. If it does not find a match in VAT apportionment for either the priority 1 or priority 2 ChartField, it then looks for an exact match for the business unit. If it still does not find a match, the VAT recovery and rebate percentages become zero by default, resulting in all VAT being recorded as nonrecoverable. For this reason, you must specify enough VAT apportionment data so that a match is always found.

(FRA) Defining VAT Recoverability Attributes

Use the VAT Recoverability Attributes page to manage effective-dated VAT recoverability data by business unit, asset id, voucher and voucher line for those assets associated with a GL business unit that have been flagged for VAT recoverability adjustments. The AP/AM integration passes VAT recoverability attributes to PeopleSoft Asset Management for asset-applicable vouchers that are eligible for VAT recoverability adjustments. The VAT recoverability attributes that are captured during the AP/AM integration populate the Asset Management VAT Recoverability Attributes record.

Access the VAT Recoverability Attributes page (Asset Management, Taxes, Calculate Local Taxes, VAT Recoverability Attributes, VAT Recoverability Attributes).

The VAT Recoverability Attributes and VAT Recoverability Adjustments display in the respective grids based on the transaction information that you select.

The Update Final Coefficients option for the VAT Recoverability Adjustments process (AM_VAT_RCVR) reads all active VAT Use Type records with an effective date greater than the regularization year and updates active rows on the Asset Management VAT Recoverability Attributes record with the final coefficient of constraint, coefficient of taxation, coefficient of admission and recoverability coefficient for the specified regularization year (spans from January 1 to December 31). Prior to executing the yearly final coefficients update, manually update the VAT Use Type and the VAT Apportionment records with the final coefficients at the beginning of the calendar year. Coefficients entered with an effective date of 2009, for example, represent the final coefficients for the 2008 regularization year and temporary coefficients for 2009.

VAT Recoverability Adjustments

This group box displays the VAT recoverability adjustments by adjustment date as well as final coefficients resulting from the VAT Recoverability Adjustments process (AM_VAT_RCVR).

(FRA) Generating VAT Recoverability Adjustments

Use the VAT Recoverability Adjustments page to run the French VAT Recovery process (AM_VAT_RCVR) that evaluates, calculates and generates accounting entries for VAT recoverability adjustments. This process enables retroactive recording and reporting of adjustments.

Access the VAT Recoverability Adjustments page (Asset Management, Taxes, Calculate Local Taxes, VAT Recoverability Adjustments, VAT Recoverability Adjustments).

When you run the VAT Recoverability Adjustments process in Draft mode, if a significant variance is calculated, an adjustment row is generated in the AM_VATT_ATTR_L2 table (displays in the grid at the bottom of the VAT Recoverability Attributes page) for the designated regularization year with a Temporary status. When you run the VAT Recoverability Adjustments process in Final mode, if running for the first year, the Final Coefficients are updated in AM_VAT_ATTR_L1. The row in AM_VAT_ATTR_L2 then shows a status of Posted and becomes unavailable. This process also updates the reference set of coefficients if the regularization year that you specify on the run control equals the initial recoverability year. In Final mode, VAT adjustments are generated in the AM VAT Transaction record (AM_VAT_TRANS) and accounting entries are posted (DIST_LN). You can also create queries to review the VAT attributes and recoverability adjustments that are generated in the respective records.

Establishing VAT Defaults

To establish VAT defaults, use the following components:

• VAT Defaults Setup (VAT_DFLT_SRCH_DTL).

• Service VAT Sub-Search (VAT_DEF_SER_SEARCH).

This section provides an overview of VAT defaults setup and discusses how to:

• Access the VAT Defaults Setup page.

• Set up and maintain VAT defaults.

• Copy VAT default setup.

• Review VAT field descriptions by VAT driver.

• Access the Service VAT Treatment Defaults Setup page.

• Set up and maintain service VAT treatment drivers.

• Copy service VAT treatment drivers.

• Validate VAT default setup.

• Override VAT defaults and controls on transaction entry VAT pages.

See Also

VAT Defaults

Understanding VAT Defaults Setup

By providing common components for establishing VAT defaults for all installed applications that process VAT transactions, PeopleSoft software provides the tax expert in your organization the ability to see and access all VAT default setup from a shared menu. In addition, this same default setup can be accessed from the various application pages.

Note. Generate the VAT 3000 report after setting up defaults to validate VAT default setup data and to expose any inconsistencies and missing default values.

VAT Defaults

VAT defaults may be defined for many VAT drivers, and these VAT drivers make up all the levels of the defaults hierarchy. Common default records are used to store the hierarchical default data in such a way as to make retrieval of the appropriate defaults efficient. For example, a VAT default specified for an item, expense type, or product should be used before a default for a category or product group. Furthermore, within each VAT driver defaults specified by country and state are more specific and come before defaults by country only, which in turn are more specific and come before defaults for which both the country and state are blank.

You can establish VAT settings for all applicable VAT drivers using the VAT Defaults Setup component. You access the component by first selecting a VAT driver. The drivers available to you are based on the applications installed. A sub-search page appears on which you can enter more specific search criteria or driver keys. Clicking the search button accesses the VAT Defaults Setup page. The default VAT data that appears is determined by the combination of the VAT driver and VAT driver keys. You then enter the required defaults and any optional defaults as needed and save the changes.

Service VAT Treatment Defaults

If you need to establish default values for the additional VAT treatment determinants specific for services, you can do this using the Services VAT Treatment Defaults Setup component. Like the VAT Defaults setup component, this component uses VAT drivers to provide the default values at various levels of the hierarchy. For any applicable driver, you can define the place of supply of the service or the place where the VAT is liable, whether it is the supplier's countries, the customer's countries, or the place where the service is actually performed depending on the type of service. You can also specify whether the service is freight transport or other.

Understanding VAT Drivers, VAT Driver Keys, and the Default Hierarchy for VAT Defaults

The following table lists the VAT drivers and associated VAT driver keys in VAT default hierarchy sequence from most specific to least specific for the VAT Defaults component. This table also indicates which drivers also control defaults for the services VAT treatment:

Pages Used to Establish VAT Defaults

Accessing the VAT Defaults Setup Page

Access the VAT Defaults Setup page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Entity, Identification; enter search criteria on the VAT Default Sub-Search page and click Search).

1. Navigate to Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Defaults.

   A search window appears.

2. Select the VAT driver that you want to maintain or set up and click Search.

   The VAT drivers listed are based on the installed applications. A VAT Default Sub-Search page appears.

3. Optionally, enter any or all of the VAT driver keys that appear, the VAT reporting country, and default state or province, as applicable.

   Click Search.

4. The system accesses the VAT Defaults Setup page and displays all VAT default data for the rows matching the VAT driver option selected and VAT driver keys entered.

   In addition, the system displays only the applicable VAT default fields.

Setting Up and Maintaining VAT Defaults

Access the VAT Defaults Setup page (enter search criteria on the VAT Defaults Sub-Search page and click Search).

Note. The VAT default fields that appear vary based on the VAT driver. In addition, the VAT default data is based on the VAT driver and VAT driver keys used to access this page.

Use the page to specify a value for all the required fields, for any fields requiring an overall default at the top of the VAT default hierarchy, or for any fields requiring an exception to the value specified for a VAT driver higher up in the VAT default hierarchy.

You can insert rows for any or all of the VAT driver keys as well as the VAT country or state. You can also delete any existing rows.

Note. The remaining fields on the page vary based on the combination of VAT driver and VAT driver keys. See the section on VAT fields for details of the fields that appear and the VAT drivers for which they appear in hierarchy order.

See Also

Reviewing VAT Field Descriptions by VAT Driver

Copying VAT Default Setup

Access the Copy VAT Defaults From page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Defaults; enter search criteria on the VAT Default Sub-Search page, click Search, and click the Copy Defaults From link on the VAT Defaults Setup page).

Copy From Search Criteria	Enter the criteria on which you want to search. You can search by setID, VAT reporting country, and defaulting state.
Search	Click to retrieve the results based on the criteria entered. The results appear in the Copy From Results group box.
Copy From Results	In the Copy From Results group box, click the link for any of the results returned to view the details of the VAT setup from which to copy on the Copy VAT Defaults Setup page. Once you have viewed the details, you can click Copy to copy the VAT setup. The system returns you to the VAT Defaults Setup page with the copied fields. Or you can select the appropriate option for any of the results returned and click Copy to copy from the selected row. The system returns you to the VAT Defaults Setup page with the copied fields.

Reviewing VAT Field Descriptions by VAT Driver

The following tables list the available VAT fields, field descriptions, and VAT drivers for which they appear. The drivers are listed in reverse hierarchy order, from least specific to most specific. The tables also indicate on which driver the VAT field is required. Fields can be overridden at lower levels of the hierarchy as needed.

VAT Control Defaults

This table lists the fields by VAT driver that control how and when VAT is applied and calculated:

VAT Code Defaults

VAT codes specify the rate at which VAT is calculated. The following table lists the available VAT code default fields and the VAT driver for which they are available. Select the most frequently used VAT code for each VAT code field at the highest level of the VAT default hierarchy, and then specify exceptions at the lower levels of the hierarchy as necessary.

VAT Transaction Types Defaults

VAT transaction types classify and categorize transactions at a more detailed level for both VAT reporting and accounting. The following table lists the available types of VAT transaction type defaults and the VAT drivers for which they are available. Select the most frequently used VAT transaction type for each VAT Transaction Type field at the highest level of the VAT default hierarchy, and then specify exceptions at the lower levels of the hierarchy as necessary.

Accessing the Service VAT Treatment Defaults Setup Page

To access the Service VAT Treatment Defaults Setup page:

1. Navigate to Setup Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, Service VAT Treatment Defaults.

   A search window appears.

2. Select the VAT Driver that you want to maintain or set up and click Search.

   The VAT drivers listed are based on the installed applications. A Service VAT Treatment Defaults Sub-Search page appears.

   Note. The VAT drivers table provided previously in this section lists the VAT drivers on which you can specify service VAT treatment defaults.

3. Enter any or all of the VAT driver keys that appear, the supplier's location country, and supplier's location state, as applicable, and then click Search.

   The system accesses the Service VAT Treatment Defaults Setup page and displays all service VAT treatment default data for the rows matching the VAT driver selected and VAT driver keys entered.

Setting Up and Maintaining Service VAT Treatment Defaults

Access the Service VAT Treatment Defaults Setup page (Setup Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, Service VAT Treatment Defaults; enter search criteria on the Service VAT Treatment Defaults Sub-Search page and click Search).

You can insert rows for any or all of the VAT driver keys as well as the supplier's location country or state. You can also delete any existing rows.

See Also

Reviewing VAT Field Descriptions by VAT Driver

Copying Service VAT Treatment Drivers

Access the Copy Service VAT Treatment Defaults From page (Setup Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, Service VAT Treatment Defaults; enter search criteria on the Service VAT Treatment Defaults Sub-Search page and click Search, and then click the Copy Defaults From link on the Service VAT Treatment Defaults Setup page).

Validating VAT Default Setup

Access the VAT Set Up Validation Report page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Set Up Validation Report).

Generate the VAT 3000 VAT Set Up Validation report to confirm that VAT defaults have been set up correctly and that defaults that are required at the highest levels in the hierarchy have been defined.

Overriding VAT Defaults and Controls on Transaction Entry VAT Pages

Access the applicable transaction entry VAT page from the PeopleSoft application. The name of the page varies based on the application. The following example shows the Invoice Line VAT Information page accessed from a voucher line in PeopleSoft Payables.

Selecting or deselecting the Reverse Charge Goods check box and then clicking the Adjust button adjusts the VAT Treatment, Record Output VAT, and other related defaults.

You can override default VAT settings on individual transactions from the applicable PeopleSoft application pages. For example, you can override VAT settings for a voucher line by accessing the Invoice Line VAT Information page from the Voucher component. While the fields that appear on this page may vary based on the application, the page acts in much the same way.

Note. The VAT defaults appear in descending order of effect. If you change any settings on this page, you should work from the top of the page to the bottom, clicking the Adjust Affected VAT Defaults button as appropriate.

Adjust/Reset VAT Defaults

A section at the bottom of the page enables you to adjust the VAT defaults based on changes you make on this page or to reset all VAT defaults.

Physical Nature

VAT Locations

The VAT location fields are populated by the applications. Values in these fields are never affected by changes to any of the VAT default fields and are never updated when you click the Change Physical Nature, Adjust Affected VAT Defaults, or Reset All VAT Defaults button. The possible VAT locations are:

• Bank Country

• Buyer's Location Country

• Buyer's Location State

• Consumption Country

• Consumption State

• Location Country

• Location State

• Seller's Location Country

• Seller's Location State

• Service Performed Country

• Service Performed State

• Ship From Country

• Ship From State

• Ship To Country

• Ship To State

• Ship To VAT Rgstrn Country

VAT Registrations

The fields for VAT registration defaults include:

• Reporting Country

• Default State

• Bank, Customer, or Vendor Registration Country

• Bank, Customer, or Vendor Registration ID

• Exception Type

• Exception Certificate ID

Any changes that you make to these values with the exception of the exception type and exception certificate ID affect all VAT default settings if you click the Adjust Affected VAT Defaults button after making changes.

If you change the exception type, only the VAT transaction type and VAT code defaults are adjusted when you click the Adjust Affected VAT Defaults button.

VAT Controls

If you change the default setting in the Calc on Advance Payments field or the Domestic Reverse Charge Goods check box, and click the Adjust Affected VAT Defaults button, the system updates all VAT default settings.

Changes to any other VAT control fields do not affect other VAT defaults. Also, if you change any of the following fields and click the Adjust Affected VAT Defaults button, your changes will be lost if you have also changed fields that affect the VAT control fields:

• Calculate at Gross or Net

• Recalculate at Payment.

• Calculation Type

• Declaration Point

• Declaration Date

• Accounting Entry Type

• Rounding Rule

• Non-Recovery Charge

• Use Type

• Apportionment Control

• Recovery Source

• Rebate Source

• Reclaim Percent

• Include Freight

• Include Miscellaneous

• In Reporting Currency

• No VAT Receipt

• Prorate Non-Recoverable

• Allocate Non-Recoverable

VAT Treatments

Examples

These examples illustrate the behavior of the VAT defaults:

• Example 1

  The user overrides the Calculate at Gross or Net field and clicks the Adjust Affected VAT Defaults button. The system does nothing, because Calculate at Gross or Net is a VAT control field that does not affect any other VAT defaults. The user then overrides the vendor registration country and clicks the Adjust Affected VAT Defaults button once more. This time the system adjusts all the VAT defaults except the change to the vendor registration country. This includes the Calculate at Gross or Net field, which the user must override again, if necessary.

• Example 2

  The user overrides the vendor registration country and clicks the Adjust Affected VAT Defaults button. The system adjusts all VAT defaults except the change to the vendor registration country and vendor registration ID. The user then overrides the place of supply settings and clicks the Adjust Affected VAT Defaults button once more. The system adjusts all VAT defaults except the service type, place of supply, vendor registration country, and vendor registration ID.

See Also

VAT Defaults

Managing VAT on Interunit Transactions

To manage VAT on interunit transactions, use the Business Unit Interunit Option component (VAT_BU_OPT) and the Business Unit Interunit Pairs component (VAT_BU_PAIR).

This section provides an overview of VAT on interunit transactions and discusses how to:

• Specify accounting for VAT on interunit transactions by setID.

• Define accounting treatment for interunit transactions for GL business unit pairs.

Understanding VAT on Interunit Transactions

PeopleSoft software enables you to manage how you account for and report VAT on interunit transactions, including those that cross legal entities and VAT jurisdictions.

VAT accounting entries are divided into the following three types, or accounting entry groups:

• Non-recoverable input VAT.

• Other input VAT.

• Output VAT.

Note. Output VAT recorded on purchases is included with other input VAT to ensure that the input VAT and associated output VAT are recorded together.

When you enter transactions in PeopleSoft Payables, Expenses, and General Ledger, the transactions as a whole are associated with a general ledger business unit. However, you can enter a different general ledger business unit on the distribution line.

You use general ledger business unit source options to specify where you want the different types of VAT accounting entries to be posted. You can specify the general ledger business unit to be used for each of the three types of VAT accounting entries for interunit transactions in the following way:

• Distribution Line GL Business Unit.

  This selection allows the specified type of accounting entry to be posted to the general ledger business unit on the associated distribution line.

• Transaction (header) GL Business Unit.

  This selection allows the specified type of accounting entry to be posted to the general ledger business unit associated with the transaction as a whole.

In addition, you set up the general ledger business unit source options in two ways:

• By setID.

  This approach allows the same set of options to be shared by multiple general ledger business units. If you are using legal entities, you can set up separate sets of options for transactions that take place between two general ledger business units within the same legal entity and for transactions that take place between two general ledger business units that are in different legal entities. If you are not using legal entities, the options that you specify are applicable to all types of interunit transactions.

• By specific pairs of from and to general ledger business units.

  The options defined for a specific pair of general ledger business units always override the options defined at the more general, setID level.

  Note. You need to define options at this level only for exceptions to what you defined at the setID level.

Interunit Example

On the Procurement Accounting Controls, Expenses Business Unit, and General Ledger Business Unit pages, you can specify whether to prorate and post nonrecoverable VAT to the expense distribution ChartFields. If you have specified that nonrecoverable VAT is to be prorated, then the nonrecoverable VAT is always posted by the system to the Distribution Line GL Business unit along with the expense, regardless of the general ledger business unit option that you define for nonrecoverable VAT.

This example illustrates how an Italian business unit might generally record costs on behalf of business units in other VAT jurisdictions and how an exception in the handling of VAT for another Italian business unit is accomplished.

If an Italian business unit incurring costs for other business units must record, account for, and report VAT, but the actual expense must be recorded in the other business units, you specify on the VAT Business Unit Option page for the Italian setID that the Transaction (header) GL Business Unit be used for each of the three different VAT accounting entry groups. This results in all the VAT accounting entries being created for the Italian business unit allowing the reportable VAT to be included on the VAT return for the Italian VAT entity. Only the actual expense is accounted for as an interunit entry between the Italian and other business units.

However, if business units other than the Italian business unit are generally required to record, account for, and report the VAT, you specify that the Distribution Line GL Business unit is to be used for each of the different VAT accounting entry groups. This enables you to create all the VAT accounting entries for the other business units and, if appropriate, report them on the VAT return for the other VAT entities.

If the requirement is that the recoverable VAT be recorded by the Italian business unit, but any nonrecoverable VAT be passed to the other business unit as part of the cost, you specify that the Transaction (header) GL Business unit be used for Other Input VAT, while the Distribution Line GL Business unit be used for Non-Recoverable Input VAT. In this case, the accounting entry for the recoverable VAT is created for the Italian business unit, while the accounting entry for the nonrecoverable VAT is created for the other business unit. The recoverable VAT is then available to be reported on the VAT return for the Italian VAT entity.

Because the options that you select on the VAT Business Unit Option are intended to govern how the VAT on most but perhaps not all interunit transactions is handled for the business units making up the setID, you can define exceptions for transactions between specific business units on the VAT Business Unit Pairs page. For example, if an Italian business unit generally records, accounts for, and reports VAT on transactions with business units in other countries, but this is not intended to be the case for another Italian business unit, you can create the exception between the two business units by specifying the Distribution Line GL Business Unit as the source for the Italian business unit.

Pages Used to Manage VAT on Interunit Transactions

Specifying Accounting for VAT on Interunit Transactions by SetID

Access the Business Unit Interunit Option page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, Business Unit Interunit Option).

SetID	Specify how a business unit records each of the three types of VAT accounting entries by setID. Enter the setID that represents one or more general ledger business units that will be accounting for VAT on interunit transactions in the same way.
InterEntity GL Business Unit Source and IntraEntity GL Business Source	If you set up the system to use legal entities, you can specify the business unit source options separately for InterEntity and IntraEntity transactions. If the system is not using legal entities, you specify these options for interunit transactions.
Distribution Line GL Business	Select this option for each VAT accounting entry type that you want posted to the general ledger business unit at the distribution line level. For example, within PeopleSoft Accounts Payable this is the general ledger business unit specified on the distribution line.
Transaction GL Business	Select this option for each VAT accounting entry type that you want posted to the transaction, or header business unit. For example, within PeopleSoft Accounts Payable this is the general ledger business unit associated with the voucher as a whole. In other words, it is the general ledger business unit with which the vouchering Payables business unit is associated.

Defining Accounting Treatment for Interunit Transactions for GL Business Unit Pairs

Access the Business Unit Interunit Pairs page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, Business Unit Interunit Pairs).

From GL Business Unit	Enter the business unit for which you are creating the exception or exceptions.
To GL Business Unit	Enter business units that are exceptions. For example, if the from general ledger business unit generally records, accounts for, and reports VAT on interunit transactions involving VAT, you can specify that this be done instead by the general ledger business unit when you select Distribution Line GL Business for each of the VAT accounting types. You can add multiple exception business units.
Distribution Line GL Business	Select this option for each VAT accounting entry type that you want posted to the general ledger business unit at the distribution line level. For example, within PeopleSoft Accounts Payable, this is the general ledger business unit specified on the distribution line.
Transaction GL Business Unit	Select this option for each VAT accounting entry type that you want posted to the transaction, or header business unit. For example, within PeopleSoft Accounts Payable, this is the general ledger business unit associated with the voucher as a whole. In other words, it is the general ledger business unit with which the vouchering Payables business unit is associated.

Loading the VAT Transaction Table

This section provides an overview of VAT transaction table load, lists prerequisites, and discusses how to:

• Set up the run request for the VAT Transaction Loader process (FS_VATUPDFS).

• Run the VAT Transaction Loader process.

Understanding VAT Transaction Table Load

The VAT transaction table stores the detailed transaction information required for VAT reporting and is the primary source of information for all VAT reports. VAT transaction information is loaded into the VAT transaction table from PeopleSoft Payables, Billing, Receivables, Expenses, Treasury, General Ledger, and Asset Management through a background process. For each product, the transaction loader uses a VAT transaction source definition to determine what information to select from which tables. These VAT transaction source definitions are delivered with the PeopleSoft system.

To keep the VAT transaction table current, you need to periodically run the VAT Transaction Loader background Application Engine process (FS_VATUPDFS) that updates the VAT transaction table using VAT transaction information from PeopleSoft applications.

Before you run the process, the PeopleSoft application that is the VAT transaction source must have VAT-applicable transactions. You may also need to run application-specific processes to prepare the VAT transactions for the VAT transaction table.

See The PeopleSoft application PeopleBook for more information about whether you need to do this for the applications you have installed.

Prerequisites

The following application processes must run on transactions before the transactions can be picked up by the VAT Transaction Loader:

• PeopleSoft Payables

  Voucher Posting and, if applicable, Payment Posting.

• PeopleSoft Receivables

  Receivable Update.

• PeopleSoft General Ledger

  Journal Edit and Posting.

• PeopleSoft Expenses

  Post Liabilities.

• PeopleSoft Treasury

  Automated Accounting.

• PeopleSoft Billing

  Finalization and Currency Conversion.

• PeopleSoft Asset Management

  Calculate Depreciation and Create Accounting Entries.

Page Used to Load the VAT Transaction Table

Setting Up the Run Request for the VAT Transaction Loader Process (FS_VATUPDFS)

Access the VAT Transaction Loader Rqst page (VAT and Intrastat, Value Added Tax, VAT Processes, Transaction Loader, VAT Transaction Loader Rqst)..

Use this page to establish the parameters, including run frequency and time for running the VAT Transaction Loader, to update the VAT transaction table for the applicable entities, products, and business units.

Before setting up your run requests, evaluate when you want to run the loader and for what VAT entities, products, and business units.

You can include multiple entities on a request by adding new rows and specifying the applicable product and business unit settings.

Note. Create additional run control IDs as needed for different combinations of VAT entities, VAT transaction sources, and business units.

Running the VAT Transaction Loader Process

When you run the Transaction Loader process, the steps that the process takes depends on the PeopleSoft application selected as the VAT transaction source. This table outlines the processing steps for each transaction source:

Note. In PeopleSoft Asset Management, if you retire an asset in Asset Management and pass the information on to Billing, the VAT Transaction Loader does not get the VAT information from Asset Management but from the bill created in PeopleSoft Billing. However, if the retirement transaction remains in PeopleSoft Asset Management, the VAT Transaction Loader picks up the VAT information from Asset Management.

PeopleSoft Asset Management and VAT

Although VAT is recorded when you retire an asset, PeopleSoft Asset Management does not generate a financial document such as a VAT invoice. You can send an asset retirement transaction to PeopleSoft Billing, where an invoice is automatically generated. In this case, no VAT information is loaded into the VAT Transaction Table from PeopleSoft Asset Management. The invoice transaction is picked up by the VAT Transaction Loader from PeopleSoft Billing instead.

However, you also have the option to not send the retirement transaction to Billing and to not have the invoice generated automatically, In this case, if you want to manually record the sale of a retired asset in PeopleSoft Billing and PeopleSoft Receivables, you can record the VAT applicable to that sale a second time. In this case, you must ensure that the VAT does not get reported on your VAT return twice.

To prevent VAT from being reported twice, instead of using the VAT recorded in PeopleSoft Asset Management to generate your VAT return, you can simply use that information to help you enter the invoice for the sale of the asset in PeopleSoft Billing or PeopleSoft Receivables. In this situation, you may not want to copy VAT into the VAT transaction table for PeopleSoft Asset Management. (When you run the Transaction Loader, do not select PeopleSoft Asset Management as a VAT transaction source.)

If you do not want to include PeopleSoft Asset Management VAT transactions on your VAT return, assign a specific VAT transaction type to your asset retirement transactions. Then you can either exclude that VAT transaction type on any line in the VAT report definition or include it on an additional unprinted line on the VAT report definition.

Generating VAT Reports

To generate VAT reports, use the VAT Report Definition component (VAT_RPT_ID1), the VAT Return XML Data (AUS) component (VAT_XML_NODE), and the VAT Transaction Report component (LC_RPT_SETUP_GBL).

This section provides an overview of VAT reports, lists prerequisites, lists common elements, and discusses how to:

• Review predefined VAT report definitions.

• Create or update a VAT report definition.

• Complete the VAT Transaction Report Setup.

• (AUS) Maintain XML metadata for the e-BAS report.

• Run the VAT Report Extract (VAT1001).

• Generate reports used for producing a VAT return and auditing its line items.

• Generate VAT reconciliation reports (VAT2000).

• Create VAT audit file extracts.

• (AUS) Run the electronic return for the e-BAS (VAT0650).

• (ITA) Generate Italian sales and purchases VAT registers.

Understanding VAT Reports

So that you can comply with government regulations, PeopleSoft software provides VAT reports for you to use in the preparation of your VAT returns.

PeopleSoft software delivers:

• Predefined VAT returns for Australia, Belgium, Canada, France, Germany, Italy, Luxembourg, Spain, the Netherlands, Switzerland, and the UK.

  Before generating these reports in your system, you must first modify the report definitions by specifying the information you want to print on each of the lines, based on the VAT codes and VAT transaction types you have defined in your system.

• A VAT transaction SQR (Structured Query Report) report (VAT0150.SQR).

  This report lists all VAT transactions for the selected period by customer, vendor, and other sources.

• A report for the EC Sales List.

  This report lists all sales made to customers in a foreign country within the EU.

• UK Reverse Charge Sales List.

  This report lists domestic business sales subject to domestic reverse charges, and the VAT due from the purchasers on these sales.

• VAT reconciliation reports.

• A VAT transaction BI Publisher report for details of the accumulated amount on each VAT report line.

• VAT audit file extracts and reports for tax auditing purposes.

Creating and Defining VAT Return Reports

You can use any of the predefined reports or the SQR transaction report by linking each report to your VAT entity. You can also modify or write a VAT report and generate the modified report by linking it to the VAT entity.

Creating a VAT return report is a three-step process:

1. Create a report definition that includes the VAT codes and VAT transaction types that you created, and the system-defined VAT accounting entry types.

   You must create a VAT report definition for each type of VAT report that you want to generate.

2. Run the VAT Report Extract process that applies your VAT report definitions to the VAT transaction data in the VAT reporting tables.

   This process selects transactions from the VAT transaction table and stores VAT transaction information in the VAT reporting tables. You run the Report Extract for a specific VAT entity and country, indicating the type of report you want to produce as well as various date selection criteria. Each time you run the Report Extract process, a report instance is created. The transactions in the VAT transaction table that were selected by the Report Extract process are all linked to this report instance.

3. Generate and print VAT return reports for a VAT entity.

To define VAT reports:

1. Determine what information is required on your VAT report on a line-by-line basis.

   You might start by using an empty official tax return form to determine which information to print on each line of your VAT report.

2. Specify, for each line on your report, a combination of values for the VAT codes, VAT transaction types, and VAT accounting entry types for the VAT report to print transactions.

3. Create or modify a corresponding Crystal, BI Publisher, or SQR report.

Return reports that can be produced:

• VAT returns

• Reverse charge sales list

• EC sales lists

• Other

Any given VAT transaction can be selected only once to appear on a report with a return report type of VAT return and once to appear on a return report with a report type of EC Sales List. However, prior to printing these types of return reports as final reports, you can delete the report instance, enabling you to select the VAT transactions again for that report type. You can select a VAT transaction to appear on any number of return reports with a report type of Other.

When you print a return report, you select the report instance for the report that you want to produce. You have three print options:

Understanding the VAT Transaction Report

PeopleSoft VAT functionality provides for the reporting of VAT data from ledgers and tables based on country-specific report layouts, which are referred to as VAT report definitions. These definitions are used in the preparations of the actual VAT returns. Most VAT report definitions are designed to report accumulated amounts by specific transaction types, such as sales, purchases, export, import, and domestic transactions from the VAT-related tables at various VAT rates.

The VAT Transaction report provides the details of the totals on VAT returns for use in audits and for the justification of the accumulated amounts that are reported in VAT returns. The VAT Transaction report can provide a list of all transactions accumulated for a specific line or box on a delivered VAT return if the VAT return does not have embedded logic or formulas that prevent a direct reconciliation with the related, or underlying, transactions. The VAT transaction report is built from and based on the same set of data from which the VAT return values are derived for a specific line or box on the VAT return, but instead of giving a summarized amount, it retrieves the detailed information.

Information comes from the reporting tables (VAT_RPT_INSTx), the VAT transaction table (VAT_TXN_TBL), and the VAT Cross Reference tables with source transactions (VAT_XREF_xxxx). Additionally, you can drill down to the source transaction in AP, AR, BI, GL, TR, EX, or AM. The VAT transaction report is a single generic report for all country-specific VAT returns. It uses the VAT report definition to assimilate and present the VAT return data. So any new delivered VAT returns will automatically be candidates for generation of the VAT transaction report as long as the return uses a VAT report definition.

However, some additional setup is required to allow for a relevant reconciliation between the vat return and the transaction report. The detail report depends on the VAT reporting architecture, including VAT report definitions, VAT transaction loader, VAT extract, and the VAT return run control page. The VAT Transaction Loader and VAT extract processes must be used to populate the VAT reporting tables; otherwise, the VAT transaction detail report cannot retrieve data.

If you are using an in-house, or customized, VAT reporting solution, you will not be able to use them to generate the VAT Transaction detail report.

The transaction report is based on BI Publisher technology and the output format can be either an Excel spreadsheet, html, or a pdf file.

You can use the Burst by Report Line option to produce multiple smaller output files by VAT report line item or amount rather than a large single output file, and thereby make the report more manageable. This is particularly useful if you want to produce a Microsoft Excel report, but the limit of 64,000 lines might present a problem.

Oracle provides BI Publisher functionality and delivers two XML report definition templates.

The Burst Transaction Report definition (LC_RPT_VAT_B) is provided for use by the system when you select the Burst by Report Line option and allows multiple transaction reports to be generated by individual VAT report line item.

The VAT Transaction Report definition (LC_RPT_VAT_N) is provided for use by the system when bursting is not used because the size of the report is not an issue.

Regardless of whether you use bursting, if a resulting report contains more than the maximum number of transactions specified on the run control and the output format is Excel, then the report automatically uses the default output format specified on the report definition page. However, if that default is Excel, then the system will automatically use the pdf format. When you use bursting, the limit is applied based on the number of transactions existing for a single report line. If you do not use bursting, then the limit is applied based on the number of transactions for the entire report.

You can readily change the default output format type on the report definition page; however, changing other parameters should be done advisedly because it may prevent the transaction report from being properly produced.

Some VAT returns may use complex formulas or if-then or end-if instructions to calculate amounts. Such complex algorithms are not supported by the VAT transaction report, and so this report may not be able to justify all lines for all VAT returns. In addition, if a VAT return has lines or boxes that do not have a VAT report definition line associated with them, such as lines that are just totals or have complex logic that cannot be translated into a VAT report definition line, then the lines by their very nature will not show up on the VAT transaction report.

Use the run control page (VAT_RPT_INST1) that is used to launch VAT returns to also generate the VAT Transaction report. This enables you to use the same set of data to produce the VAT Transaction report and the official VAT return at the same time.

Reporting VAT on Third-Party Vouchers

When creating a VAT report definition that includes recording VAT on third-party vouchers, confirm that the transactions are included correctly and only once.

Both the voucher lines from the original supplier invoice and the third-party voucher are loaded into the VAT transaction table. Confirm that the VAT transaction type that is specified on the third-party voucher differs from the value that the original invoice specifies. This enables you to distinguish between the two lines and to determine which one to include on any given line in the VAT return.

You can set up defaults to allow different VAT transaction types to be entered on your transactions automatically. You can do this by defining a specific set of default VAT transaction types for each third-party vendor.

Prerequisites

Before you can generate and print reports:

• If you are generating reconciliation reports and audit extracts, the following PeopleSoft applications must have generated accounting transactions: PeopleSoft Receivables, Billing, Payables, Expenses, Asset Management, Treasury, and General Ledger.

  Additionally, some products must have generated accounting entries before you run the VAT Transaction Loader. Refer to the specific PeopleSoft application PeopleBook for details on whether this is required for the particular application.

• The VAT Transaction Loader process must have loaded VAT transactions into the VAT transaction table.

Common Elements Used in This Section

Pages Used to Generate VAT Reports

Reviewing Predefined VAT Report Definitions

Although you can create your own VAT returns and reports using the VAT Report Definition component, PeopleSoft software also delivers predefined VAT returns for a number of countries. The following table lists the predefined VAT report definitions provided with PeopleSoft software:

Creating or Updating a VAT Report Definition

Access the VAT Report Definition page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Report Definition, VAT Report Definition).

Enter a description, short description, and setID.

Note. For the predelivered VAT Returns defined by PeopleSoft applications, note that the line number on the report definition corresponds to the line numbers or box numbers on the appropriate layouts. Depending on the layout for each country, those numbers are not necessarily sequential, and the numbers do not necessarily start with 1. Before you change the report definition, print a sample report to get an understanding of line numbers and box numbers, if applicable, and the information required on each line of the VAT Return.

Defining Data Selection Criteria for Each Report Line

Access the Line Criteria page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Report Definition, VAT Report Definition, Line Criteria).

For each VAT line, you define line criteria.

The key element in defining your VAT report is the selection of the combinations of VAT code, VAT accounting entry type, and VAT transaction type for which you want VAT amounts or taxable amounts included on your report.

Depending on your field selection, you can define the following fields:

You may want to start by specifying the types of VAT transactions that should be included on that line. Select the VAT accounting entry type to indicate the general types of VAT entries that should be selected, such as VAT Output (VO) or VAT Input (VI). Select the VAT transaction type to include, or effectively exclude, specific types of VAT transactions, such as domestic purchases or exports. Once you have determined the types of transactions that should be selected for a given line, select the VAT code if you require VAT information only for specific VAT rates to be reported on that line.

By combining these selection criteria, you can fine-tune the information that appears on each line. For example, you might have specified that transactions with VAT accounting entry types of VO (VAT output) and VOP (VAT output on purchases) should be selected. You might then further specify that, for those VAT accounting entry types, only transactions with VAT transaction types that indicate domestic sales and services provided by foreign vendors should be selected. On another line, you can again specify the selection of transactions with VAT accounting entry types of VOP, but this time also indicating that only transactions with VAT transaction types that indicate intra-EU acquisitions should be selected. By not specifying any VAT codes for these lines, you are enabling the selection of transactions with all VAT codes that meet the other specified selection criteria.

Warning! When reporting VAT included on third-party vouchers, ensure that these transactions are included correctly and that they are included only once.

See Understanding VAT Reports.

Completing the VAT Transaction Report Setup

Access the VAT Transaction Report Setup page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Transaction Report Setup, Vat Transaction Report Setup).

This page is populated automatically based on an existing report definition. However, you must still define the additional setup for what information is reported for each line and how it appears. VAT report definition rows cannot be added or deleted from this page. Because the data set is shared with the VAT report definition, addition or deletion of VAT report lines is done using the VAT report definition component.

See Understanding VAT Reports.

(AUS) Maintaining XML Metadata for the e-BAS Report

Access the VAT Return XML Tags page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Return XML Tags, VAT Return XML Tags).

Enter an effective date and status.

Maintaining XML Metadata

Viewing or Updating Metadata Details

Access the XML Node Detail page (Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Return XML Tags, VAT Return XML Tags; click the Detail button on the VAT Return XML Tags page).

XML Source	Select the appropriate XML source from the following options: None: No value specified. Array: Cells G1 to G20 of the BAS (Business Activity Statement). Constant: Constant value specified. Field Val (field value): Permits specification of a field from the VAT_RPT_INST1 table. Runtime: Value defined on the Electronic Return run request page on which you define parameters for generating the e-BAS flat file. This page is described later in this section.
XML Detail	Enter a description for the XML source you are defining. For example, if you select Array as the XML source, use the XML detail to describe the placement of the source in the cells.
XML Attribute and XML Detail	Enter the XML attribute according to the XML source you select. For example, if you select Field Val as the XML source, enter the XML ID that describes the type of cell. Enter the XML detail according to the XML source you select. Again, for example, if you select Field Val as the XML source, enter the field number of the report.

Running the VAT Report Extract (VAT1001)

Access the VAT Report Extract page (VAT and Intrastat, Value Added Tax, VAT Processes, Report Extract, VAT Report Extract).

Set up your run requests for extracting data in preparation for printing your VAT report.

Enter a description and short description.

You are now ready to generate the extract process.

Each time you generate the VAT report extract process, the system creates a report instance. The transactions in the VAT transaction table are linked to this report instance. You select the report instance that you want to use when you are preparing to generate your VAT report on the VAT Reports page.

Generating Reports Used for Producing a VAT Return and Auditing Its Line Items

Access the VAT Reports page (VAT and Intrastat, Value Added Tax, VAT Reports, Return and Other Reports, VAT Reports).

Print As	Select from the following values: Draft: You can reprint the report as many times as necessary. Final: Print a final report. Reprint: If you have printed a report as final, you can reprint the report as many times as needed.
VAT Entity and Country	Specify a VAT entity and country for the report. The system retrieves only those report instances generated for this entity and country combination.
Refresh	Click to retrieve the report instances created by the VAT Report Extract process for the specified entity and country combination. The report instances appear in the VAT Reporting Results group box.
VAT Reporting Results	Displays the report ID, a description of the report, the report date, the report type, and the instance for each report extract that has been generated for this VAT entity and country combination.
Select	Click this check box for the report instance for which you want to print the VAT report.
Details	Click to access the Detail page to view details for a report instance.

Note. For VAT returns and EC sales lists, any given VAT transaction can be selected only once for a report. However, before you print these types of reports as final reports, you can delete the report instance, enabling you to select the VAT transactions again for that report type. For other types of reports, this restriction does not apply.

Transaction Report Options

After completing the VAT Transaction Report Setup page, you can specify additional options for producing the VAT Transaction Report that shows line item details for the VAT return. You can generate the transaction report at the same time or before or after you generate the VAT report using the same run control page (VAT_RPT_INST1) that you use to generate the VAT report.

As with the VAT return, a report ID and process instance must be selected in the VAT Reporting Results grid to launch the VAT transaction report.

Note. The same set of data can be selected to provide both the transaction report and the VAT return report in the same run; however, the VAT transaction report options apply only to the VAT transaction report. While the VAT transaction report may or may not be generated at the same time as the VAT report, the transaction report must be generated after the VAT extract.

Viewing Report Instance Details

Access the VAT Reports - Detail page (VAT and Intrastat, Value Added Tax, VAT Reports, Return and Other Reports, VAT Reports; click the Details link on the VAT Reports page).

Report ID and Description	ID and a description of the report definition used for the report extract.
Report Date and Report Type	Date of the report extract and type of report extract run.
Process Instance	Process instance for the report extract assigned by the system. The VAT transactions are linked to this process instance.
Run Date and Time	Date and time on which the report extract was generated.
Report Transactions From and Report Thru Date (report through date)	Date range of the transactions selected for the report extract.
Country	Country for which the report extract was generated.
VAT Registration ID	Associated VAT registration ID for the country that will print on the report.
VAT Reporting History	Lists the printing history.
Transactions Not Selected	Lists the transactions that are not included in the report and why. Use this section to associate transactions not selected with the report instances to prevent those transactions from being treated as exceptions for future reports. The transactions may include transactions that exist in the VAT transaction table for the date range entered on the extract page but that do not meet the criteria specified by the VAT report definition. The transactions are not necessarily in error. For example, transactions indicated as outside of the scope of VAT may exist in the VAT transaction table, but printing them on a VAT return may not be required. Note. You can prevent transactions that are not required on a VAT return from being specified as exceptions in the first place by creating an additional line on your VAT report definition to pick up these additional transactions. In this way, the transactions do not show up as exceptions, but they also do not appear on the report. Within the Report Exceptions group box is the Select All button, which enables you to select the Associate with VAT Report check box on all the lines within the Transactions Not Selected group box. You can select the Associate with VAT Report check box to link the transaction to the report instance, and prevent the transaction from being selected during future runs on the VAT Report Extract. This prevents the transaction from appearing on future reports as an exception.
No Exchange Rates Available	Lists the missing exchange rates needed to calculate the VAT amounts that appear.

Note. The Transactions Not Selected and No Exchange Rates Available fields appear only if exceptions exist.

If a transaction has not been selected in error or if no exchange rate exists, you must correct the problem that caused the error, delete the report instance, and rerun the VAT report extract. This action enables all the previously selected transactions plus the transactions flagged as exceptions to be selected for the report.

Once you have reviewed the instance details and are satisfied that you have selected the correct instance, you are now ready to generate the VAT report.

Generating VAT Reconciliation Reports (VAT2000)

Access the VAT Reconciliation Rpt page (VAT and Intrastat, Value Added Tax, VAT Reports, Reconciliation Reports, VAT Reconciliation Rpt).

VAT Report Type	Select from the following values: Account Balance Reconciliation: For a specified range of VAT-applicable accounts and dates, allows comparison of the amount of expected VAT to the amount of VAT that was actually posted for VAT transactions that have been recorded in PeopleSoft Payables, Receivables, Billing, Asset Management, Expenses, Treasury, and General Ledger. This report also allows the total amount of posted VAT reported for each VAT account to be compared to the GL balance for that VAT account. Account/VAT Account Recon (Account/VAT Account Reconciliation): For a specified range of accounts and dates, lists the taxable basis amounts as well as corresponding VAT amounts calculated from VAT transactions that have been posted by PeopleSoft Payables, Receivables, Billing, Asset Management, Expenses, Treasury, and General Ledger. Taxable Basis Reconciliation: Verifies that the VAT Basis amounts stored on the VAT Transaction table, multiplied by the appropriate VAT percentage, is equal to the actual VAT amount also stored on the same table. VAT Transaction Reconciliation: Provides an overview of VAT transactions generated by PeopleSoft Payables, Receivables, Billing, Asset Management, Expenses, Treasury, and General Ledger applications and verifies that those transactions have been reported on a VAT Return report. Zero VAT Justification: Illustrates why no VAT was collected or paid.
Report Detail	If you are generating the Taxable Basis Reconciliation, the VAT Transaction Reconciliation report, or the Account Balance Reconciliation report, select whether you want to view the report as Summary or Detail. If you select Detail, the report prints one line for each VAT transaction. If you select Summary, VAT information is printed on an aggregated level. Note. The Zero VAT Justification and Account/VAT Account Recon reports are always detail reports.
Print Exceptions Only	For the Taxable Basis Reconciliation report, the VAT Transaction Reconciliation report, or the Account Balance Reconciliation report, select to display discrepancies. This table lists the content for each of these reports if printed as an exception:

You are now ready to generate the VAT reconciliation report.

See Also

PeopleSoft Financials Global Reports

Creating VAT Audit File Extracts

Access the VAT Audit File Extracts page (VAT and Intrastat, Value Added Tax, VAT Reports, Audit File Extracts, VAT Audit File Extracts).

Select the VAT extract type from the following types:

You are now ready to generate the VAT audit report.

See Also

PeopleSoft Financials Global Reports

(AUS) Running Electronic Return for the e-BAS (VAT0650)

Access the Electronic Return page (VAT and Intrastat, Value Added Tax, VAT Reports, Electronic Return).

Note. The VAT report for the BAS (Business Activity Statement) must be printed as final before the data can be extracted into the flat file for submission to the ATO (Australian Tax Office).

You are now ready to generate the electronic return.

See Also

PeopleSoft Financials Global Reports

(ITA) Generating Italian Sales and Purchases VAT Registers

Access the VAT Register ITA page (VAT and Intrastat, Value Added Tax, VAT Reports, VAT Register ITA).

VAT Reporting Entity and VAT Reporting Country	Select the VAT entity and country combination for which you want to generate the report.
VAT Register Type	Select either VAT Purchases Register or VAT Sales Register.
Journal Code	Select the journal code.
Document Type	Use to select the document type to use for the selected journal code. This field is optional.
Exchange Rate Type	Select the type of exchange rate that you want the system to use to convert VAT amounts into the reporting currency.
From Document Date and To Document Date	Use to specify the date range for the documents to be included.
Detail or Summary	Select whether to run a Detail or Summary report.

You are now ready to generate the report.

See Also

PeopleSoft Financials Global Reports