Suspended VAT Process

Use JD Edwards EnterpriseOne localized software to:

• Identify which transactions are subject to suspended VAT.

• Calculate and print VAT payable at the time of invoicing.

• Hold the VAT payable in a suspense account until payment is received.

• Generate the appropriate accounting transactions when payment is received.

• Report on both VAT payable and suspended VAT.

To process suspended VAT for Italy:

1. Set up UDCs, AAIs, and tax rate areas for suspended VAT

2. Enter invoices that are subject to suspended VAT with a special tax rate area (for example, SOSP20) and a special document type (for example, Q9) for suspended VAT.

3. Post the invoices.

   Set the processing options in the post program to post VAT. The tax amount is posted to a special suspended VAT account. Verify that the VAT amount is posted to the object account designated in AAI RTSOSP.

4. Enter receipts, selecting the invoices that are subject to suspended VAT and have received payment.

5. Post the receipts.

6. Run the Suspended VAT Generation (R74076C) program to create journal entries to reclassify the suspended VAT amount as a recognized VAT in a VAT payable account.

   This program identifies paid Q9 (suspended VAT) documents, creates records in the Taxes table for the Q9 documents, and creates accounting transactions for taxes payable on the Q9 documents.