Tax Rate Areas
You must set up this supplemental information for tax rate areas for Italy:
Set up associations between tax rate areas and the transaction type of your sales transactions so that the system can determine how to classify the sales records.
You use the Tax Rate Area and Transaction Type Mapping program (P740018A) to associate tax rate areas to transaction type codes. The system uses the associations that you set up for the intrastat reports and the Black List Declaration.
Associate the tax rate areas that you use for purchase and sales transactions with the countries in which you use the tax rate areas.
You use the Black List Setup program (P74Y010) to associate the country code with the tax rate area. The system uses the associations when processing the Black List Declaration.
See Associating Countries with Tax Rate Areas for VAT Reports
Alternatively, you can enter the country code only, without associating a tax rate area with the country code. When you enter the country code only, the system includes all transactions in the country without regard to the tax rate area used in the purchase or sales transaction.
Classify the tax rate areas that you use for purchase and sales transactions that show on the Multi Purpose VAT Communication for the Yearly List (Spesometro).
You use the Multi Purpose VAT Classification by Tax Area/Item (P74Y011) program to determine how to include transactions in the text files generated when you run the Multi Purpose VAT Communication program. This classification can be by item.
When you enter the tax area only, the system includes all transactions for that tax area without regard to the item numbers used in the purchase or sales transaction.
See Classifying Transactions by Tax Area and Items for VAT Reports
Complete the fields in the Tax Rate Additional Information form to classify the records that you use for transactions not subject to taxation. You access this form from the Tax Rate/Areas form.
The system uses this information for different purposes.