Understanding Summary VAT
In Italy, the government requires businesses to report VAT on accounts receivable and accounts payable transactions. You can meet this reporting requirement by assigning a register type and class to each transaction.
Assigning register types and classes lets you group VAT information on the summary VAT report. The summary VAT report groups information based on register class, then register type, and then tax rate. For example, the information that is grouped under the registration class for sales might include register types for sales that are VAT-taxable and sales that are VAT-exempt. Information within those register types is summarized by tax rate.
To report summary VAT, you must complete these steps:
Set up the VAT Register Class (74/01) and VAT Resister Type (74/02) user-defined codes (UDCs).
Use the Register Type & Class Setup program (P74091) to link document types, tax rates, and registers.
Use the VAT Balances Revisions program (R74092) to establish an initial VAT balance.
Run the Print VAT Summary Reports (R74093) program to print the report.
When you post invoices and vouchers, VAT information is written to the F0018. You can then run the summary VAT report, which retrieves information from table F0018.