4Online VAT Reporting for Spain

This chapter contains the following:

Overview

Online VAT Reporting for Spain

Companies in Spain with an annual turnover of above 6 million Euros, can use the following feature to report VAT information to the Spanish tax authorities:

  • Online VAT Reporting for Spain: electronically delivers VAT registers to the Spanish tax authorities.

  • Online VAT Register Reporting Confirmation for Spain: reflects the acceptance status on the financial documents that are reported to the tax authorities.

You can also correct and resubmit the financial documents.

The following figure demonstrates the Online VAT Reporting process flow:

The image describes the process flow of the Online
VAT Reporting process.

Online VAT Reporting for Spain lets you perform the following tasks:

  • Specify mandatory reporting information that are specific to VAT reporting for Spain with additional regional fields.

  • Create an XML file in a predefined format for reporting transactions.

  • Update the transaction reporting status based on the confirmation message received from the Spanish tax authorities.

The following table explicates the various processes associated with the Online VAT Reporting for Spain feature:

Process Description

Online VAT Register Reporting for Spain

Creates XML files for the following registers:

  • Issued invoices

  • Received invoices

  • Selected Intra-EU transactions

  • Payments

  • Receipt collections

Online VAT Register Reporting Confirmation for Spain

Updates transactions with the response message details

Annual Online VAT Reporting for Spain

Creates XML files for the Cash Collection register.

Annual Online VAT Response for Spain

Updates customer accounts and sites that were reported to the tax authority with the corresponding confirmation information.

Annual Online VAT Investment Goods Register Reporting for Spain

Creates XML files for the Investment Goods register.

Tax Setup for Spain

How You Assign a Transaction Type for Online VAT Reporting

Assign a transaction type to your transactions that are used for online VAT reporting in Spain using the document fiscal classification. The document fiscal classification is used to capture the mandatory tag Document Type. You can select a value from a set of new document fiscal classification values during transaction entry at the header level for both Payables and Receivables. You can also use this value in your import spreadsheets for both Payables and Receivables if you create your transactions through import.

The following table lists the values of document fiscal classification:

Code Meaning

ORA_F1

Invoice

ORA_F2

Simplified invoice or ticket

ORA_R1

Rectification invoice- art.80 three LIVA- tender

ORA_R2

Rectification invoice- art.80 three LIVA- bad debts

ORA_R3

Rectification invoice- rest art. 80 one and two

ORA_F3

Invoice issued instead of invoiced and declared simplified invoices

ORA_F4

Summary journal of invoices

ORA_F5

Imports

ORA_F6

Other accounting transactions

Note: The first two characters of the meaning are used in the corresponding block of the XML message. If you don't enter a value, the record is rejected.

Associate Tax Reporting Codes to Tax Rates

Tax reporting types and codes are a part of setting up the Online VAT Reporting for Spain feature.

Note: The values are predefined in the application after you complete the setup. You can then associate the codes to your tax rates to perform online VAT reporting.

Tax Reporting Type

The tax reporting type ORA_JE_SII_TAX_GROUP is predefined in the application.

Tax Reporting Codes

The following table lists the tax reporting codes that are predefined in the application:

Tax Reporting Code Description

ORA_NS

Not Subject

ORA_S1

Subject Not Exempt

ORA_S2

Subject Not Exempt Reverse Charge

ORA_SE

Subject Exempt

Associating Tax Reporting Codes with Tax Rates

To associate tax reporting codes with tax rates, do the following:

  1. Navigate to the Setup and Maintenance work area.

  2. Search for the Manage Tax Rates and Tax Recovery Rates task.

  3. On the Manage Tax Rates and Tax Recovery Rates page, search for the tax rate.

  4. On the Tax Reporting Code tab, select the tax reporting code.

  5. Select ORA_JEES_SII_TAX_GROUP_TYPE as the Tax Reporting Type.

  6. Click Submit.

Define Tax Exemptions

Online VAT Reporting has specific requirements for reporting tax exemptions, which are applied to your supplier and customer invoices.

Prerequisites

The following table describes the navigation of the setup items associated with tax exemptions: Ensure that the Allow tax exemptions option is selected for the following setup items before you define tax exemptions.

Setup Item Navigation Allow Tax Exemptions

Tax regimes

Navigator> Setup and Maintenance> Manage Tax Regimes

Yes

Taxes

Navigator> Setup and Maintenance> Manage Taxes

Yes

Tax rates

Navigator> Setup and Maintenance> Manage Tax Rates and Tax Recovery Rates

Yes

Tax statuses

Navigator> Setup and Maintenance> Manage Tax Statuses

Yes

Define Tax Exemptions

You can define tax exemptions either at the third party or the third-party site level. To define tax exemptions, do the following:

  1. Provide a Party Name for your third party. The third party can either be a supplier or a customer.

  2. In the Exemption Information section, enter the Tax Regime Code, Configuration Owner, and Start Date.

  3. In the Exemption Type and Percentage section, enter the Exemption Percentage.

    Tip: Enter 100 as the Exemption Percentage if the transactions are fully exempt from taxes.
  4. Provide additional information as applicable for the third party.

Set Up Receivables for Write-off and Cash Collections

This example demonstrates how to define an activity with the adjustment type that is to be reserved for collection write-offs.

Perform the following steps to define the activity:

  1. On the Setup and Maintenance work area, search for the Manage Receivables Activities task.

  2. Click Create.

  3. On the Manage Receivables Activities page, complete the fields as shown in the following table:

    Field Value

    Business Unit

    Vision Spain

    Name

    Write off for ES Online VAT

    Activity Type

    Adjustments

    GL Account Source

    Activity GL account

    Activity GL Account

    Enter the account you want to use

    Tax Rate Code Source

    None

    You must define the receipt method for cash collections before you report the annual cash collections.

Set Up Receipt Method for Cash Collections

Perform the following steps to set up the receipt method for cash collections:

  1. On the Setup and Maintenance work area, search for the Manage Receipt Classes and Methods task.

  2. Click Edit.

  3. Enter values in the fields as shown in the following table:

    Field Value

    Regional Information

    Online VAT Reporting for Spain

    Cash Collections

    Yes

    All receipts that you enter through this method are now selected for cash collections reporting.

Define Deferred Tax Rules and Rates

The Online VAT reporting feature to report transactions requires payments for transactions with deferred tax rates. Define your tax rules and rates for deferred tax to ensure that you meet the tax requirements.

Prerequisites

To define ES VAT STANDARD DEF RATE in the application:

  1. Navigate to the Manage Tax Rules page.

  2. Enter the values as displayed in the following table:

    Field Value

    Determine Tax Rate Rules

    ES VAT STANDARD DEF TAX RATE

    Rule Code

    ES VAT STANDARD DEF RATE

  3. In the Tax Condition Set tab, enter Tax Conditions ES STD DEF RATE for ES VAT STANDARD DEF TAX RATE.

To set up ES VAT STANDARD DEF RATE:

  1. From the Setup and Maintenance work area, search for the Manage Tax Rates and Tax Recovery Rates page.

  2. Click the Tax Condition Set tab, and enter data in the following fields:

    • Tax Determining Factor Class

    • Tax Determining Factor Name

    • Operator

    • Value for From Range

  3. Click Submit.

Define Period Tag

The Period tag is a mandatory field in the Online VAT Reporting Received Invoices template.

Use either the Payables Invoice Date or the Payables Invoice Accounting Date to determine the period value for an invoice.

Enable Period tag

To enable the Period tag, perform the following steps:

  1. On the Setup and Maintenance work area, search for the Manage Standard Lookups task.

  2. In the Lookup Type field, search for ORA_JEES_SII_AP_PERIOD_OPTION.

    Note: The Payables Invoice Date is enabled by default. You must enable only one value at a time.

Transaction Numbering Setup

Set Up Transaction Numbering

Transaction numbering consists of the following setups:

  • Document sequence setup

  • Delimiter setup

Set Up Document Sequence

Create all transactions with a sequence name and number to comply with the country tax reporting requirements. Use the standard document sequencing feature to meet this requirement. To implement the standard document sequencing feature for all or part of the issued invoices, you must complete the document sequence setup for Receivables.

Tip: Select the Copy document number to transaction number option for the transaction source to use the document sequence name and number for your transaction numbering through standard functionality in any of your batch sources. If you want to report transactions numbers that are created by the third-party transaction source, don't select the Copy document number to transaction number option for the transaction source.

To define the document sequence for Receivables, do the following steps:

  1. On the Setup and Maintenance work area, search for the Manage Transaction Sources task.

  2. Click Edit. The Edit Transaction Source page opens.

  3. In the Source Defaults section, select the Copy document number to transaction number option, and click Save.

You can also define document sequences for your Payables invoices on the Manage Document Sequences page. However, you can't submit these values to the tax authorities.

Note: Transaction numbers are defined as a document sequence name, followed by a delimiter and the document sequence number. You can define the character for the delimiter by using the ORA_JEES_SII_DELIMITERS lookup type.

Set Up Delimiter

To create transaction numbers using the document sequence name and number, do the following:

  1. From the Setup and Maintenance work area, navigate to the Manage Standard Lookups page.

  2. In the Lookup Type field, search for ORA_JEES_SII_DELIMITERS.

Ensure that you have enabled only one of the following delimiter values:

  • ORA_ASTERISK

  • ORA_COLON

  • ORA_COMMA

  • ORA_FORWARD_SLASH

  • ORA_HYPHEN

  • ORA_PERIOD

  • ORA_PIPE

  • ORA_SEMICOLON

  • ORA_SPACE

  • ORA_UNDERSCORE

Note: The delimiter setup doesn't impact the format of the transaction numbers created by the third party system for the imported invoices.

Suppliers and Customers

Define Taxpayer Identifiers and Tax Registration Numbers for Suppliers and Customers

You can enter taxpayer ID and tax registration number for your suppliers and customers.

Suppliers

Perform the following tasks to enter taxpayer ID and tax registration numbers for your suppliers:

  1. Navigate to the Manage Suppliers page.

  2. Click Create.

  3. On the Create Supplier page, enter values for the fields that are listed in the following table:

    Field Value

    Supplier

    Enter the name of the supplier

    Business Relationship

    Spend Authorized

    Tax Organization Type

    Corporation

    Tax Country

    Spain

    Tax Registration Number

    Enter a tax registration number that you want to apply to the supplier.

    Taxpayer ID

    Enter a taxpayer ID that you want to apply to the supplier.

You can only enter the Taxpayer ID for the party level, and use it for registration numbers, such as taxpayer ID, passport number, and country official document number. You can enter the Tax Registration Number at party and party site tax profile or tax registration levels. For Tax Registration Number retrieval Party site level takes precedence over party level whereas tax registration level has precedence over tax profile level. You can enter the tax registration number at the tax registration level only if the supplier is a company in Spain. If the supplier is not a company in Spain, you must enter the tax registration number at the tax profile level.

If the supplier is registered in a country that is outside the European Union, select Online VAT Reporting for Spain as the Regional Information, and Passport number as the Code on the supplier site page. You can enter the Taxpayer ID type at either the site or the party level. If the taxpayer ID type is entered at both levels, the site level takes precedence.

Customers

Perform the following tasks to enter taxpayer ID and tax registration numbers for your customers:

  1. Navigate to the Manage Customers page.

  2. Click Edit.

  3. On the Edit Customer page, enter the Taxpayer Identification Number. You can enter the tax profile and tax registration for the customer party or party sites or both.

For Intra-EU customers, enter the tax registration number at the party tax profile for the customer party or account site. If the customer is registered in a country that is outside the European Union, select Online VAT Reporting for Spain as the Regional Information, and Passport number as the Code on the customer site page. You can enter the Taxpayer ID type at either the site or the party level. If the taxpayer ID type is entered at both levels, the site level takes precedence.

Associate Additional Special Regimes to Invoices

You can associate multiple added special regimes to your invoices.

To associate 01 as the primary special regime and 02 as the added special regime:

  1. On the Setup and Maintenance work area, search for the Manage Standard Lookups task.

  2. In the Lookup Type field, search for ORA_JEES_ISS_SPECIAL_REGIME or ORA_JEES_REC_SPECIAL_REGIME.

  3. Use this format:

    Lookup Code Format Example

    Primary Special Regime, Additional Special Regime 1, Additional Special Regime 2

    01,02,03

Note: If you create your transactions using import, you can also enter these values in your import spreadsheets for both Payables and Receivables.

Accounts Payable

Online VAT Reporting for Supplier Invoices

Supplier invoices consist of mandatory and optional information. Enter the following mandatory information for each supplier invoice:

  • Document Fiscal Classification: Enter a unique value in the Invoice Header section.

  • Description: Enter a description for the supplier invoice.

  • Regional Information: Enter Online VAT Reporting for Spain. The transaction can be reported through the Online VAT Reporting for Spain process when you associate this context to the transaction.

  • Transaction Status: Select Ready. A null value is also considered as ready for submission for a new transaction.

  • Special Regime: Select one of the predefined values, or enter a new value.

You can also enter the following optional information for the global descriptive flexfields:

  • Third Party Invoice: Enter Yes or No. The default value is No.

  • Intra-EU Declared Key: Enter R or D depending on the application. R stands for Sender, and D stands for Declarer.

  • Intra-EU Subtype: Enter A or B to classify the transaction for the Special Intra-EU Transactions register. The default value is Null. If you enter values in both the Intra-EU Declared Key and Intra-EU Subtype fields, the transaction is selected for Special Intra-EU Transactions register.

  • Invoice Recording Date: Enter a date in this field to override the invoice accounting date value printed in the XML message. If the field is left blank, the invoice accounting date is printed for your Payables invoices.

  • Document Type Override: Select the appropriate value in this field to change the invoice type of your invoice. The Document Type Override field lists the same values that are listed in document fiscal classification. The XML message prints the value entered in this field for the corresponding invoice.

  • Last Document Number of Summary Invoice: Enter a value if the document type ID is F4. Enter the first invoice number of the summary invoice in the Invoice Number field and the last invoice number in this field.

  • Date Transaction Performed: Enter a value if you want to use a different date.

  • Reporting Period: Enter a period to change the period calculated from the invoice date or accounting date based on the value you have assigned through the lookup. You can enter any calendar periods from this list: 01, 02, 03, 04, 05, 06, 07, 08, 09, 10, 11, and 12.

Note: Don't change the value in the Regional Information field after it's set to Online VAT Reporting for Spain. If you change the context value, you can't report this transaction through the online register process.

After you have entered the value, validate and account the supplier invoice.

Create Rectification Invoices

You can submit the rectification invoices for invoices that you have already submitted to the tax authority. You can create and submit a rectification invoice using either of these methods:

  • Substitution

  • Rectification

Creating a Rectification Invoice by Substitution

You can create an invoice that substitutes the original invoice. To create an invoice by substitution:

  1. Navigate to Invoices from Payables, and create an invoice. You must report the original invoice details for the substitute invoice.

  2. In the Regional Information field, enter Original Invoice Number.

  3. Select S as the Rectification Type.

  4. Cancel the original invoice or reverse all invoices lines of the original invoice.

Creating a Rectification Invoice by Rectification

To create an invoice by rectification:

  1. Create a credit memo transaction and associate one of the rectification types, such as R1.

  2. Enter I as the Rectification Type. I stands for difference.

Accounts Receivable

Online VAT Reporting for Transactions

Transactions selected for reporting VAT consist of mandatory and optional setups. Enter the following information for each transaction:

  • Document Fiscal Classification: Enter a unique name in the Transaction Header section.

  • Description: Enter a description for the transaction.

  • Regional Information: Select Online VAT Reporting for Spain. You can now report this transaction through online VAT submission.

  • Transaction Status: Select Ready. A null value is also considered as ready for submission for a new transaction.

  • Special Regime: Select one of the predefined values, or enter a new value.

You can also enter the following optional information for the global descriptive flexfields:

  • Third Party Invoice: Enter Yes or No. No is the default value.

  • Intra-EU Declared Key: Enter R or D depending on the application. R stands for Sender, and D stands for Declarer.

  • Intra-EU Subtype: Enter A or B to classify the transaction for the Special Intra-EU Transactions register. The default value is Null. If you enter values in both the Intra-EU Declared Key and Intra-EU Subtype fields, the transaction is selected for Special Intra-EU Transactions register.

  • Document Type Override: Select the appropriate value in this field to change the invoice type of your invoice. The Document Type Override field lists the same values that are listed in document fiscal classification. The XML message prints the value entered in this field for the corresponding invoice

  • Last Document Number of Summary Invoice: Enter a value if the document type ID is F4. Enter the first invoice number of the summary invoice in the Invoice Number field and the last invoice number in this field.

  • Property Location: Select the location from the list of values if the transaction is for rental property.

  • Date Transaction Performed: Enter a value if you want to use a different date.

  • Reporting Period: Enter a period to change the period calculated from the invoice date or accounting date based on the value you have assigned through the lookup. You can enter any calendar periods from this list: 01, 02, 03, 04, 05, 06, 07, 08, 09, 10, 11, and 12.

Note: Do not change the value in the Regional Information field once it is set to Online VAT Reporting for Spain. If you change the context value you cannot report this transaction through the online register process.

After you have entered the value, validate and account the transactions.

How can I write off remaining balances for Receivables?

After creating a Receivables activity for write-offs, you can write off any remaining balance through a specific type 03 adjustment. Use the type 03 adjustment for uncollected or unpaid limit tax date or mandatory tax date due to bankruptcy. You must update the Adjustment Record to Submitted to avoid multiple submissions of the same adjustment.

How You Create Rectification Transactions

You can submit the rectification transactions for invoices that you have already submitted to the tax authority. You can create and submit a rectification transaction using either of the following methods:

  • Substitution

  • Rectification

Creating a Rectification Transaction by Substitution

You can create a transaction that substitutes the original transaction. To create an invoice by substitution, perform the following steps:

  • Navigate to Billing from Receivables, and create a rectification transaction. Mark the transaction as R1 to R5 according to the document fiscal classification.

  • Enter Original Invoice Number in the Regional Information field.

  • Select S as the Rectification Type.

  • Credit the original transaction.

  • Select On Hold for the Credit Memo to avoid reporting a duplicate rectification.

Creating a Rectification Transaction by Rectification

Create a credit memo to create a transaction by rectification. You can use any of the following methods to create n transaction by rectification:

  • Create a credit memo, and apply it to the transaction you want to rectify. Assign one of the rectification codes from R1 to R5 to the credit memo transaction. Your credit memo is submitted with the rectification type codes.

  • Select the original transaction, and click the Credit Transaction option. The details of the matched transaction including the transaction type from Document Fiscal Classification is inherited. You cannot update the transaction. Your credit memo is submitted with the transaction type of the original transaction. The default value of the Rectification Type is I but you can change the value in the Document Type Override Regional Context field.