1. Using Financials for EMEA
  2. VAT Reporting for Russia

VAT Reporting for Russia

This topic explains the implementation and usage guidelines for the VAT Reporting for Russia that includes the following components:

  • Sales Ledger
  • Purchase Ledger
  • Sales Ledger - List of Adjustments
  • Purchase Ledger - List of Adjustments
  • VAT Invoice Register

TheVAT Reporting for Russia feature allows you to report on issued and received transactions. The reporting is based on the Tax Allocation Process and uses tax boxes assigned to the transaction lines to include them in the appropriate report. The feature generates XML files containing data that helps meet Russian VAT reporting requirements.

Data provided in the XML files should be processed and formatted into the legal format required by the tax authority in Russia.

The section explains the prerequisite setup, important transaction entry aspects, report output details, and the business flow.

VAT Reporting for Russia Process Flow

  • Transactions can be created manually, imported from spreadsheets, or imported from other sources. Regardless of creation method, all transactions must have additional Russia specific information entered in the following tax determinants:  Document Fiscal Classification
    • Transaction Business Category
    • User Defined Fiscal Classification
    • Product-Based Fiscal Classification
    • Regional Information fields that are available in the Additional Information region of the purchase and sales transaction entry pages.
  • If transactions are missing Russia specific information, such as Revised Transaction or Revision Number or any of the tax determinants listed above, they should be updated with the relevant details.
  • Transactions should be validated or completed, and accounted. Only accounted transactions can be reported.
  • There may be specific cases where Tax Point Date needs to be overridden. For this purpose, you run Process Tax Point Date Adjustment process that updates Tax Point Date of the selected transactions.
  • Next step is to run Select Transactions for Tax Reporting process for the desired reporting period.
  • Tax allocation process allocates tax boxes to the transactions. Tax boxes are used to determine the report on which transactions should be reported.
  • Review Tax Box Exceptions Report to check if there are any transactions that have not been allocated required tax boxes.
  • Review Tax Allocation Listing to verify tax boxes allocated to the transactions.
  • Run VAT Reporting for Russia process that generates XML files for the selected reports. You can run this process for all reports or a single report.
  • Review XML files and prepare transactions to be reported in a legally required format.

Assumptions and Prerequisites

The information provided in this document assumes that the following entities have already been set up:

  • Data Security
  • Geographies
  • Enterprise Structure
  • Tax Regime to Rate setup
  • Tax Party Profiles
  • Tax Rules
  • Suppliers
  • Customers
  • Procurement Business Function
  • Common Options for Payables and Receivables

It is recommended that you complete the Implementation Project for your organization before you enter transactions and use the transaction tax reports.

Common Setup

Define the Tax Reporting Configuration to start using the Select Transactions for Tax Reporting, Tax Box Allocation, and VAT Reporting for Russia processes and reports.

The Tax Reporting Configuration determines a reporting configuration based on the Tax Registration Number (TRN) defined for Legal Reporting Unit tax registration. It is a basis for country-specific tax reporting. This configuration is referred to as the Tax Reporting Entity. Each Tax Reporting Entity is uniquely identified by an entity identifier that is a combination of the Legal Entity, Tax Registration Number, and Tax Regime.

Tax Box Allocation process and reports are based on the Select Transactions for Tax Reporting process which is a tool to prepare taxable records for further tax reporting. The Select Transactions for Tax Reporting is run for a given Tax Reporting Entity, tax period, and source. Each run of this process is assigned a system-generated reporting identifier. This reporting identifier drives all the underlying processes, such as Tax Allocation Process and VAT Reporting for Russia.

Set up the following:
  • Tax Regime
  • Legal Reporting Unit Tax Registration
  • Tax Reporting Configuration
  • Document Fiscal Classification for Russia VAT Transaction Types
  • Transaction Business Category for Russia VAT Business Types
  • User-Defined Fiscal Classifications for Russia VAT Operation Types
  • Product-Based Fiscal Classification for Tax Agent Invoice Reporting on Purchase and Sales Ledger