Understanding VAT-Only Vouchers for the Customs Authority

In Italy, goods imported from outside the EU are subject to VAT. The Italian Customs Authority assesses VAT on goods imported from outside the EU at the relevant Italian domestic rate. To pay the required VAT, set up the Customs Authority as an address book record with a person/corporation code of 5 (customs authority). You can pay this type of VAT by creating VAT-only vouchers for the Customs Authority.

Normally in Italy, different document types are used for VAT-only vouchers and standard vouchers. The same next numbers are used for both types of vouchers, and both are printed sequentially on the Monthly VAT Report (R004051). Alternatively, you can print VAT-only vouchers separately on the Monthly VAT Report and with a separate numbering scheme. To do this procedure, set up next numbers by document type and print the Monthly VAT Report by document type.

See Using Additional Reports for Italy.

Set up a special version of the AP Standard Voucher Entry program (P0411) to process VAT-only vouchers. Use the processing options for the program to use a specific document type for VAT-only vouchers.

Use the Voucher Entry program (P74Y4411) to establish the link between VAT only vouchers for the customs authority and the original voucher. The original vouchers linked to the VAT only vouchers must have same supplier. Use Activate Supplier validation processing option from the Localization Voucher Entry program (P74Y4411) to validate it.

See Associating Vouchers to Debit Notes for more information.

Note: You do not have to set up a special version of the Voucher Entry program if you want to use the same next number (Same As) for VAT-only vouchers and standard vouchers.

When you enter VAT-only vouchers for AP, use the tax explanation code of VT. You can enter the tax amount with the gross amount that is equal to the tax amount for vouchers with a tax explanation code of VT.

You enter two types of VAT-only vouchers:

• Vouchers with VAT payment by Carrier/Customs Agency.

• Vouchers with VAT payment directly to the Customs Authority.

For VAT-only vouchers with VAT payment by carrier or customs agency, the entries are posted as:

Voucher	Description of Accounting
VAT-only vouchers	DR - VAT Recoverable account. CR - Payable to VAT-only vouchers account.
Customs agency voucher	DR - VAT Transit account. DR - VAT Recoverable account. CR - Debt to Customs Agency account. DR - Customs Expenses account.
Close the VAT-only voucher	DR - Payable to VAT-only voucher account. CR - VAT Transit account. Note: You create the entries to close the VAT-only voucher through the manual or automatic payment process. To do this procedure, replace the bank account with the VAT Transit account that was previously debited when the Customs Agency voucher was posted.

For VAT-only vouchers with VAT payment directly to the Customs Authority, the entries are posted as:

Voucher	Description of Accounting
VAT-only vouchers	DR - VAT Recoverable account. CR - Payable to VAT-only voucher account.
Payment to the Customs Authority	DR - Payable to VAT-only voucher account. CR - Bank account.
Close the VAT-only voucher	DR - Payable to VAT-only voucher account. CR - VAT Transit account.