How to: Prepare for VAT Transactions Reports
You must submit periodic reports to the tax authorities to list transactions that include VAT with amounts over a specific threshold. To prepare for these reports, you must set up VAT posting to include VAT transaction report amounts.
To set up VAT transaction amounts
In the Search box, enter VAT Transaction Report Amounts, and then choose the related link.
Fill in the fields as described in the following table.
Field Description Starting Date
Specifies the start date for this threshold, such as 01.05.2011.
Transactions that are posted on or after this date are included in the calculations for the VAT transaction report.
Threshold Amount Excl. VAT
Specifies the minimum base amount that will be included in the VAT transaction report.
This amount is determined by the requirements from the tax authorities.
Threshold Amount Incl. VAT
Specifies the minimum amount including VAT that will be included in the VAT transaction report.
You must also configure each VAT posting setup that is used for transactions that are included in the VAT transaction report.
To set up VAT posting for VAT transaction reporting
In the Search box, enter VAT Posting Setup, and then choose the related link.
Select the VAT posting setup that must be enabled for VAT transaction reporting. Fill in the fields as described in the following table.
Field Description Include in VAT Transac. Rep.
Select to include transactions that use this VAT posting setup in the VAT transaction report.
Italian legislation provides a long list of transactions that are exempt from VAT transaction reporting, such as financial transactions, insurance, and so on. If a line must be excluded from the VAT transaction reports, you can clear the Include in VAT Transac. Rep. field for that line.
When a transaction such as posting a sales invoice is made that uses this VAT posting setup, Microsoft Dynamics NAV checks if the transaction meets the threshold amounts. The check is based on document lines because a document can contain lines that must be included in the VAT transaction report and lines that must be excluded. The VAT transaction reports must only contain the lines that must be submitted, so Microsoft Dynamics NAV compares amounts against the threshold for each line rather than for a document.
Before you can create and submit VAT transactions reports, you must set up a number series.
To set up VAT reports
In the Search box, enter VAT Report Setup, and then choose the related link.
On the General FastTab, select the Modify Submitted Reports field to let users modify VAT reports that have been submitted to the tax authorities.
If the field is left blank, users must create a corrective VAT report instead.
Note
In Italy, the tax authorities require that you use corrective VAT reports and that you do not modify submitted reports.
On the Numbering FastTab, specify the number series that will be used for standard VAT reports.
Depending on the requirements, you can use the same number series for all VAT reports, or separate number series for each type of VAT report. For more information, see No. Series.
For example, if your company uses separate number series for standard and corrective VAT reports, this number series is the default number series. Users can select a different number series in the No. field if they create corrective reports.
On the VAT Registration FastTab, fill in the fields as described in the following table.
If you submit the VAT reports yourself, specify information about your own company.
If your VAT reports are submitted by an intermediary, such as a tax assistance center (CAF), you must leave the fields blank. The intermediary will then fill in the fields in the submitted report. For more information, see the Italian Revenue Agency.
Field Description VAT Registration No.
Specify the VAT registration number of your company or your tax representative
If you have a tax representative, you must fill in the field by using the VAT registration number or the fiscal code for the tax representative. You can find this information based on the value of the Tax Representative No. field in the Company Information window.
Intermediary CAF Reg. No.
Specify the CAF registration number of your tax assistance center.
Intermediary Date
Specify the date of the external party.
Note
Before you can create VAT reports, you must have configured which processes are used to print and submit the reports. For more information, see How to: Configure VAT Reports.
Updating Customers and Vendors
According to the requirements of the tax authorities, you must specify if a customer or vendor is an individual person, and if the person is a resident of Italy.
Note
The following sections describe how to modify a customer, but the same steps apply to vendors.
To specify a customer as an individual person
In the Search box, enter Customer Card, and then choose the related link.
On the Individual FastTab, fill in the fields as described in the following table.
Field Description Individual Person
Select if this customer is an individual person.
Resident
Specify if the customer is a resident in Italy.
If a customer is not a resident, you must also specify a tax representative on the Foreign Trade FastTab.
First Name
Specifies the first name of the person.
Last Name
Specifies the last name of the person.
Date of Birth
Specifies the date of birth of the person.
Place of Birth
Specifies the place of birth of the person.
If the customer is not resident in Italy and is not an individual person, you must specify a tax representative for the customer.
Note
Before you can specify a tax representative, you must have created the tax representative as a contact.
To specify a tax representative for a non-resident customer
In the Search box, enter Customer Card, and then choose the related link.
On the Foreign Trade FastTab, fill in the fields as described in the following table.
Field Description Tax Representative Type
Specifies if the tax representative is a customer or a contact. You must set this field to Contact.
Tax Representative No.
Specify the contact that is the tax representative for this customer.
You have set up information so that Microsoft Dynamics NAV will track new transactions with VAT that meet the thresholds that are specified by the tax authorities. Before you create the first VAT transaction report, you should prepare the existing data. For more information, see How to: Update VAT Transaction Data. You can then create VAT transactions reports. For more information, see How to: Create an Electronic VAT Transactions Report.
See Also
Tasks
How to: Update VAT Transaction Data
How to: Create an Electronic VAT Transactions Report