Tax on natural resources report

[アーティクル]
09/29/2023

This article explains how to set up and generate the Tax on natural resources (NR Tax) report.

Latvian companies must periodically submit a Tax on natural resources (NR tax) report. This functionality applies only to legal entities in Latvia. Tax must also be calculated on imported or self-produced goods that are used internally. Finally, tax on natural resources must be calculated for packaging materials that are used to package goods that are sold within the reporting period.

Prerequisites

Prerequisite	More information
Set up a tax authority.
Set up the ledger posting group for the Natural resources tax.
Set up a settlement period for the Natural resources tax.
Set up sales tax codes for the Natural resources tax.
Set up sales tax groups for the Natural resources tax.
Set up tax groups for the Natural resources tax.	Use the Natural resources tax group page to set up tax groups that define the correct sales tax codes, based on the intersection of the tax group and sales tax group for the Natural resources tax.
Set up inventory parameters.	On the Inventory and warehouse management parameters page, set the Calculate packing material fees option to Yes. In the Sales tax group field, select a sales tax group for the Natural resources tax. By default, this sales tax group is used to find the sales tax code that is used for report calculations if a transaction that is transferred to the report has no sales tax group.
Specify natural resources tax information for an item.	In Product information management, on the Released products page, on the Manage inventory tab, in the Natural resource tax group field, specify a value to calculate the Natural resources tax for an item in a sale or in inventory transactions.

Report setup

Before you can generate the Natural resources tax report, you must set up the lines for each report layout. Repeat the following steps for every line in each report layout.

Click Tax > Setup > Sales tax > Natural resources tax report setup.
Click New.
In the Form number field, select the form to set up:
- Form 2 – This form shows information about the use of natural resources and any environmental pollution that is generated within the reporting period.
- Form 3 – This form shows information about the tax on natural resources that is calculated for goods that were imported or produced by the company and sold in Latvia for the first time.
Select a sequence number. This number specifies the position of the line in the sequence of lines on the report.
In the Line type field, select the type of report line:
- Header – The line is printed as header lines on report pages.
- Line
- Total – The line shows the summarized line values.
If you selected Line in step 5, enter the line code for the Natural resources tax report line.
In the Description field, enter a brief description of the transaction.
In the Total line code field, enter the total line code. If you selected Line in step 5, the Warehouse field shows the warehouse code.
In the Sales tax code field, select the sales tax code that was created for the calculation of the Natural resources tax.
In the Packing material code field, select the packing material code that was created for the Natural resources tax. This field isn't available if you select a sales tax code in the Sales tax code field. Only one of these two fields is available at a time.

Example: Form 2 layout

This example layout has the following information elements:

A header that introduces the content of the report
Lines that show the descriptions and individual values to report
The total amounts for the line values

Form number	Line type	Sequence number	Line code	Description	Total line code	Location Id	Natural resources Tax code
Form 2	Header	1		I. Tax on utilization of natural resources
Form 2	Total	2	1	Utilization of natural resources (Total)	3
Form 2	Line	3	1.1	Contoso Manufacturing Co	1	785200	NR-water
Form 2	Line	4	1.2	Sandpit Nr1	1	600900	NR-sand
Form 2	Total	5	2	Environment pollution (Total)	3
Form 2	Line	6	2.1	Contoso Manufacturing Co	2	785200	NR-CO2
Form 2	Line	7	2.1	Reporting Line	2
Form 2	Total	8	3	Total line (line1+ line2)
Form 2	Line	9	4	Reporting Line

Example: Form 3 layout

This example layout has the following elements:

A header that introduces the content of the report
Lines that show the descriptions and individual values to report
The total amounts for the line values

Form number	Line type	Sequence number	Line code	Description	Total line code	Natural resources Tax code	Packing material code
Form 3	Header	1		I. Tax on hazardous goods, packing materials and throwaway dishes
Form 3	Total	2	1	Hazardous goods - Total:	4
Form 3	Line	3	1.1	Aluminum foil	1	NR-GAlum
Form 3	Line	4	1.2		1
Form 3	Total	5	2	Packing materials - Total:	4
Form 3	Line	6	2.1	Packing: glass	2		PM-Glass
Form 3	Line	7	2.2	Packing: plastics	2		PM-Plastic
Form 3	Line	8	2.3	Packing: metal foil	2		PM-MetalF
Form 3	Line	9	2.4	Packing: wood, paper, cartons	2		PM-WPC
Form 3	Total	10	3	Throwaway dishes - Total:	4
Form 3	Line	11	3.1	plastics	3		T-Plast
Form 3	Line	12	3.2	Metal foil	3		T-MetalF
Form 3	Line	13	3.3	Wood, paper, cartons	3		T-WPC
Form 3	Total	14	4	Total line (line1+ line2 + line3)

Generate the Natural resources tax report

Natural resources taxes are calculated during inventory journal transactions, and when sales or project invoices are created for Latvian customers, if the transactions involve items that are subject to the Natural resources tax. This section describes to get a list of the Natural resources tax transactions that are related to packing materials and print the Natural resources tax statement.

Click Tax > Declarations > Sales tax > Tax on natural resources.
Click Create > Create natural resources tax lines on package.
Enter the quarter and the year for the reporting period.
Click OK to transfer the information that will be used to generate the report about the tax on packing materials for the reporting period.
Click Create > Create natural resources tax lines on items.
Enter the quarter and the year for the reporting period.
Click OK to transfer the information that will be used to generate the report about the tax on dangerous materials.

After the Natural resources tax lines are created, you can manually add or modify the information on each line.

Field	Description
Voucher	The voucher number in the ledger.
Date	The date of the Natural resources tax transaction.
Invoice	The identifier of the invoice.
Transaction type	The type of the Natural resources tax transaction. The available options are Tax on dangerous items and Tax on packing materials.
Natural resource tax group	The tax group for natural resources. This field isn't available when Tax on packing materials is selected in the Transaction type field.
Sales tax group	The sales tax group that is created for Natural resources taxes that are calculated during a sale or a purchase transaction. This field isn't available when Tax on packing materials is selected in the Transaction type field.
Sales tax code	The code that identifies the sales tax.
Tax Base Amount	The original amount that the sales tax is calculated from. This field isn't available when Tax on packing materials is selected in the Transaction type field.
Tax amount	The calculated sales tax amount.
BOM line	Select this option if the transaction is a BOM (bill of materials) line.
Reference	The module that generates the transaction.
Number	A number such as an order number, project number, or production number.
Reference table ID	The source table for the transaction.
Reference	The source reference field in a different table.

Note: The fields in the Packing material field group are available only when you select Tax on packing materials in the Transaction type field.

Click Data validation to validate the Natural resources tax transaction lines.
Correct any errors by manually editing the lines.
Click Print.
Enter the report year.
Select a managing director.
Select the person who is responsible for the report.
Select the tax authority.
Click OK to print the statement for tax on natural resources.