1 Table of Contents 1. Purpose of the document ............................................................................................................................................... 2 2. Assumptions and Prerequisites....................................................................................................................................... 2 3. Feature Specific Setup..................................................................................................................................................... 3 Legal Reporting Unit Tax Profile Registration ..................................................................................................................... 3 Customer Party Tax Profile Registration ............................................................................................................................. 5 Taxes ................................................................................................................................................................................... 6 Tax Reporting Types and Codes .......................................................................................................................................... 6 Tax Status ............................................................................................................................................................................ 8 Tax Determining Factors ..................................................................................................................................................... 9 Tax Status Rules ................................................................................................................................................................ 10 4. Transaction Entry in Fusion Receivables ....................................................................................................................... 11 5. Reporting....................................................................................................................................................................... 12 Report Submision .............................................................................................................................................................. 12 Creating a csv file .............................................................................................................................................................. 13 Reviewing the pdf Output ................................................................................................................................................. 14 6. Appendix ....................................................................................................................................................................... 15 VAT Reporting for the UK Fusion Financials for EMEA ERP CLOUD
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1
Table of Contents
1. Purpose of the document ............................................................................................................................................... 2
2. Assumptions and Prerequisites ....................................................................................................................................... 2
3. Feature Specific Setup..................................................................................................................................................... 3
Legal Reporting Unit Tax Profile Registration ..................................................................................................................... 3
Customer Party Tax Profile Registration ............................................................................................................................. 5
Tax Reporting Types and Codes .......................................................................................................................................... 6
Tax Status ............................................................................................................................................................................ 8
Tax Status Rules ................................................................................................................................................................ 10
4. Transaction Entry in Fusion Receivables ....................................................................................................................... 11
Creating a csv file .............................................................................................................................................................. 13
Reviewing the pdf Output ................................................................................................................................................. 14
This document explains the implementation and usage guidelines for the “Reverse Charge Sales Listing Report for UK”,
using an end-to-end flow example. Details provided include pre-requisite setup, important transaction entry aspects,
and report output details.
The report provides a record of UK sales for the high value electronic goods subject to the reverse tax charge reported
to HMRC (HM Revenue & Customs). In particular, the specified goods to which the reverse charge applies are :
Mobile telephones
Integrated circuit devices, such as microprocessors and central processing units, in a state prior to integration into end user products
Emissions allowances, emissions reduction units and emissions reduction certificates
The reverse charge only applies to the sale and purchase of specified goods and services:
Between UK tax registered organizations
For goods, where the VAT exclusive value of the supply is above the £5,000.00 threshold, and
Where the goods and services are bought and sold for business use
The “Reverse Charge Sales Listing Report for UK” considers the sales side only. It is the responsibility of the customer, rather than the supplier, to account to HM Revenue and Customs (HMRC) for VAT on supplies of the specified goods or services.
Further details can be found on the HMRC web site. Refer to the appendix.
2. Assumptions and Prerequisites
In this document, the following entities are assumed to have already been set up :
Data Security
Geographies
Enterprise Structure
Tax Regime to Rate setup
Tax Party Profiles
Tax Rules
Customers
Common Options for Payables and Receivables
Receipt Classes and Methods
It is recommended that the ‘Implementation Project’ is complete for your organization before commencing the ‘Feature
Specific Setup’ outlined below. If you require further details, refer to the Appendix.
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3. Feature Specific Setup
Setup the following, prior to running the “Reverse Charge Sales Listing Report for UK” report.
Legal Reporting Unit Tax Profile Registration
The ‘Legal Reporting Unit’ tax profile needs to be setup as ‘Self Assessment’, so that the tax is calculated correctly for UK
Reverse Charges. Register the Legal Reporting Unit tax profile for ‘Self Assessment’ on the ‘Tax Registration’ :
Task name: Manage Party Tax Profiles
Navigation : Navigator –> Setup and Maintenance -> Manage Party Tax Profiles
Search For : Legal Reporting Unit Tax Profiles
Search for the specific Legal Reporting Unit value that corresponds to the Legal Entity used on Fusion Receivables
invoices for which self-assessed tax is to be applied.
Review the ‘Tax Registrations’ Tab on the existing Legal Reporting Unit Tax Profile selected. Create a tax registration for your UK tax regime if you have not done so already.
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Once the tax registration record has been defined, place your cursor on the Tax Regime Code for which self-assessed tax
is desired. Then, select ‘View Registration Details’.
In the Edit Tax Registration page, confirm the ‘Set as self-assessment (reverse charge)’ Checkbox is ‘checked’
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Customer Party Tax Profile Registration
Reverse Charges for the UK require customers to be registered. The registration numbers are then displayed in the
report. Create customers and ensure the ‘Registration Number’ is entered for the third party site tax profile.
Task name: Manage Party Tax Profiles
Navigation : Navigator –> Setup and Maintenance -> Manage Party Tax Profiles
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Taxes
Setup the VAT tax for the UK Tax Regime. This is needed for the tax status code setup.
Task name: Manage Taxes
Navigation : Navigator –> Setup and Maintenance -> Manage Taxes
Tax – GB VAT
Tax Rate - Customer to pay VAT to HMRC at the rate of 20% of the VAT exclusive selling price for reverse charge goods.
Tax Reporting Types and Codes
Tax Reporting Types and codes are required to identify your reverse charge transactions. The report will then display the transactions for your Tax Reporting Type and Code combination.
Determining Factor Set Code – GBMTIC NEW ZERO NO INV
Configure the tax determining factors and assign the Reverse Charge tax combinations when the following are true:
‘Ship to’ and ‘Ship from’ is located in the UK
Defined Product Category is added to Receivables transaction
The customer is registered within the Party Tax Profile
The transaction contains the correct Business Transaction Category Screens below demonstrate the configuration in the Fusion Financials for the determining factors:
Navigation: Setup and Maintenance > Manage Tax Condition Sets
Condition Set Code - GBMTIC NEW ZERO NO INV
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Tax Status Rules
The Tax Status Rules are required to attach the tax condition set for rule derivation.
Setup a tax status rule and attach the tax condition set.
Navigation : Setup and Maintenance > Manage Tax Rules
Rule Code - GBMTIC ZERO RATE NEW AR
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4. Transaction Entry in Fusion Receivables
Enter Fusion Receivables transactions, paying particular attention to the following.
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