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PU 423|422|421 (Globe) and 500|422|421 (Globe+): Declaration of VAT returns affected by bad debts (Germany legislation)

For 2021 VAT returns, the German tax authorities have provided calculation logic to bad debts. This is for declaration purposes only and do not affect the final sales tax amount. As such, Exact Globe Next now supports the recording of taxable transactions affected by bad debts according to the VAT return form's boxes 37 and 50 (which were already supported previously). This is shown as follows:

Note that:

  • Line 73 (Box 50) relates to lines 20-24 (Boxes 81, 86, 35, 77 and 76) of the VAT return
  • Line 74 (Box 37) relates to lines 55 (Box 66), 59 (Box 63) and 60 (Box 59) of the VAT return 

To take advantage of this, a separate bad debt VAT code needs to be created to record bad debt transactions that affects VAT. In this bad debt VAT code, the VAT to pay account and VAT to claim account fields must be linked to the same bad debt GL account. This will be used as reference when generating the VAT Overview report. This is shown as follows:

Note that when the VAT Overview report is generated, and the calculated figure in box 37 is positive, boxes 37 and 50 will be filled up. Otherwise, the boxes will be left empty as negative amounts cannot be accepted via the tax portal.

For more information on the basis of this change, see

 Main Category: Attachments & notes  Document Type: Release notes detail
 Category:  Security  level: All - 0
 Sub category:  Document ID: 30.475.783
 Assortment:  Date: 20-05-2022
 Release: 423  Attachment: