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Product Updates 411, 410, and 409: VAT Control Statement introduced (Czech legislation)

As an obligation to the tax authorities in Czech Republic, the VAT Control Statement or VCS has been made available for submission along with the VAT return effective January 1, 2016. The enhancements are described in the following.

VAT code maintenance and VCS

In relation to the VCS regulation that requires the recording of all VAT registered transactions declared in the VAT return for a specific return period, a new field named VAT control statement has been added to the General tab in the VAT codes maintenance screen, accessible via System ? General ? Countries ? Tax codes. This allows the financial transactions corresponding to the VAT code selected to be defined in the relevant section of the VCS report.

New field added to Accounts (debtors and creditors) screen

To comply with the VCS regulation to identify non-VAT payers in the VCS report, the Tax exemption number field has been added to both the debtors and creditors maintenance screens to allow input of the VAT ID for non-VAT payers. The system will retrieve the value from the Tax exemption number field only if the VAT number field is left empty.

The VAT ID will be recorded in the VCS XML tags <dic_odb> for the customer VAT number, and <vatid_dod> & <dic_dod> for the supplier VAT number.

Generating VAT Control Statement

You can generate the VCS report in the XML format by providing the relevant information at the designated fields and boxes via the newly added menu path Finance ? VAT / Statistics ? VAT control statement, as shown in the following example:

In the Return section, fill in the same information for the period of the VAT return you are reporting. For more information on the Non-deductible VAT codes and Coefficient methods of calculation, see Product Updates 410 and 409: Non-deductible VAT functionality supported in VAT control statement (Slovak legislation) and Product Updates 408, 407, and 406: VCS (VAT Control Statement) in XML is now supported (Slovak legislation). Note that you can only choose one of the calculation methods to be used for the VAT return computation. The amounts resulting from the calculation method selected will be reflected in sections B2 and B3 of the VCS XML file.

In the Default values section, define the default code for the registered supplies at Section A1 / B1: Code of goods and threshold amounts for purchase and sales transactions. However, you only need to define the code of goods if the Assortment 10 field in the Basics tab of the Items screen is not filled. For more information on configuring the item codes for your supplies, see Item data settings.

The reference number of the tax document used for the purchase and sales entries can be defined in the Reference number section. By default, the Your reference option is selected at Purchase and Our ref. at Sales. The other options such as Free field 1, Free field 2, and Free field 3 derive from the respective transaction header. If one of these options is selected but contains no reference numbers, the system will retrieve the values from the default option. The Sorting sequence field allows you to define the VAT percentages for the VAT 1, VAT 2, and VAT 3 columns in the VCS report. When left blank, these fields display the value “0”.

When you click Start in the VAT control statement screen, the VAT return – page 1 screen will be displayed. This screen houses some of the input which are mandatory for the VCS report.

After you have defined the information in the VAT return – page 1 screen and clicked Start, the system will validate the input and produce an error report if invalid values or formats are found, as shown in the following:

During the file generation process, you will be requested to perform the VAT revaluation for transactions involving foreign currencies, if such entries exist. Otherwise, this step will be skipped. The VCS report will be generated and stored in the location predefined at Export directory in the VAT control statement screen. If the VCS report has been generated before, after the validation, a message will be displayed requesting your confirmation to replace the old report with the latest copy.

The following is an example of the VCS XML file:

For general information on VAT control statement, see Instruction document VAT Control Statement.