Instruction document VAT Control Statement

In Exact Globe Next VAT transactions heavily rely on the use of VAT codes. With the use of the proper VAT codes in your transactions you can make sure that transactions will appear in the correct section of the VCS. This means it's a prerequisite to have the standard VAT (return) process in place to be able to generate a correct VCS.

For the generation of the VCS the VAT code maintenance will be extended with a drop down box where you can select the section of the VCS for the transactions made with a particular VAT code. This will mean that you need to have separate VAT codes for all transactions which needs to be placed in a particular section of the VCS. Below a list of the different options in this drop down box.

• A1
• A2
• A3 – Organizace
• A3 – Soukromá osoba
• A4
• A4 – § 44
• A4 – § 89
• A4 – § 89 – § 44
• A4 – § 90
• A4 – § 90 – § 44
• A4/A5
• A5
• B1
• B2
• B2 - § 76
• B2 - § 44
• B2 – § 76 - § 44
• B2/B3
• B3
• B3 - § 76

Below you will read an explanation of each section in the VCS and how to set up your VAT code maintenance. On top of that some sections will need additional information which will be taken from your item master data and/or debtor master data. This will be explained in detail below as well.

In most sections you need to mention the date of supply or the date when the tax is liable. In most cases this will be the fulfillment date from Exact Globe Next. In other cases it’s advisable to make sure the fulfilment date in Exact Globe Next always reflects the date you want to use in the VCS.

Next to the VAT return, it is however possible to use another date for the VCS (transaction date or reporting date). But because the VCS is linked to a VAT return, you will select a return period (assigned or processed) when generating a VAT return. This will determine which transactions will be part of the VCS. The choice of date will determine which date will be used in the VCS for the transactions linked to the chosen return period.

In most sections of the VCS you will need to supply the tax document number. Exact Globe Next will use the our reference for sales and the your reference for purchases as default. If these two fields do not contain the tax document number in your case, you can use the three free fields in the sales and purchase journals to store the tax document number. When generating the VCS you are asked which field to use for the tax document number. The default setting will be the Our and Your references. In case you used one of the free fields, you need to select that field. If for some reason the free field chosen is empty for a certain transactions, Exact Globe Next will use the Our or Your reference instead.

The free field 1 to 3 in the sales and purchase journals can be used in the invoice, order and purchase module as well. If you import such entries, the free fields are also available for import. When purchase orders, sales orders and/or sales invoices are processed and are reflected in the financial module, the values of those free fields are taken along.

Section A.1

In this section there is one point of attention. For every supply you need to report a code of supply. The following codes are applicable:

1 - dodání zlata (plnení podle § 92b)
3 – dodání nemovité veci, pokud se pri tomto dodání uplatní dan (plnení podle § 92d)
4 - poskytnutí stavebních nebo montážních prací (plnení podle § 92e)
5 - zboží uvedené v príloze c. 5 zákona o DPH (plnení podle § 92c)
11 - prevod povolenek na emise skleníkových plynu
12 - obiloviny a technické plodiny
13 - kovy, vcetne drahých kovu
14 - mobilní telephony
15 - integrované obvody a desky plošných spoju
16 - prenosná zarízení pro automatizované zpracování dat (napr. tablety ci laptopy)
17 - videoherní konzole

If all your items belong to the same code of supply, you don't have to do anything. When generating the VCS, you will be asked to enter the code of supply. This one will be used for all your supplies.

If you have items with different codes of supply, you need to take some time to set up your item master data correctly. Exact Globe Next will use Assortment 10 of the item maintenance to report the code of supply for all the supplies in the VCS.

You can set up the Assortment 10 with the codes of supply via Invoice > Items > Assortments.

After creating the codes of supply, you can link it to your items.

A fast way of doing this is via the Batch Update function which you can find via Invoice > Items > Maintain.

On top of that you will need a VAT code linked to ‘A1’ to make sure transactions are placed in this section of the VCS.

Section A.2

There are no special points of attention for this section. The only thing necessary is to link a VAT code to ‘A2’ in the VAT code maintenance and use this VAT code for each transaction which needs to appear in this section.

Section A.3

If you only supply gold to customers with a VAT ID, you need to make sure the VAT ID is stored in the debtor maintenance (Finance > Debtors > Maintain). On the tab Financial, you can enter the VAT ID in the VAT number field. For these transactions you use a VAT code which is linked to ‘A3 – Organizace’.

If you also supply gold to customers without a VAT ID, you need to leave the VAT number field empty. Instead you enter the birth day in the field Fiscal Code (in the following format: DD.MM.RRRR). Next the name and surname or business name needs to be present in the debtor name field. On top of that the address 1 field, postal code and country needs to be entered. For these transactions you use a VAT code which is linked to ‘A3 – Soukromá osoba’.

Section A.4

This section has two points of attention. First every supply needs to reported with a regime code of supply. This can be a normal performance, a supply under the regime of Article 89 or a supply under the regime of Article 90. Secondly it could be that you have transactions which fall under Article 44.

To make sure transactions are reported under the right regime code of supply and indicated as Article 44 transactions or not, you need to have separate VAT codes for each combination of those two variables relevant to your business. Below you can see which options to select in the VAT code maintenance to make sure transactions are correctly reflected in the VCS.

Section VAT code	Regime code	Value § 44
A4	Normal performance (0)	No
A4 – § 44	Normal performance (0)	Yes
A4 – § 89	Regime § 89 (1)	No
A4 – § 89 – § 44	Regime § 89 (1)	Yes
A4 – § 90	Regime § 90 (2)	No
A4 – § 90 – § 44	Regime § 90 (2)	Yes

Section A.4 or A.5

In case you have no transactions where no § 44 is involved and there is no special regime (so it's a normal performance), you could choose for this option. If a VAT code linked to 'A4/A5' is used, Exact Globe Next will check the total invoice amount including VAT. If the amount is above 10.000 CZK, the transactions will be placed in section A.4 (with the value 'NO' for § 44 and regime code '0'). In case the amount is below or equal to 10.000 CZK, the transaction will be placed in section A.5.

Section A.5

There are no special points of attention for this section. The only thing necessary is to link a VAT code to ‘A5’ in the VAT code maintenance and use this VAT code for each transaction which needs to appear in this section.

Section B.1

In this section you also need to report a code of supply (similar with section A.1). The following codes are applicable:

1 - dodání zlata (plnení podle § 92b)
3 – dodání nemovité veci, pokud se pri tomto dodání uplatní dan (plnení podle § 92d)
4 - poskytnutí stavebních nebo montážních prací (plnení podle § 92e)
5 - zboží uvedené v príloze c. 5 zákona o DPH (plnení podle § 92c)
11 - prevod povolenek na emise skleníkových plynu
12 - obiloviny a technické plodiny
13 - kovy, vcetne drahých kovu
14 - mobilní telephony
15 - integrované obvody a desky plošných spoju
16 - prenosná zarízení pro automatizované zpracování dat (napr. tablety ci laptopy)
17 - videoherní konzole

If all your items belong to the same code of supply, you don't have to do anything. When generating the VCS, you will be asked to enter the code of supply. This one will be used for all your supplies.

If you have items with different codes of supply, you need to take some time to set up your item master data correctly. Exact Globe will use Assortment 10 of the item maintenance to report the code of supply for all the supplies in the VCS.

You can set up the Assortment 10 with the codes of supply via Invoice > Items > Assortments. After creating the codes of supply, you can link it to your items. A fast way of doing this is via the Batch Update function which you can find via Invoice > Items > Maintain.

On top of that you will need a VAT code linked to ‘B.1’ to make sure transactions are placed in this section of the VCS.

Section B.2

This section has two points of attention. First it could be that for certain transactions a coefficient needs to be applied. This means a part of the VAT is deductible instead of the full tax amount. Secondly it could be that you have transactions which fall under Article 44.

To make sure transactions are reported as deduction adjustment and indicated as Article 44 transactions or not, you need to have separate VAT codes for each combination of those two variables relevant to your business. Below you can see which options to select in the VAT code maintenance to make sure transactions are correctly reflected in the VCS.

Section VAT code	Deduction adjustment	Value § 44
B2	No	No
B2 – § 76	Yes	No
B2 – § 44	No	Yes
B2 – § 76 – § 44	Yes	Yes

If a coefficient is applicable for you, Exact Globe Next support two ways to handle such transactions. First option is to register all transactions with the full tax amount and tax base amount. When generating the VCS, you enter the coefficient and upon generation of the VCS Exact Globe Next will calculate the deductible VAT amount and VAT base amount. This is only calculated for the VCS, so afterwards you need to create correction entries to make sure your administration reflects the correct VAT amounts.

Second option is to use the non-deductible VAT functionality in Exact Globe Next. In a VAT code you can specify the percentage which is deductible. Then for each transaction entered the VAT ledgers will only contain the deductible part of the VAT amount. The non-deductible part will be booked automatically on a separate general ledger or the cost/revenue ledger used in the entry. During generation of the VCS no extra calculation is needed and afterwards you don't need to create correction entries. More detailed information about the setup of the non-deductible VAT functionality can be found in document Working with non-deductible VAT

Section B.2 or B.3

In case you have no transactions where a deduction of tax (non-deductible VAT) is applied and no § 44 is involved, you could choose for this option. If a VAT code linked to 'B2/B3' is used, Exact Globe Next will check the total invoice amount including VAT. If the amount is above 10.000 CZK, the transactions will be placed in section B.2 (with the value 'NO' for § 44 and the value 'NO' for deduction adjustment). In case the amount is below or equal to 10.000 CZK, the transaction will be placed in section B.3.

Section B.3

In this section it could be that for certain transactions a coefficient needs to be applied (similar to section B.2). Below you will see what to select in the VAT code maintenance to make sure the transaction is shown correctly in the VCS.

Section VAT code	Deduction adjustment
B3	No
B3 – § 76	Yes

The VCS will be filed only electronically, in a format and structure published by the tax authorities. This XML file is supported by Exact Globe Next. You can upload the file in the tax portal. There you can check if the VCS is correct and submit it to the tax authorities. On top of that you can make a print out of the VCS in the tax portal as well.

If you find incorrect entries in the tax portal, you can correct them before submitting the VCS. Another way is to correct the transactions in Exact Globe Next and generate the VCS again. Then you can upload the corrected XML file in the tax portal again.