2756785 - How to report VAT correction amount for Belgium

You have submitted an erroneous tax item to the tax authority and you need to correct the information and submit a corrective VAT return.

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SAP Business ByDesign

SAP has delivered the following tax codes for reporting VAT correction in VAT returns:

• 320 - [Box 61] VAT correction - output tax
• 020 - [Box 62] VAT correction - input tax

The tax codes 320 and 020 are available in all tax code related documents such as Sales/Purchase Order, Supplier/Customer Invoice, Credit Memos, Manual Tax Entries, and so on. However, they should be used only in Manual Tax Entry as the VAT amount to be corrected should be reported to the tax authority.

To report a VAT correction using the new tax codes, follow the steps below:

Prerequisite

• You have maintained the new tax accounts or assigned the tax accounts to the account determination groups before using the new tax events/codes.

Steps:

1. Go to Tax Management work center
2. Under Manual Tax Entries, choose the VAT Entries view
3. Choose New -> Tax Entry and enter the mandatory details like company, currency data, posting date, as well as the tax country.
4. In each line item, enter the relevant account determination group (G/L Account), the tax code to be used, and the credit or debit amount to enable the gross amount balance to be cleared.

Example of an account assignment using the new tax code:

In the first row, enter the following:

• the G/L account of a counter account to the tax account for correction
• the tax code as 320, the tax amount and the base amount on the credit side

In the second row, enter the following:

• the same G/L account as above
• the sum of tax base and tax amount on the debit side

5. Choose Check, to test whether the entries are valid
6. Choose Post, to make the posting to the tax accounts and to enter the tax items in the tax register. The system creates a journal entry.

7. You can now create and execute a new Tax Return Run. In the return, you now see the tax amounts in the corresponding tax boxes. Please note that the minus sign indicates that it is payable to the tax authority.

In the xml file, you will find the same data populated in the respective tax boxes:

KBA , belgium vat correction , SRD-FIN-GLO-TAX , GLO - Tax Declaration , How To