3212426 - Non Deductible VAT Wrongly Considered in Quarterly VAT Return for Italy

You have generated your quarterly VAT return, however the Total tax receivable amount in the tax return differs from total receivable tax amount in Reported VAT / Sales Tax Items report.

SAP Business ByDesign.

1. Go to Tax Management work center.
2. Go to VAT Returns view.
3. Open the reported VAT return.
4. Go to Tax Returns tab.
5. Click Export -> To Microsoft Excel.
6. Open the exported excel file.
7. Filter the content to show only the 'Receivable' tax.
8. Sum the Tax Amount of all Receivable entries.
9. Note down the amount.
10. Open the report Reported VAT / Sales Tax Items.
11. Give all the relevant selection parameters to include data from this tax return ID in the report.
12. Filter by 'Receivable' tax and sum up the total receivable amount.

You noticed that the Total Receivable Amount from the Tax Return differs from the total receivable amount shown in the report for the same Tax Return ID.

This happens due to non-deductible items being considered in the run. The total tax amount you see in Tax Return tab is always aggregated one.

If you want to see the deductible amounts follow the following path.

1. Open the return in Tax Return Tab.
2. Navigate to Details.
3. Go to personalisation mode and check the field Deductible Tax Amount.

This enables the field in the Details screen so that you know whether the tax amount is deductible or non-deductible.

Alternatevely, if there are too much data in the VAT Return and you are unable to check the details for each entry, you can check the same via Reported VAT / Sales Tax Items or Reported VAT / Sales Tax Items reports. Through these reports, you're able to pull the Deductible Tax Amount for the entries.

Italy. Tax Return. Tax Management. , KBA , SRD-FIN-GLO-TAX , GLO - Tax Declaration , How To