Postponed VAT

Starting with the 1st of January 2013, the legal requirements demand implementing and using postponed VAT. In order to comply with these demands, a certain working procedure must be followed. It implies using standard and modified functionalities. Also, a certain setup is needed. In addition, VAT reports were updated to include documents having postponed VAT in separate sections.

In order to use this functionality you have to post a purchase invoice, a payment for this invoice and verifying the Purchase VAT Journal.

Create a purchase invoice with postponed VAT

  1. Open Purchase Invoice from Search button from the right.
  2. In Purchase Invoice Lines create the lines according to the received document.
  3. In Invoicing tab you must check and update filed VAT Bus. Posting Group with the posting group that defines the postponed VAT.
  4. Verify the invoice statistics, pressing Statistics button (F7).
  5. Post the invoice from Posting tab (F9).
  6. Verify the GL Entries generated from the posted invoice. Search Navigate and type the posted invoice number. Postponed VAT will be register on GL account 44281.
  7. Verify the VAT Entries generated from the posted invoice. In VAT entries check the following information:
    • Postponed VAT Payment = Yes
    • Base = 0
    • Amount = 0
    • Unrealizead Base = the total amount without VAT from the invoice
    • Unrealized Amount = the total VAT amount from the invoice

Create and post a payment for the posted invoice

  1. From General Journal (from Search button) create a new payment for the Vendor no. and apply to the posted invoice above.
  2. Post the payment and verify the GL entries.

Generate the Purchase VAT Journal

  1. In Search box type Purchase VAT Journal and open the report.
  2. Get entries from Process tab (Get VAT Entries- Purch.) for the period you used for posting the purchase invoice and payment.
  3. Print the Purchase VAT Report and verify the Domestic acquisitions of goods and services and Domestic acquisitions of goods and services taxable with postponed VAT.
  4. In section Domestic acquisitions of goods and services taxable with postponed VAT you must have the following values:
    • Unrealized base VAT = the base amount from the posted invoice;
    • Unrealized VAT = the VAT amount from posted invoice;
    • Realized Base VAT in period = the base amount from the payment;
    • VAT Amount in period = the VAT amount from the payment;
    • Remaining Unrealized Base VAT = the base amount related to the remaining amount of the invoice;
    • Remaining Unrealized VAT Amount = the VAT amount related to the remaining amount of the invoice

Posting result

This working procedure generates specific GL notes and VAT entries for invoices with postponed VAT. In addition, VAT reports were updated to include documents having postponed VAT in separate sections.