VAT Reporting and Settlement

Microsoft Dynamics NAV contains some special tables to manage the tasks necessary for settling VAT and reporting to the customs and tax authorities.

VAT Reporting

You can use tables to calculate the VAT due for a period. Microsoft Dynamics NAV creates an entry in the VAT Entries window for each posted transaction that involves VAT. These entries are used to calculate the VAT that must be settled for a given period. Then you can prepare and print the VAT statement report.

VAT Statement

You use a VAT statement to specify the basis for calculating the VAT payable to the tax authorities. In the VAT Statement window, you define the VAT statement based on the accounts in the Chart of Accounts window or based on entries in the VAT Entries window. The advantage of using the VAT entries option is that you can close these entries by posting the VAT Settlement. It is easier to locate VAT correction entries in previous accounting periods, where the VAT statement has been done, by working with VAT entries.

The VAT statement is normally defined when you initially set up the company in the program. It is recommended that you set up the statement with the format that is required by the tax authorities. After the statement has been defined, it can be previewed and printed.

For more information on VAT statements, see How to: Define VAT Statements, How to: Preview VAT Statements, and How to: Print VAT Statements.

VAT Settlement

Periodically, you must remit the net VAT to the tax authorities. You can use a batch job as often as you want if you need to settle VAT frequently. After you have approved the VAT statement, you can run the Calc. and Post VAT Settlement batch job to close the open VAT entries and transfer purchase and sales VAT amounts to the VAT settlement account.

For more information on transferring VAT amounts, see How to: Transfer VAT Amounts to the Settlement Account.

Note

As soon as the VAT entries have been posted and their status is closed, they cannot be opened again. However, you can still create VAT reports from these closed entries.

See Also

Tasks

How to: Record VAT
How to: Enter VAT-liable Amounts Without VAT in General Journals
How to: Set Up and Record Intrastat
How to: Create a VAT Combination Setup
How to: View VAT Entries

Concepts

Recording VAT
Import VAT