1. Objective and Scope

1.1. Objective of this Operation

The objective of this document is to explain how to post the monthly VAT "centralization" for NL VAT accounts: we have to determine if we have a debt or a receivable position towards the VAT administration. 
The VAT reporting obligations in scope for Luxembourg are the following:

• VAT return
• ESL – European Sales Listing

This VAT procedure compliance process manual is to be used as a step-by-step guideline to facilitate the VAT reporting by SBS of the operations made by Solvay entities in Netherlands. 
For any general questions with respect to the Netherlands VAT compliance requirements, please refer to the general VAT / Intrastat compliance manual for Netherlands. 
During VAT Return Calculation (done as of D+3) in case of doubt Finance Operations  must contact the Country Specialists. In the sequence of this procedure VAT ledger will be reconciled defining the VAT position (payment/refund). In case of refund RtR-BO must request refund form. In case of payment position RtR-BO must request a payment position form. 
After VAT Return is accomplished, RtR-BO sends package to the Country Specialists for review. After the review, the package will be addressed to Local accountants. Local Accountants will apply final validation and ensure the electronic filling and payment. Proof of payment will be addressed to RtR-BO for payment proof archiving. 
Deloitte will send to Local Accountants request for VAT & Intrastat checks applied.
All this flow will respect deadlines proposed in section 1.2 of this. 

RtR-BO  must send to local accounting team:

1. VAT return excel file
2. ESL (European Sales Listing)

1.2. Scope

This procedure applies to 6 companies in the scope of this procedure for Netherlands, listed below:

2. Definitions

See Finance Glossary:

• ESL

3. Tasks description

3.1. Responsibilities

The proposed deadlines for delivery of information between RtR-BO(change RtR-BO) and local accountants are the following ones:

3.2. I post the monthly VAT

This section explains the process of:

• Preparation of VAT reports in SAP;
• How to extract those reports;
• Where to include them in excel file for preparation VAT Return and ESL reports;
• Quality checks necessary to ensure good reporting.

3.2.1. I calculate the VAT return

3.2.1.1. I run the SAP transaction S_ALR_87012357 – advance return for tax on sales/purchase

Run S_ALR_87012357 and insert variant (pick variant from point above).

Program run date is "current date".

The outcome is the following:

3.2.1.2. I fill the BTWFORM file

Please go to the following path in order to open the respective company file from M-1: 
M:\RtR BO Countries - BeNeLux\07 - General\Intrastat e VAT\Netherlands\VAT

See below the form: 

How to fill: 

Enter the amounts on the BTWform coming from transaction S_ALR_87012357.
We need to fill the following tax codes:

• FG; (FJ+FK); (FH+FI+FP); (F8+FS) and (F4+FQ)

For line 5B, we need to extract the values coming from the line items for the respective current date from FBL3N for accounts 2411020000 + 2411020031 + 2411030031

3.2.2. I submit the European Sales and Purchase Listing – ESL

3.2.2.1. I run the SAP transaction S_ALR_87012400 – run SAP ledgers

Run transaction S_ALR_87012400 - EC Sales List (Netherlands) and enter the appropriate variant 0294 and the appropriate release date to determine the reporting period.

• Company code = 0294;
• Reporting period = MM/YYYY

Go to the end of the report and click twice on double star company code to collapse the information by VAT tax code: 

Check the first two digits on column "VAT Registration No." and guarantee that none is a NL code or non-Europe country. 
In case of non-acknowledgment of VAT code check the invoice (column "DocumentNo") image to identify the country. 
The total of the report must be inserted in BTWFORM in sheet "Invul ICL-aangifte" 

3.2.2.3. I check errors in ESL

Verify in the SAP extraction whether information is missing or if modifications are required, e.g.: missing VAT numbers: in this case, check the underlying invoices and complete the missing information.

Complete the totals in the above attached file "NL VAT return template" (see Reconciliation tab sheet). 

Finalize the ESL review package, i.e. the draft ESL return, the agreed reconciliation, the list of adjustments and the list of issues (if any). The review package should be sent to the Country Specialists for review. 

If something needs to be changed, the package will be returned to RtR-BO (change RtR-BO) for re-working. 
If no changes are necessary, the reviewed package will be forwarded to the local accountant in The Netherlands for the final review and approval. 
If the local accountant does not agree with the preparation, the Country Specialists will be notified for any changes that need to be done. 
If the local accountant approves the draft ESL return, he / she will proceed with the filing of the return. 

Follow up with the local accountant to confirm receipt of the package and get back a copy of the submitted ESL return for archiving. 

The ESL return filing will in principle be done in The Netherlands by the local accountant.

3.2.3. I perform the quality checks

The checks that need to be done are: 
Check VAT = ESL 
1st. VAT must be equal to ESL: 
Amount on box 3B sheet "Leveringen naar landen binnen de EU (FH+FI+FP) must be equal to the total of the current period on sheet "Invul ICL-aangifte". 

4. I Calculate VAT for company 8294 

Company 8294 is a branch in Saudi Arabia of company 294 and has a separate company code in SAP. The branch is obliged to file quarterly VAT returns.

4.1. I calculate the VAT return

4.1.1. I run the SAP transaction S_ALR_87012277 - G/L Account Balances

This transaction is used to analyze the VAT accounts for a specific company. This must match with the VAT calculation in the following transaction: S_ALR_87012357.

Run S_ALR_87012277 and insert variant 3S_NL_VAT.

The outcome is the following:

The total amount in “Accumulated balance” has to be the same in both tables. 

4.2. I post the monthly VAT return

Run S_ALR_87012357 and insert variant 3S_NL_VAT_8294.

In order to know what alternative tax payable account to use, check in the previous transaction. If the value is positive post in G/L account 2411040025 or negative 2451040025.

To perform the postings, go back to the initial layout of the transaction and select field “Batch input session requires”.

• Doc. Type: SA
• Posting Date: Last day of the closing month
• Due Date: 15th of next month
• Account: 2411040025 C is > 0
                  2451040025 C is < 0

The posting will appear in the table below:

The post will impact in all VAT accounts.

4.3. I run the check

You can check whether the posting was performed, in transaction SM35. Click on "log" after searching for *8294* and will appear the session with company code. Check the document number to confirm the posting. 

Also, run transaction FBL3N and insert variant 3S_NL_VAT_C.

After executing the transaction, it's possible to analyze the impact on all VAT accounts.

4.4. I perform the clearing of VAT Accounts

Run F-03 and insert the accounts that can be cleared. The tax centralization accounts can not be cleared. 

4.5. I prepare the quarter VAT report

Run S_ALR_87012357 and insert variant "8294 VAT QUART". Change the posting date to the correspondent quarter (1st - March; 2nd - June; 3rd - September; 4th - December). Insert the date from the last quarter.

After running the transaction, export the information to an excel file. Use the template and fill with the information extracted. If necessary, use transactions FK03 (vendors) and FD03 (customers) to insert VAT information.

Use the following image as an example:

End of document.