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 BE 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 Belgium are the following:

• VAT return
• ESL – European Sales Listing
• ASL – Annual Sales Listing

This VAT OP compliance process manual is to be used as a step-by-step guideline to facilitate the VAT reporting by VAT SU team of the operations made by Solvay entities in Belgium. 

During VAT Return Calculation (done at D+3) in case of doubt Accounting Platform must contact the SU FA . In the sequence of this procedure VAT ledger will be reconciled defining the VAT position (payment/refund). 

After prepared, the VAT Return is submitted by electronic filling. 

All this flow will respect deadlines proposed in section 1.2. 

SU FA must send to local accounting team:

1. VAT return excel file;
2. SP01 (original format - PDF);
3. Advance Return of Tax on Sales/Purchase (PDF & excel format);
4. ESL (excel file per company & XML format);

1.2. Scope

The entities for which SBS will be responsible for the preparation of the VAT and Intrastat compliance in Belgium are listed below:

2. Definitions

See Finance Glossary:

• ASL
• ESL
• IS

3. Tasks description

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.

In the table below information regarding company codes or sales organizations (when more than one company is involved with the same VAT number) and respective variants code in the several SAP transactions that need to be run in order to prepare the data, VAT number and extra information for SAP:

3.1. Responsibilities

After all the returns are submitted, SU FA Indirect VAT send an email to each CAM with proofs of submission.

3.2. I perform the VAT return calculation

3.2.1. I run the transaction S_ALR_87012357 – Advance Return for Tax on Sales/Purchase

Run S_ALR_87012357 and insert variant pick variant from point 3

• Company Code: This field must be chosen according to the table in point 3
• Fiscal Year: Fiscal year of the VAT month that you are reporting;
• Posting Date: First day of the previous month until last day of the previous month;
• Txs on Sale / Pur Grp: This field must be chosen according to the table in point above;
• Program run date: Select the current day (Important: in case you need to re-run the program you must select a different date);
• Identification: Follow the description in the table in point 3

Select "Yes" for test run and the outcome: 

It is necessary also to extract in PDF and to archive. 

Edit the text field with "Advance Return XXXX MM/YYYY", where "XXXX" is the company code, "MM" is the month and "YYYY" is the year: 

 

It is also necessary to extract this information in to excel. 

3.2.2. I run the transaction S_ALR_87012370 – Print: Advance Return for Tax on Sales/Purchase

Run S_ALR_87012370 and insert variant (pick variant from point 3

Execute and insert in Output Device "ZPDF" and Print: 

The outcome will be: 

3.2.3. I run the transaction SP01 – Output controller: Spool

Go to SP01 transaction:

 
Search for the script ZPDF and click in the SAPscript: 

 

Two [2] extractions must be done: 

1. one for being used in the excel of the VAT Return,
2. and another one, for archiving purpose.

1) In the outcome select: 

Insert "ZPDF" in Output Device and archive (edit the Text with "VAT XXXX MM/YYYY" where "XXXX" is the company code, "MM" is the month and "YYYY" is the year): 

Finally, click on Print and the "Output requests created". Pick the file that you will receive in the e-mail and attach to the posting. 

3.2.4. I run the transaction S_ALR_87012050 – Assets Acquisitions

Run S_ALR_87012050 and insert variant (pick variant from point 4 (change point)).

• Company Code: All variants will have only one company in this field
• Asset Number: Use the range of asset numbers described above (the objective is to exclude participations);
• Report Date: Last day of the previous month;
• Depreciation area: Use depreciation area 01;
• Sort Variant: 0013 - Only company totals;
• Posting date: 1^st day of the previous month until last day of the previous month;

The outcome must be exported to excel in MHTML format and copy to excel file for VAT return in sheet "S_ALR_87012050 Input" Cell A1. 

After pasting we must convert to number. 

3.2.5. I run the transaction S_ALR_87012359 – Additional list for Advance Return for Tax on Sales/Purchase

Run transaction S_ALR_87012359 to reconcile tax codes used in S_ALR_87012357. 
Insert variant (pick variant from point 4 (change point)). 

 

The outcome of the transaction must be extracted and copied to VAT Return excel file in sheet "S_ALR_87012359 Input". 

 

Extract the outcome to excel in "spreadsheet" format and copy the information to excel file of VAT Return in sheet "S_ALR_87012359 Input" cell A1: Go to toolbar and choose _"List  Export  Local file"_ 

3.3. I prepare the ESL report

3.3.1. I run the transaction S_ALR_87012402 – Run SAP ledgers

Run transaction S_ALR_87012402 - EC Sales List (Belgium) and enter variant:

And Execute. 

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 [2] digits on column "VAT Registration No." and guarantee that none is a BE code or non-Europe country. Check the codes in OBY6. Note that this amendment will also have an impact on the VAT return. 
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 VAT Return file in cell AE5 of sheet "reconciliation". 

3.3.2. I extract the SAP reports

It is necessary to extract two [2] reports: one in excel and another in XML format. 

1) Extract in excel format: 

2) Extract in XML format: 

Click "XML", choose download and save the file under the name "ESL XXXX MM-YYYY". 
Both reports must be sent to local accounting team together with VAT Return file. 
Please check if the header text of ESL - that is related with company code information (Name, Address, etc.) - is correct. If not please, send a FAS-Connect.

3.3.3. I verify 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;

After all errors are corrected, submission of ESL is made by VAT SU.

The created XML file (under point 3.3.2.) is also uploaded by VAT SU into the INTERVAT tool (i.e. software to file the ESL return). 

3.4. I perform the quality checks

The checks that need to be done are: 

• Check Tax Codes
• Check Accounts
• Check VAT = ESL

3.4.1. I check SAP and VAT return

Check box 71 and 72 with account 2411040032 and 2451040032, because the balance of these accounts should be the amount to pay to VAT administration or to recover. 

VAT Return: 

3.4.2. I check tax codes

The extraction made in point 3.2.5. will automatically compute the figures in excel VAT Return, so it's necessary to see in this excel sheet "Chiffre D'affaires – Check" if we have Deltas between both reports: 

Objective: Comparison of total sales (S_ALR_87012359) with the VAT declared in total (S_ALR_87012357). 
These checks are done automatically in the file "BE VAT return template" and are highlighted in yellow or are included in the "Reconciliation" tab of the above mentioned file. 
Every tax code should be checked with tax codes which are reported within the information extracted with the transaction (S_ALR_87012357). Every tax code should be reported in both documents. 
The draft VAT return will be automatically completed using the Excel VAT return template. 
Note that is important that all the amounts (per column "invoice" and "credit notes") should be reported in positive into the VAT return template in order to create a correct VAT return. 
Verify that the remaining tax codes (i.e. those that are not reported in the Excel file) do not include VAT amounts. If tax codes not included in the Excel file include VAT amounts, please print out the list of invoices and refer to the Country Specialists. 
Reconcile VAT balances from the draft VAT return with the ones from the G/L account. 

The report of S_ALR_87012359 is the detail of companies 0005/6070/6233/6234. Although S_ALR_87012357 only resumes in company 0005, in order to match we need to make a sort by tax code. 

Checks to perform:

• Verify all tax codes with a VAT rate different from the applicable rates in Belgium, i.e. 0%, 6%, 12% and 21%;
• If sales invoices are issued with a rate different from 0%, 6%, 12% or 21%, VAT team will contact Customer Service teams.

3.4.3. I check accounts

The extraction made in point 3.2.5. will automatically compute the figures in excel VAT Return, so it's necessary to see in this excel sheet "Chiffre D'affaires – Check" if we have Deltas between both reports: 

1) VAT must be equal to ESL: 
Box 44 – Box 46 + Box 48 in the VAT Return = Sum ESL report 

2) Services in VAT must be equal to ESL: 
Box 44 = Sum of Service type 1 in ESL report 

To complete the VAT return electronically, the following link should be used: 
http://www.minfin.fgov.be/portail1/fr/intervat/welcomeintervatfr.html (update the link, give a name and link it)

End of document.