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 RtR-BO (change RtR-BO) 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(change RtR-BO) must request refund form. In case of payment position RtR-BO(change RtR-BO) must request a payment position form. 
After VAT Return is accomplished, RtR-BO(change 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(change 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 (confirm)of this. 

RtR-BO (change 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:

* Solvay Chemie BV (company code 0294) and Solvay Chemicals Plastic Holding BV (company code 5997) are in a fiscal unit according to the Dutch law. In order to prepare the different returns for this fiscal unit, the returns are first prepared per entity (i.e. Solvay Chemie BV and Solvay Chemicals Plastic Holding BV). 

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.

In the table below information regarding company codes and respective variants code in the several SAP transactions that need to be run to prepare the data:

3.2.1. I calculate the VAT return

3.2.1.1. S_I run the SAALR_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. 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. European Sales and Purchase Listing – ESL

3.2.2.1. 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" 

Note: 
It's important to double check the IC numbers and the respective amounts are equal between both reports. 

3.2.2.3. 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. 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". 

End of document.