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 RtR-BO (change RtR-BO) of the operations made by Solvay entities in Belgium. 

For any general questions with respect to the Belgian VAT compliance requirements, please refer to the general VAT / Intrastat compliance manual for Belgium. 

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. 

Delloite will send to Local Accountants request for VAT & Intrastat checks applied.

All this flow will respect deadlines proposed in section 1.2. 

RtR-BO(change RtR-BO) 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

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:

Please go to the following path in order to open the respective company file under name "BE VAT return template" (link to the file) from M-1: 
M:\RtR BO (change RtR-BO) Countries - BeNeLux\07 - General\Intrastat e VAT\Belgium\01 - VAT (update the path and link it)

3.1. Responsibilities

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

• Remark 1: Note that the due date for the June return is extended to the 10th of August, whereas the July return should only be filed by the 10th of September. The exact filing due date for the respective returns is communicated every year via a press communication. Note that VAT payments have to be performed however by the 20th day of the month following the taxable period.
• Remark 2: An advance payment has to be paid once a year on the VAT due for the month of December. 

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 4 (change point)). 

• Company Code: This field must be chosen according to the table in point 4 (change point);
• 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 4 (change point).

Remark: 
Only one run per day in "program run date" is possible. 
In case of error "This run ID has already been used for this run date; reselect" change the "Program run date". 

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 4 (change point)): 

Remarks:

• Program run date: The run date must be equal to the one used in S_ALR_87012357;
• Additional run ID: Follow the description in the table in point 4 (change point);
• Txs on Sale / Pur Grp: This field must be choose according to the table in point 4 (change point);
• Company Code: This field must be chosen according to the table in point 4 (change point).

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: 

  

Go to SAP toolbar and choose "{_}Goto  List Display"{_}. 
Then go to _"System  Save  Local File{_}".
Finally save the file with the "unconverted" format. 
Open the file saved in your desktop, select all (Ctrl+A) and copy paste it to cell A1 in sheet "SP01 – Input" of VAT Return file. 


2) Flag the line of the "Spool no." and choose "print with changed parameters": 

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, with exception of company 0001 and 0005, will have only one company in this field:
  • Tx Sales Group 0001 includes companies (0001, 5649 and 5697)
  • Tx Sales Group 0005 includes companies (0005, 6070, 6233 and 6234)

• 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. 
Attention: for sales organizations (for example 0001-5697-5649) it is necessary to extract one excel file per company but, only one XML file.

1) Extract in excel format: 

 
Attention: for sales organizations (for example 0001-5697-5649) it is necessary to extract one excel file per company. So you click on "BACK" and a new company code inside the same sales organization will appear, and due to this, it is necessary to extract in excel once again. 
Copy and paste the report in XLS to sheet "S_ALR_87012402 ESL Input" of the return calculation. If your company has more than one sales organization join all the files in one. 

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;

Complete the totals in the file "BE VAT return template" (see Reconciliation tab sheet) (link it). In case of inconsistencies, please refer to steps 3 to 5 of the ESL compliance process table. 

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 reworking.
• If no changes are necessary, the reviewed package will be forwarded to the local accountants in Belgium 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, in order to confirm receipt of the package and get back a copy of the submitted ESL return for archiving. 

The ESL return filing, in principle, is done in Belgium by the local accountant. 

The created XML file (under point 3.3.2.) is also uploaded by the local accountant 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. 

In case of errors: 
IS Team should be contacted (create a FAS-Connect) in order to update a VAT table with tax code missing in first report containing tables. Local Accounting team should be informed. 


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%, please inform the Country Specialists.

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 

3.4.4. I archive the reports in SAP and in Teamsite (change Teamsite)

All the files must be sent to the Country Specialists in a ZIP file and also uploaded into teamsite (change teamsite) for archiving in: 
SBS team site  Deliver Financial Services   TIMETABLE > Vat + Intrastat Global project  Belgium (update the path and link it)

3.4.5. I follow-up the country specialists task (please confirm the title)

Once the above steps are completed, the VAT return can be considered as finalized. 

The package should be sent to the Country Specialists for review. 

• If no changes are necessary, the reviewed package will be forwarded to the local accountant in Belgium 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 VAT return, he / she will proceed with the filing of the return and perform any VAT payment due. 

Follow up with the local accountant to confirm receipt of the package and get back a copy of the submitted VAT return for archiving. 
The VAT return filing will in principle be done in Belgium by the local accountant. 

NOTE: The VAT returns should be filed electronically via the INTERVAT tool. A digital signature is needed to do so. 
Conditions and modalities to register and use this tool can be found on the official website of the Belgian Finance Ministry at the following address: 
http://www.minfin.fgov.be (e-services: Intervat/Edivat). (update the link, give a name and link it)

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.