Tasks to be completed when documenting an operation (from creation to publication)

 1. Enter the Title of the operation / page

2. Add the following Labels : 

    • Scope of applicability: ww, country_accounting 

    • Country or group of countries (if applicable): belux, china, france, italy, lam, nam, uk_ie, bulgaria, dach, netherlands, iberia, poland, latvia, australia, india, japan, south_korea, thailand, singapore, new_zealand, emea_transversal, apac_transversal

    • Unit and Domain according to the List of labels to be used in the Finance Service Line space

      • E.g. 1: WW Operation in Financial Accounting under domain "Central Finance Processes & Compliance":
        • Labels to be used: ww, financial_accounting, central_fin_proc_compliance

      • E.g. 2: France Operation in Financial Accounting:
        • Labels to be used: country_accounting, france, financial_accounting
          (for country operations, the Domain is always country_accounting)


3. Fill in all fields as described above

4. Name the title of each section using OPD methodology naming convention - Infinitive verb without the “to”, mainly action verb...something) - " I do something..."

5. Once the description of the operation is completed, ensure it is approved and published by launching the SBS-Finance approval workflow 




Domain: Country Accounting



Responsibility area: N/A


Table of contents 

By default the table of contents displays Heading 1 & Heading 2 (other levels can be added)



Scope

3. Remove the icon when not applicable


ERP

4. Remove the icon(s) when not applicable


Frequency

5. Remove the icon(s) when not applicable

 

 

 (to be filled!)(error)

References

6. Add the link to SAP transaction(s) (when it exists)

S_ALR_87012357; F.01; FS10N; FBL3N


Forms

7. Insert the links accordingly and change the link text with the OP nam


Attachments

8. Add the link to attachments or external links



Previous OP << >> Next OP




1. Objective and Scope

1.1. Objective of this Operation

The VAT reporting obligations in scope for the United Kingdom are the following:

  • VAT return - Quarterly
  • ESL - Monthly
  • Intrastat (Arrivals and Dispatches) - Monthly

The ESL and the Intrastat are described in specific procedures.
This procedure is to be used by RtR (change RtR)(error) as a step-by-step guideline to report the VAT related to the operations made by Solvay entities in United Kingdom.

1.2. Scope

The entities for which RtR (change RtR)(error) is responsible for the preparation of the VAT in the United Kingdom are the following:

Company Code & Name

VAT n°

Foreign VAT n°

 

 

Quarters

0240 Solvay Interox Limited 
4265 Solvay UK Holding Company Limited

GB582237729

 

 

1st Dec to Feb 
2nd Mar to May 
3rd Jun to Aug 
4th Sep to Nov

 

0005 SCI BE

GB805023377

 

Yes in GB 

 

 


2. Definitions

See Finance Glossary:

  • ESL - EC Sales lists which are used to collect information on all sales from UK VAT registered traders to VAT registered traders in other EU Member States
  • Intrastat


3. Tasks description

3.1. Periodicity

RtR (change RtR)(error): 'VAT return excel file' should be sent till the 10th working date of the period through a Freshdesk ticket. 

Local Accountants will apply final validation and ensure the electronic filling and payment. Copy of the submitted VAT return will be addressed to RtR (change RtR)(error) for archiving.

3.2. I calculate the VAT return

The procedure starts by extracting the quarterly data from SAP PF1 system The figures will be pasted into the 'VAT return excel file'.
In the file, besides the sheet with automatic links that calculate the quarterly figures, there's a sheet with a reconciliation to be done by RtR (change RtR)(error).



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



  • Kerry Kan (kerry.kan@solvay.com): responsible for review / approval

  • Beryl Mason (beryl.mason@solvay.com): alternative contact 

3.2.1. I extract the SAP reports

Tcode: S_ALR_87012357

Variants:


Variants for UK (0240&4265&5872) in GBP

 

 

STEP 1

OUTPUT

UK OUTPUT VAT

STEP 2

OUTPUT

UK OUTPUT EA

STEP 3

OUTPUT

UK OUTPUT EE

STEP 4

INPUT

UK INPUT VAT

STEP 5

INPUT

UK OUTPUT EQ

Variants for BE (SCI 0005) in GBP

 

 

STEP 1

OUTPUT

SCIOUTPUTVATGB

STEP 2

OUTPUT

SCIOUTPUTEAGBP

STEP 3

OUTPUT

SCIOUTPUTEEGBP

STEP 4

INPUT

SCIINPUTVATGBP

STEP 5

INPUT

SCIOUTPUTEQGBP

Variants for BE (SCI 0005) in EUR

 

 

STEP 1

OUTPUT

SCIOUTPUTVATER

STEP 2

OUTPUT

SCIOUTPUTEAEUR

STEP 3

OUTPUT

SCIOUTPUTEEEUR

STEP 4

INPUT

SCIINPUTVATEUR

STEP 5

INPUT

SCIOUTPUTEQEUR


For BE, the transaction will run 10 times (5 for GBP currency figures and another 5 for EUR figures).

For UK the transaction will only run 5 times (as only GBP figures are necessary). 


After selecting the variant, enter the appropriate posting date to determine the reporting period.

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Example for UK: 

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Check Posting parameters – should be {Do not update documents}: 

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Save the files with names that allow you to keep track of what they include.

3.2.2. I fill in VAT report file

Pick up the 'VAT return excel file' used for last quarter data at google drive folder: 2.8 C-IBUKIT. (please link to the file. Upload the file in AOdocs?)(error)

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For UK there will be only one file. For BE there will be 2 files (one in EUR and other in GBP). Save the file updating the reporting period in its name.

Examples: (missing something?)(error)

Each file contains several sheets. Consider the following:

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Replace in each one of the 5 'step' sheets, the data from the 5 files obtained from the 5 variants based on valid VAT Tax Codes. 
Example:

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Then go to sheet "VAT RETURN" and check the cells highlighted in yellow.
Make sure they are picking up the correct figures from each 'step' sheet.
The figure to pick up from each 'step' sheet is the total. 
Consider the colour coding to help you look for the right 'step' sheet. 
The colour used in the 'VAT RETUN' (return?)(error) sheet cells is the same used to identify each 'step' sheet.

Example: the sheet "Step5" is coloured purple. Therefore its total figures, for 'Tax base amount and 'Balance', are to be reported in the lines coloured purple in the sheet "VAT return":  (missing something?)(error)

The figures from sheet "VAT RETURN" fill in a draft for the VAT return declaration in the sheet 'Final VAT return':

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3.2.3. I perform the VAT return reconciliation (please confirm the title)(error)

3.2.3.1. File: VAT UK

The reconciliation for UK is made in GBP; BE is made in EUR with comparison to GBP for FX rate validation.

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Update the date and the accounts balance (open items at the end of quarter).
Check if the 'Current month VAT payment' matches the figure from sheet 'Final VAT return'. 
Comes from VAT RETURN tab.

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TCode: F.01
Variant: UK VAT RETURN
Choose Special evaluation tab to select quarterly reporting period.

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Consider the accounts according to companies as follows:
Accounts for UK:

  • VAT Receivable: 2411030044 
  • VAT payable: 2451030044
  • VAT centralization: 2451040000
  • VAT centralization: 2411040000

Then reconcile the accounts open balances with the ''Current month VAT payment'. Occasionally, there are items to reclaim VAT, they could be found in account 2451040044 / 2411040044 and should be included in the VAT return template as well. 
Check if manual adjustments need to include the following (check to be done only for UK):

  • Deferred (import)- certificate VAT C79: In VAT account, 2451040000 (using SAP transaction FS10N or FBL3N – G/L display balances, with open items until the last day of current quarter); filter the document type G2 and check if the documents have PDF documents attached; report the amounts retrieved from G2 documents only if they have PDF documents attached (on Excel file VAT template for UK) in cell I24 of the tab "VAT return";
  • Reclaimable VAT on bad debts (very rare); 
  • VAT reclaimed on pension scheme payments; in Vat account 2451040000 for document type M1 or R1 with text "Mercer VAT rec"; include the total amount (on Excel file VAT template for UK) in cell J24 of the tab "VAT return"; cell J36 will be automatically computed. 

Tip: To find the outstanding items do clear the difference: look in the accounts' open items:

  • TCode: FBL3N
    • Account: 2451040000
    • Check for: Doc type: M1 – pension fund payments; G1 – Duty Refund, and all Assignments DEFER VAT etc.
    • This items will combine as manual adjustment that should be included in VAT return and VAT reconciliation. 

worddav7423c7222592b3baf7c72407c2901eee.png

3.2.3.2. VAT UK BE GBP

Accounts for BE:

  • VAT centralization GB: 2451040044 
  • VAT centralization GB: 2411040044 

Please, follow reconciliation instruction tab to process data validation. 
Reconciliation of BE on file - VAT UK BE GBP - will represent last quarterly amount to be paid to authorities, based on advance monthly payments made in this period . 

Tip: In case of struggle to find the 'outstanding items', go see past reconciliations for ideas and patterns. 

3.3. I send data to local accountants

The files should now be sent to the Local Accountants thought (through?)(error) a Freshdesk for review. 
The ESL figures should be sent in the same email, please follow 'OP ESL United Kingdom' (remove OP?)(error) in order to obtain the ESL files. 
Follow up with the local contact person to confirm the package receipt. 
Request a copy of the submitted VAT return for archiving, as well the ESL declaration. 
Till you receive these documents it is advised not to close the case but to pending.

Examples: 

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3.4. I upload the files in google drive

When the VAT and the ESL declarations of submission are received, make upload into designated location for archiving. (link to the location?)(error)


End of document.