Oracle R12 – EMEA Vat Reporting
In order to submit a VAT return or indeed any indirect fiscal tax reports a Tax (VAT) Registration Number (TRN) is needed to submit the reports. Because VAT reporting is based on a TRN number and a TRN can only belong to one legal entity, it cannot span across multiple legal entities or ledgers.
So why do we have the EMEA VAT Reporting functionality when the ability to run the Financial Tax register already exists?
• Report VAT based on the tax registration number associated with the legal establishment.
• Tax calendars can be used meaning that the VAT can be reported monthly, bi-monthly or quarterly even if the GL periods are of a 4-4-5 or 1-31st design.
• We can choose what taxes are reported based on set up linked to the tax itself. So an environmental tax that uses the same rules and conditions are a VAT tax can be excluded from the reporting.
• The intention of the selection process is to allow the data to be extracted for any point in time without it changing as more transactions are being added. The selection process can be run as many times as needed until the Tax Group are happy that the data they have is accurate before freezing these transactions to report them in the VAT returns.
• Once run in Final mode, the transactions are locked down and no more changes can be made for that tax reporting period’s data. This is intentional as it ensures 100% accuracy with the transactions being reported. It also means that if the selected data has been run in final mode then any transactions entered after this, even for the same month are captured in the following Tax period. This means that any and all corrections and new entries done in the existing or prior periods will still automatically be picked up in the open (chronologically first available as Not Closed) tax period.
• For some countries like Italy, Localisations applied allow for separate sequential document numbering control for tax transactions using the VAT registers.
• Marks each transaction reported to the authorities with information identifying the submission period and date and if all the changes to an invoice are made on that invoice then a full audit trail is maintained.
• Retain tax transaction history without affecting the performance of the current tax reporting processes.
Before the EMEA VAT selection Process or related reports can be run, there are several pre-requisites that need to be completed.