VAT Reporting for Italy

ERP CLOUD
Oracle Financials for EMEA

Table of Contents

1. Purpose of this document ............................................................................................................................................... 3

2. Assumptions and Prerequisites....................................................................................................................................... 4
3. Common Setup ............................................................................................................................................................... 5
Tax Reporting Configuration ............................................................................................................................................... 5
Tax Regime ...................................................................................................................................................................... 5
Legal Reporting Unit Tax Registration............................................................................................................................. 6
Tax Reporting Configuration Setup ................................................................................................................................. 7
Tax Registers ................................................................................................................................................................... 8
Tax ..................................................................................................................................................................................... 11
4. Specific Setup ................................................................................................................................................................ 12
Tax Reporting Types and Codes ........................................................................................................................................ 12
Tax Rates ........................................................................................................................................................................... 13
Tax Determining Factors Usage ........................................................................................................................................ 15
Classification Categories ............................................................................................................................................... 15
Party Fiscal Classifications ............................................................................................................................................. 16
Transaction-Based Fiscal Classifications ....................................................................................................................... 17
Third-Party Tax Profiles ..................................................................................................................................................... 17
Tax Rules ........................................................................................................................................................................... 18
Taxable Basis Rule ......................................................................................................................................................... 18
Tax Rate Rules ............................................................................................................................................................... 19
5. Transaction Entry in Payables ....................................................................................................................................... 21
Sequencing: Voucher Number .......................................................................................................................................... 21
Specific Invoices Entry....................................................................................................................................................... 22
 Invoices with the deferred tax .......................................................................................................................................... 24
Validating, Accounting and Posting .................................................................................................................................. 24
6. Transaction Entry in Receivables .................................................................................................................................. 25
Sequencing: Document Number ....................................................................................................................................... 25
Transactions with the deferred tax ................................................................................................................................... 26
Completing, Accounting and Posting ................................................................................................................................ 27
7. Reporting....................................................................................................................................................................... 28
Business Flow Summary .................................................................................................................................................... 28
Selection Process .............................................................................................................................................................. 29
Subledgers activity reporting ............................................................................................................................................ 29
Purchase VAT Register for Italy ..................................................................................................................................... 30
Payables Sales VAT Register (Self Invoices, EEC VAT) for Italy...................................................................................... 33
Receivables Sales VAT Register for Italy ....................................................................................................................... 34
Declarable tax activity reporting ....................................................................................................................................... 36
Declarable Input VAT Register for Italy ......................................................................................................................... 36
Declarable Output VAT Register for Italy ...................................................................................................................... 37
VAT Liquidation Report for Italy.................................................................................................................................... 39
Finalize Transactions for Tax Reporting ............................................................................................................................ 40
Declarable tax activity reporting restrictions and recommendations of Usage ............................................................... 42
Review periods statuses and reprint reports .................................................................................................................... 44
1. Purpose of this document

This document explains the implementation and usage guide lines for the following two subsets of VAT reports
for Italy:

The subset of the reports categorized as subledger (Payables/Receivables) activity reporting is to support
periodic VAT reporting in Italy and includes the following reports:
- Purchase VAT Register for Italy
- Payables Sales VAT Register (Self Invoices, Inter-EU VAT) for Italy
- Receivables Sales VAT Register for Italy
The objective of these reports is to show all invoicing activity - to list all invoices issued/received in a given period,
irrespective of when the tax is declarable to the tax authorities.
These reports are legal and are provided to the tax authorities upon request.

This subset of reports categorized as declarable tax activity reporting is to support periodic VAT liquidation in
Italy and includes the following reports:
- Declarable Input VAT Register for Italy
- Declarable Output VAT Register for
- VAT liquidation Report for Italy
VAT liquidation is VAT calculation and settlement with the tax authorities.
The VAT Liquidation Report for Italy is not a legal report. It is a supporting report for the VAT Liquidation calculation.
It allows users to calculate the VAT due or VAT Credit at the end of the period.
Declarable Input and Output VAT Registers are not legal, but are required to support VAT Liquidation audit.

The document explains the pre-requisite setup, important transaction entry aspects, report output details and
the business flow.
2. Assumptions and Prerequisites
In this document, the following entities are assumed to have already been set up:

 Data Security – Refer to the Fusion Security topical essay available on cloud.oracle.com
 Geographies
 Enterprise Structure
 Tax Regime to Rate setup
 Tax Party Profiles
 Tax Rules
 Suppliers
 Customers
 Procurement Business Function
 Common Options for Oracle Payables and Oracle Receivables
It is recommended that the ‘Implementation Project’ is complete for your organization before commencing the ‘Feature
Specific Setup’ outlined below. If you require further details, refer to the Analyze and Report section of Oracle Financials
Cloud (Get Started) web site.
3. Common Setup
The setup for Italy can be conditionally divided in two major parts: common setup and specific setup. The common
setup pertains to the entire VAT reporting for Italy.

Common Implementation Steps:

1 Tax Reporting Configuration
1.1 Tax Regime
1.2 Legal Reporting Unit Tax Registration
1.3 Tax Reporting Configuration Setup
1.4 Tax Registers
2 Tax

Tax Reporting Configuration

Define the Tax Reporting Configuration to start using the VAT Reports for Italy.

The Tax Reporting Configuration determines a reporting configuration based on the Tax Registration Number (TRN)
defined for Legal Reporting Unit tax registration and is a basis for country-specific tax reporting in Fusion. This
configuration is referred to as the Tax Reporting Entity. Each Tax Reporting Entity is uniquely identified by entity
identifier and is a combination of the Legal Entity, Tax Registration Number and Tax Regime.

Tax Regime
Task name: Manage Tax Regimes

Navigation: Navigator –> Setup and Maintenance -> Manage Tax Regimes

Enable ‘Use tax reporting configuration’ check box at the Tax Regime level. This enables the ‘Tax Reporting
Configuration’ tab on the Create/Edit Legal Reporting Unit Tax Registration page.
Legal Reporting Unit Tax Registration
Task name: Manage Tax Registrations

Navigation: Navigator –> Setup and Maintenance -> Manage Tax Registrations-> Search for: Legal Reporting Unit Tax
Profile ->Tax Registrations

Tax Reporting Configuration is a part of the Legal Reporting Unit Tax Registration setup flow.

Create legal reporting unit tax registration with the Registration Number. Tax Registration Number is a mandatory
component of the Tax Reporting Configuration. When the Registration Number is entered the Tax Reporting
Configuration tab becomes enabled.
Tax Reporting Configuration Setup
Task name: Manage Tax Registrations

Navigation: Tax Reporting Configuration tab -> Common Configuration tab

To create the Tax Reporting Configuration:

 Enter Tax Calendar. You define the tax calendar as standard accounting calendar using Manage Accounting
Calendars page.
It is recommended to have distinct calendars for Accounting and Tax. The Tax Calendar must not have
adjustment periods. If the Accounting Calendar includes adjustment periods or if the frequency is different,
(for example, monthly accounting versus quarterly Tax) then the calendars must be distinct.
 Enable tax registers. VAT Reporting for Italy is based on the tax registers. You must define at least one tax
register when you enable this checkbox.
Tax Registers
Task name: Manage Tax Registrations

Navigation: Tax Reporting Configuration -> Tax Registers tab

To associate Tax Registers you have to define previously Document Sequences (see Sequencing by Legal Entity or Ledger
Topical Essay for the details on how to setup document sequencing).

Associate tax registers with the Tax Reporting Configuration. You must assign at least one document sequence to each
tax register.
For example, if the Purchase VAT Register for Italy should be run for tax register that includes Standard Invoices, Credit
Memos, Debit Memos and Prepayment Invoices and these documents are sequenced with the same sequence then
define the tax register and assign the sequence defined for Standard Invoices, Credit Memos, Debit Memos and
Prepayment Invoices.

There are five seeded tax register types intended to run the following reports:
 Tax Register Type Report
Purchase VAT Purchase VAT Register for Italy
Sales VAT Receivables Sales VAT Registers for Italy
Sales (Self Invoice and EU VAT) Payables Sales VAT Register (Self Invoice and EU VAT) for Italy
Purchase VAT Register for Italy
Declarable Input VAT Declarable Input VAT Register for Italy
Declarable Output VAT Declarable Output VAT Register for Italy

When you run a report for a specific register, the report logic checks document sequence name associated with this
register and reports only transactions sequenced with this document sequence.

Only sequenced transactions, for which the sequences are assigned to tax registers, are reported in VAT reports for
Italy.

All Tax Registers of types Declarable Input VAT and Declarable Output VAT are included into the VAT Liquidation report
and form VAT due.

If you do not want particular transactions be included into the VAT due result calculation then use a separate sequence
for these transactions and do not assign this sequence to tax registers of types Declarable Input VAT or Declarable
Output VAT. Assign this sequence to tax registers of types Purchase VAT or Sales VAT, or Sales (Self Invoice and EU VAT)
depending on your reporting needs.

For example: Split Payments are invoices to Public Departments where tax is paid by the Department directly to Tax
Authorities, therefore it is not to be included into calculation of VAT due. Use separate sequence for such invoices and
do not assign this sequence to any tax registers of type Declarable Output VAT. You can assign this sequence to the tax
register of type Sales VAT specifically created for such invoices or to any common tax register of type Sales VAT together
with other sequences.

To report multiple transaction types in the same tax register you can:

- Assign multiple transaction types to separate sequences

- Assign each sequence to the same tax register
Or
- Assign multiple transaction types to a single sequence
- Assign this sequence to the tax register

To report transaction types in separate tax registers you can:

- Assign transaction types to separate sequences

- Assign these sequences to separate tax registers

To exclude transaction types from tax registers you can:

- Use specific sequences for the transaction types to be excluded

- Do not assign these sequences to any tax registers

Create one tax register for each tax register type you intend to use.

For example, create tax register for ‘Registro IVA CEE Vendite 2008’ for Intra-EU invoices to run the Payables Sales VAT
Register (Self Invoice and EU VAT) for Italy for the period in the year 2008:
Create the following tax registers (with the corresponding tax register types) to report on Intra-EU VAT properly
(Separate tax register must be created to report on self-assessed tax liability as output VAT):

Tax Register Name Tax Register Type Sequence To be reported in the report
assignment
example
Registro IVA CEE Sales (self invoice IT ACQ CEE - Payable Sales VAT Register for Self Invoices,
Vendite 2008 and EU VAT) 2008 Intra-EU VAT
- Purchase VAT Register for Italy
Declarable Registro IVA Declarable input IT ACQ CEE - Declarable Input VAT Register for Italy
CEE Acquisti 2008 VAT 2008 - VAT Liquidation Report for Italy (Input VAT
part of the report)
Declarable Registro Declarable output IT ACQ CEE - Declarable Output VAT Register for Italy
Self-assessed 2008 VAT 2008 - VAT Liquidation Report for Italy (Output VAT
part of the report)
For example, define tax register ‘Registro Bolle Doganali 2008’ for custom invoices to run Purchase VAT Register for Italy
for the period in the year 2008:
Tax
Task name: Manage Taxes

Navigation: Navigator –> Setup and Maintenance -> Manage Taxes

Assign seeded tax reporting type REPORTING_STATUS_TRACKING with ‘Yes’ indicator at Tax level.

Based on this tax reporting type all generated tax lines are initially stamped as not finally reported yet.
4. Specific Setup

The specific setup pertains to VAT processing and reporting of specific documents like Customs Bills and Self Invoices.

Specific Implementation Steps: For Customs Bill For Self Invoice

1 Specific Tax Rates Yes Yes
2 Tax Determining Factors – define based on which tax Yes Yes
determining factor(s) the specific tax rates are applied to a
transaction.
2.1 Classification Categories Yes
2.2 Party Fiscal Classifications Yes
2.3 Transaction-Based Fiscal Classifications Yes
3 Third-Party Tax Profile Yes Yes
3.1 Create a specific Supplier Customs Dummy supplier for the
self invoices
3.2 Create Tax Registration for party or party site level. Yes Yes
3.3 Enable offset taxes for party or party site level. Yes
3.4 Assign a party fiscal classification at party or party site CUSTOMS
level.
4 Tax Rate Rule to apply specific tax rates
4.1 Create Taxable Basis Rule to use Assessable Value Yes
instead of standard taxable basis formula.
4.2 Create Tax Rate Rule to apply a specific tax rate to a Yes Yes
transaction.

Tax Reporting Types and Codes

Task name: Manage Tax Reporting Types

Navigation: Navigator –> Setup and Maintenance -> Manage Tax Reporting Types

Tax reporting type EMEA_VAT_REPORTING_TYPE is seeded and contains seeded reporting codes ‘SELF INVOICE’ and
‘CUSTOM BILL’ used only for the Italian VAT reports processing. These tax reporting codes are assigned to the specific
tax rate(s) that relate to custom’s invoices and self invoices.
Tax Rates
Task name: Manage Tax Rates and Tax Recovery Rates

Navigation: Navigator –> Setup and Maintenance -> Manage Tax Rates and Tax Recovery Rates->Rate Type should be
‘Tax Rates’

Custom bill is entered in Payables as a specific invoice with zero line Amount and the Assessable Value populated
instead. Therefore such an invoice should be recognized and correctly reported in the Purchase VAT Register for Italy
this is why you must have ‘CUSTOM BILL’ tax reporting code be associated with a specific tax rate.

Define specific tax rate(s) to be applied on the custom invoices and associate the tax reporting code ‘CUSTOM BILL’ to
these tax rate(s). The specific tax rate should be defined for each rate percentage. In the example below ‘IT VAT
CUSTOMS BILL STD RATE’ is defined for rate 20% and is associated ‘CUSTOM BILL’ tax reporting code.

.
Self-invoice is entered in Payables as a specific domestic invoice with offset tax line. Therefore such an invoice should be
recognized and correctly reported in the Payables Sales VAT Register (Self Invoices, Inter-EU VAT) for Italy and Purchase
VAT Register for Italy.

Define specific tax rate(s) to be applied on the self invoices and assign the tax reporting code ‘SELF INVOICE’ to these tax
rate(s).The specific tax rate should be defined for each rate percentage. In the example below ‘IT VAT SELF-INVOICE
RED1 RATE’ is defined for rate 10% and is associated ‘SELF INVOCE’ tax reporting code.

Assign specific offset tax rate code to each specific tax rate.
Tax Determining Factors Usage
Specific tax rates defined above can be applied to transactions based on a variety of different tax determining factors.

It is proposed to apply specific tax rate on customs bills based on Party Fiscal Classification. For example, define party
fiscal classification ‘CUSTOMS’ to classify the supplier Customs for which the customs invoices will be entered.

The same approach can be taken for self invoices. You can define party fiscal classification ‘Self Invoicing’ to classify the
dummy self-invoice supplier for which self-invoices will be entered. However, further materials consider usage of the
Transaction-Based Fiscal Classifications to show different possible option.

You may choose another available determinant(s) to better comply a nature of the transaction.

Classification Categories
Task Name: Manage Classification Categories

Navigation: Navigator –> Setup and Maintenance -> Manage Classification Categories

You create a party fiscal classification by assigning a Trading Community Architecture class category to a party fiscal
classification type code that you define. Classification Codes defined under the Classification Category become fiscal
classification codes belonging to the party fiscal classification type.
Party Fiscal Classifications
Task Name: Manage Party Fiscal Classifications

Navigation: Navigator –> Setup and Maintenance -> Manage Party Fiscal Classifications

Click on the Create icon on the Manage Party Fiscal Classification page and navigate to the Create Party Fiscal
Classification page:

 Enter the Classification Category defined above in the Party Classification field of the page.
 Make sure Fiscal Classification Code ‘CUSTOMS’ has appeared under Additional Information region.
 Enter Fiscal Classification Type Code information.
 Associated the tax regime defined for Italy under Associated Tax Regimes region.
Transaction-Based Fiscal Classifications
Task name: Manage Transaction-Based Fiscal Classifications

Navigation: Navigator –> Setup and Maintenance -> Manage Transaction-Based Fiscal Classifications -> Search for:
Transaction Business Category Code

You can use transaction business categories directly to classify transactions, and use transaction business category codes
as determining factors in tax rules.
To set up a transaction business category code:
 Select your hierarchy view of the transaction business category code path. You can use Tax seeded transaction
business category PURCHASE_TRANSACTION to identify and classify your business self invoice transactions.
 Use the sub-level to navigate to the Create Transaction Business Category Code page. Select
PURCHASE_TRANSACTION and click on the Create Child Node button.
 Enter a transaction business category code and name. For example, create sublevel ‘IT INVOICE TYPE’.
 Select sublevel ‘IT INVOICE TYPE’ and click on the Create Child Node button, enter the transaction business
category code and name for self invoice.

Third-Party Tax Profiles

Task name: Manage Party Tax Profiles

Navigation: Navigator –> Setup and Maintenance -> Manage Party Tax Profile -> Search For: Third-Party Tax Profile or
Third-Party Site Tax Profile

 Create a specific supplier for the Customs.

 Create Tax Registration at party or party site level to make sure the tax is correctly applied.
 Assign party fiscal classification ‘CUSTOMS’ at party or party site level under the Classifications tab.
  Create a specific dummy supplier for the self invoices. This dummy supplier represents your company. You
cannot enter an invoice in Payables without suppler details.
 Create Tax Registration to make sure the tax is correctly applied.
 Enable ‘Allow offset taxes’ flag under the Controls and Defaults tab.

Tax Rules
Task name: Manage Tax Rules

Navigation: Navigator –> Setup and Maintenance -> Manage Tax Rules

To setup specific Tax Rules you have to define the following entities used in these rules:

 Tax Determining Factor Sets

 Tax Condition Sets

Taxable Basis Rule

Navigation: Search For: Transaction Tax, Tax Rule Type: Taxable Basis Rule

Create Taxable Basis Rule to consider for taxable basis the Assessable Value instead of standard taxable basis formula for
purchase transactions with Custom supplier.

If Bill-from party fiscal classification is ‘CUSTOMS’ the tax will be calculated based on the assessable value.
Tax Rate Rules
Navigation: Search For: Transaction Tax, Tax Rule Type: Tax Rate Rule

Create Taxable Rate Rule to apply a specific tax rate on purchase transactions with Custom supplier.

If Bill-from party fiscal classification is ‘CUSTOMS’ then a specific tax rate ‘IT VAT CUSTOMS BILL STD RATE’ is applied.

Create Taxable Rate Rule to apply a specific tax rate on purchase transactions with dummy self-invoice supplier. This rule
considers another tax determining factor. If the Transaction Business Category is ‘Self Invoice’ then a specific tax rate ‘IT
VAT SELF-INVOICE RED1 RATE’ is applied.
5. Transaction Entry in Payables
Task name: Create Invoice

Navigation: Navigator –> Payables Invoices -> Create Invoice

Create an invoice and pay special attention to the following.

Sequencing: Voucher Number

All purchase transactions must be sequenced to be reported in Payables VAT reports for Italy.

A ‘Voucher Number’ must be generated in the ‘Accounting Tab’ section. Voucher Numbers appear on the report output
as ‘Sequence Number’. Setup a gapless document sequence to achieve this. Use proper Document Category to enter
desirable document and get it sequenced in accordance with dedicated sequence.

Example of standard invoices sequencing:

Example of custom invoice sequencing:

Example of self invoice sequencing:

Example of Intra-EU invoice sequencing:

To report on invoices with deferred tax make sure the payments are also sequenced:

Specific Invoices Entry

To enter a customs bill:
 Create a standard invoice for the specific supplier Custom:
 Enter Invoice Amount as the amount resulting from the total amount of the received custom bill.
 Enter Item line with amount 0.00 for the custom value line and enter the custom value amount in the Assessable
Value field.
 Calculate tax and make sure the tax rate has been correctly applied to the tax line.
To enter a self invoice:
 Create a standard invoice for the specific dummy self invoices supplier.
 Enter Transaction Business Category ‘Self Invoice’.
 Calculate Tax and make sure the offset tax line has been generated and the tax rate has been correctly applied
to the tax line.
Invoices with the deferred tax
Make sure the invoices with deferred tax have Tax Point Basis ‘Payment’.

Validating, Accounting and Posting

All Payables transactions must be accounted to appear in VAT reports for Italy. ‘Validate’ the invoice and ‘Account and
Post to Ledger’. Check the validation and accounting status in the Status region.
6. Transaction Entry in Receivables
Task name: Create Transaction

Navigation: Navigator –> Receivables Billing -> Create Transaction

Create a transaction and pay special attention to the following.

Sequencing: Document Number

All AR transactions must be sequenced to be reported in AR VAT reports for Italy.

‘Document Number’ appears on the report output as ‘Sequence Number’. Setup a gapless document sequence to
achieve this.

If you want to report on transactions with deferred tax make sure the receipts are also sequenced and are fully/partially
applied.
Transactions with the deferred tax
Make sure the transactions with deferred tax have Tax Point Basis ‘Payment’.
Completing, Accounting and Posting
All Receivables transactions must be accounted to appear in VAT reports for Italy. ‘Complete’ the transaction and
‘Account and Post to Ledger’. Check the completion and accounting status in the Status region.
7. Reporting

Read the Declarable tax activity reporting restrictions and recommendations of Usage subsection below to correctly
go through the reporting process.

The Process for the VAT Reports for Italy can be summarised as follows:

Business Flow Summary

Selection Process
Navigation: Navigator –> Tools -> Scheduled Processes

The Selection Process is a basic tool to prepare taxable records for further tax reporting.

Each run of the Selection Process is assigned a system generated reporting entity identifier. This reporting identifier
drives all the VAT reports for Italy that are based on this solution.

Select the transactions that you wish to report for the given reporting entity, period and source:

Note: There is no report produced for the ‘Selection Process’.

Subledgers activity reporting

Navigation: Navigator –> Tools -> Scheduled Processes

The following subset of the reports is categorized as subledger (Payables/Receivables) activity reporting:
- Purchase VAT Register for Italy
- Payables Sales VAT Register (Self Invoices, Inter-EU VAT) for Italy
- Receivables Sales VAT Register for Italy
Te objective of these reports is to show all invoicing activity - to list all invoices issued/received in a given period,
irrespective of when the tax is declarable to the tax authorities.

These reports are submitted by the Reporting Identifier (generated by the Selection process), but only to identify
the Tax Calendar and Tax Registers associated with the Tax Reporting Entity. The Purchase and Sales VAT
Registers for Italy report on the transactions which Accounting Dates get into the period they are run for and
which sequences they are sequenced are assigned to the tax register for which registers are run. The transactions
are not driven based on the stamping done by the Selection Process but are driven directly from the related
Payables/Receivables tables. These reports are not based on the Selection Process and Final Process.
Purchase VAT Register for Italy

The Purchase VAT Register for Italy report is to print all invoices which accounting dates get into the period it is run for
and which sequences are assigned to the tax register it is run for.

If you want to report on Standard Invoices, Credit Memo Invoices, Debit Memo Invoices, Prepayments select the tax
register defined for these documents at previous step.

The report represents the Standard Invoices, Credit Memo Invoices, Debit Memo Invoices, and Prepayments for the
given period. The output lists all transactions belonging to the period that are validated, accounted, posted and which
sequence ‘IT ACQ STD 2008’ is assigned to the tax register ‘Registro IVA Acquisti 2008’:
If you want to report on Custom Bills select the tax register defined for these documents at previous step:

The report represents the Custom Bill Invoices for the given period. The output lists all transactions belonging to the
period that are validated, accounted, posted and which sequence ‘IT ACQ BD 2008’ is assigned to the tax register
‘Registro Bolle Doganali 2008’:
Payables Sales VAT Register (Self Invoices, EEC VAT) for Italy

The Payables Sales VAT Register for Italy report is to print Intra-EU invoices or self invoices which accounting dates get
into the period it is run for and which sequences are assigned to the tax register it is run for.

If you want to report on Intra-EU invoices select the tax register defined for these documents at previous step:

The report represents the Intra-EU Invoices for the given period. The output lists all transactions belonging to the period
that are validated, accounted, posted and which sequence ‘IT ACQ CEE 2008’ is assigned to the tax register ‘Registro IVA
CEE Vendite 2008’:

If you want to report on self invoices select the tax register defined for these documents at previous step:
The report represents the Self Invoices for the given period. The output lists all transactions belonging to the period that
are validated, accounted, posted and which sequence ‘IT ACQ AUTOF 2008’ is assigned to the tax register ‘Registro
Vendite Autofatture 2008’:

Receivables Sales VAT Register for Italy

The Receivables Sales VAT Register for Italy report is to print all transactions which accounting dates get into the period
it is run for and which sequences are assigned to the tax register it is run for.
The report displays the tax and taxable amounts and deferred (for the invoices with deferred tax) tax amounts and
corresponding portions of taxable amounts.
The report represents the transactions for the given period. The output lists all transactions belonging to the period that
are validated, accounted, posted and which sequences ‘IT FAI 2008’, ‘IT NCI 2008’, ‘IT DM 2008’ are assigned to the tax
register ‘Registro IVA Vendite 2008’:
Declarable tax activity reporting
Navigation: Navigator –> Tools -> Scheduled Processes

The following subset of the reports is categorized as declarable tax activity reporting.
- Declarable Input VAT Register for Italy
- Declarable Output VAT Register for Italy
- VAT Liquidation Report for Italy
These reports are to support periodic VAT liquidation in Italy (VAT calculation and settlement with the tax authorities).
The calculation requirement is supported by the VAT Liquidation Report for Italy. Other two reports are to support VAT
liquidation audit. Reporting on transactions is based on the Tax Point Basis, Tax Point Date and Reportable Flag
determined by the users’ setup and stamped on the tax lines by Tax product.
In general, these reports are to report on all reportable transactions which Tax Point Dates get into the period they are
run for and which sequences they are sequenced are assigned to the tax register they are run for.

Finally close an initial tax reporting period to have a proper preliminary reporting in the declarable tax activity
reports. See the Declarable tax activity reporting restrictions and recommendations of Usage subsection below.

This subset of the reports work in accordance with the following business flow:
- Run the Selection Process that stamps transactions for further reporting and generates the Reporting Identifier
used for the reports submission and Final Process.
- Run preliminary versions of the declarable tax activity reports.
- Run Finalize Transactions for Tax Reporting process that stamps selected transactions as finally reported.
- Run final version of the declarable tax activity reports. These are the reports runs after the Finalize
Transactions for Tax Reporting process.
You must run the final version of the VAT Liquidation for Italy. That provides the correct carry
forward of the VAT Credit to the next period.
- Reprint final version of the declarable tax activity reports if required.

Declarable Input VAT Register for Italy

The Declarable Input VAT Register for Italy is to print all reportable tax events in P2P which Tax Point Dates get into the
period it is run for and which sequences are assigned to the tax register it is run for.
The report represents the transactions for the given period. The output lists all transactions belonging to the period that
are validated, accounted, posted and which sequences are assigned to the tax register ‘Declarable Input VAT Register
2008’.

Invoices with the deferred tax (such invoices have the Tax Point Basis ‘Payment’) are reported only if fully or partially
paid, the only paid part of the deferred tax is reported. These invoices are reported with the following references to the
corresponding payment document:
 Payment Date is shown in the 'Applied Document Date' column;
 Payment Number is shown in the 'Applied Document Number’ column.

Declarable Output VAT Register for Italy

The Declarable Output VAT Register for Italy is to print all reportable tax events in O2C which tax point dates get into the
period it is run for and which sequences are assigned to the tax register it is run for. You can also report on the self-
assessed tax arisen on purchase invoices by running for a specific tax register.
The report represents the transactions for the given period. The output lists all transactions belonging to the period that
are validated, accounted, posted and which sequences are assigned to the tax register ‘Declarable Output VAT Register
2008’.

Transactions with the deferred tax (such transactions have the Tax Point Basis ‘Payment’) are reported only if fully or
partially paid, the only paid part of the deferred tax is reported. These transactions are reported with the following
references to the corresponding payment document:
 Receipt Date is shown in the 'Applied Document Date' column;
 Receipt Number is shown in the 'Applied Document Number’ column.
VAT Liquidation Report for Italy

The VAT Liquidation Report for Italy is to print summary information for all reportable tax events which tax point dates
get into the period it is run for.
Finalize Transactions for Tax Reporting
Navigation: Navigator –> Tools -> Scheduled Processes

The Tax Final Reporting Process marks the tax records (on lines and distributions levels) as finally reported and
closes the Tax Calendar Period. Any modification of the finally reported record is not allowed.

The Tax Final Reporting Process is used to get the final version of the tax reports. The first run of the declarable tax
activity reports for Italy after the Final Process is considered to be a final reporting. Final version of the report is
supposed to be submitted to tax authorities.
Before proceeding to running the ‘Tax Final Reporting Process’, it is important to review declarable tax activity reports
for Italy that were previously run. If there are transactions that you expect to be reported that aren’t in the reports, you
may need to check the setup or enter missing transactions and re-run the Selection Process.

Note: There is no report produced for the ‘Final Process’.

Declarable tax activity reporting restrictions and recommendations of Usage

1. Finally close an initial tax reporting period: In order to have a proper preliminary reporting in the declarable tax
activity reports it is recommended either to finally close preceding 'blank' period or to accurately close the first
reporting period. Blank period is the period preceding the first reporting period. For example, if you start
working from JAN-15, use one of the following recommended approaches.
a. 'Blank' period approach
i. Run Select Transactions for Tax Reporting process for DEC-14 for both sources.
ii. Run Finalize Transactions for Tax Reporting process for DEC-14 for both sources.
b. First reporting period approach
i. Run Select Transactions for Tax Reporting process for JAN-15 for both sources.
ii. Run preliminary declarable tax activity reports for JAN-15 and make sure everything is correct.
iii. Run Finalize Transactions for Tax Reporting process for JAN-15 for both source.
iv. Run final version of the declarable tax activity reports for Italy.
It is not allowed to report on the periods that are earlier than the first finally closed period.

2. Do not change the reporting context: The entire reporting process including Final for all reporting levels (Legal
Entity, Ledger, TRN) in parallel is not supported. Choose the required reporting level for final reporting and use it
for final closing of your initial period (considered above). All subsequent periods must be closed for the same
reporting level.

For example, the most commonly used reporting level is Legal Entity, using ‘blank’ period approach the following
should be done:
i. Run Select Transactions for Tax Reporting process for Reporting Level ‘Legal Entity’, for Tax Calendar
Period ‘DEC-14’ and for both sources. The reporting entity identifier is generated. It is based on the
Legal Entity.
ii. Run Finalize Transactions for Tax Reporting process for the this reporting entity identifier, for Tax
Calendar Period ‘DEC-14’ and for both sources.
iii. For final reporting run all processes and reports for all subsequent periods only for this reporting entity
identifier.

In context of this restriction and within the VAT Group configuration the final reporting on both individual legal
entity and the VAT Group (Reporting Level is ‘Tax Registration Number’) is not possible. Therefore you must
decide to finally report on either individual members of the VAT Group or on the whole VAT Group.

3. Do not change the period types: The entire reporting process including Final for different period types
(example: month, quarter) in parallel is not supported. Choose the required period type for final reporting and
use it for final closing of your initial period (considered above). All subsequent periods must be closed for the
same period type.

4. Preliminary reporting for any period: If the first reporting period has been correctly closed (for example, DEC-14
and then JAN-15), then run the Select Transactions for Tax Reporting process consecutively for each period (FEB-
15, MAR-15, ... , DEC-15, etc.). The reporting for each period is done for the transactions that have tax point
dates falling in the reporting period. It is possible to run preliminary reporting scattered within multiple periods
without Finalize Transactions for Tax Reporting process and even to have gaps, for example:
 i. Run the Select Transactions for Tax Reporting process and declarable tax activity reports for Italy for
FEB-15: the reports will have only transactions with tax point dates in FEB-15.
ii. No running Select Transactions for Tax Reporting process in MAR-15.
iii. Run the Select Transactions for Tax Reporting process and declarable tax activity reports for APR-15: the
reports will have only transactions with tax point dates in APR-15.

5. Final reporting in chronological order without gaps: Final closing of the periods must be done consecutively.
The next period that can be closed in the above example is FEB-15. No gaps are allowed in between finally close
periods. As soon as a you decide to run Finalize Transactions for Tax Reporting process for the period, the whole
set of processes and reports must be run:
i. Run the Select Transactions for Tax Reporting process for FEB-15.
ii. Run preliminary declarable tax activity reports for Italy for FEB-15 and make sure everything is correct.
iii. Run Finalize Transactions for Tax Reporting process for FEB-15 for both source.
iv. Run final version of the declarable tax activity reports for Italy for FEB-15.

6. Correction transactions: Always run the whole set of processes and reports before running the Finalize
Transactions for Tax Reporting process. You should re-run the Select Transactions for Tax Reporting process and
ensure all expected data are shown in the report. In the above example, you may work in APR-15, but still enter
some transactions with tax point date in JAN-15, which is already finally closed. These so called correction
transactions are picked by the Select Transactions for Tax Reporting process in the following open period, which
is FEB-15. Therefore before final close of FEB-15 you must re-run the Select Transactions for Tax Reporting
process for FEB-15, otherwise you may lose the correction transactions.

7. Further reporting of the already finally closed period: Running the Select Transactions for Tax Reporting
process for finally closed period is not allowed and will be completed with an error.

8. Cancellations and modifications of the finally reported transactions: Do not cancel or modify transactions
finally reported to tax authorities. Enter separate correcting transactions, as for example Credit Memos, in the
subsequently open periods to adjust or offset the original finally reported transactions. Use the preliminary
reporting to identify erroneous transactions and cancel or modify them before the final reporting.
Review periods statuses and reprint reports
Navigation: Navigator –> General Accounting -> Financial Reporting Center -> Transaction Tax Report History

Using Transaction Tax Report History UI you can do the following for the given reporting entity and period:

 Review the period(s) for which the Final Process has already been run
 Review the report and tax register finally reported
 Reprint finally reported reports
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