VAT Summary Report 

Use

At the end of each quarter, you are required to prepare VAT summary lists and present them to your district tax office. The lists show all of the vendors and customers that you have traded with over the quarter. For each, it states what the total business volume was in South Korean won, and how much VAT was charged.

You have to prepare two summary lists, one based on all of the normal tax invoices that you have posted, and one based on the exempt tax invoices that you have posted. You can submit them as a printout or as a data medium exchange (DME) file.

You can create the summary lists with the VAT Summary Report. To access the program, on the SAP Easy Access screen, choose Accounting ® Financial Accounting ® General Ledger ® Reporting ® Tax Reporting ® Korea ® Summary Reports ® Tax Invoice Summary Report.

Prerequisites

In order to make sure that you only report each tax invoice once, you must time-stamp all of the invoices that you want to include in the summary lists. Then, when you come to prepare the lists, enter the time and date from the time stamp in the appropriate fields on the program selection screen. The program then only reads those tax invoices.

Features

Different Returns for Different Tax Invoice Types

You use the program to prepare separate summary lists for the two different invoice types, normal tax invoices and exempt tax invoices. The only difference between the two returns is how the lists are laid out. Both are in the format approved by the National Tax Service.

When you prepare an output tax return, specify which tax invoice type you want to prepare the report for. The program then selects all tax invoices that you have posted as such.

Input tax returns are based on the incoming invoices that you have entered. To prepare a summary list for your exempt tax invoices, specify the tax codes that you use to post zero-rated input tax. For a list of normal tax invoices, specify all of the appropriate tax codes.

Accounting Documents or Tax Invoices

Normally the program creates the output tax summary list on the basis of the tax invoices that you have posted. However, if you do not use the SAP system functions for tax invoices, it allows you to create summary lists from commercial invoices (that is, normal accounting documents). In that case, the report reads all accounting documents with VAT items posted between the dates you specify. If you do use the tax invoice functions, the report only reads those accounting documents that you have created a tax invoice from.

Note that if you only want the report to include tax invoices from certain dates, you enter the dates in the Tax Invoice Date fields; for accounting documents, use the Document Date field instead.

Input and Output Tax Lists

You can choose whether to create the summary lists for input tax or output tax or both, by selecting the appropriate indicators on the selection screen.

The input tax list lists all of your vendors. For each vendor, it shows the total tax base of all the purchases that you made and the total VAT that they charged you.

Similarly, the output tax list lists all of your customers, and shows the total tax base of all the sales that you made and the total VAT that you charged them. This list also shows how many customers are trading under their representatives' personal identification number and how many are trading under their VAT registration number (ID transactions, VAT transactions). The program distinguishes between the different types of transactions on the basis of whether or not you have entered a VAT registration number in the customer master data.

Goods Movements Between Business Places

For the report to cover tax invoices for goods movements between business places, enter the clearing account in the Clearing Acct Bet. Bus. Places field.

Output Lists and DME Files

When you want to submit the summary lists to the district tax office, you can either print it out or save it as a DME file. Both are in the formats prescribed by the National Tax Service.

The detailed summary list follows the same format, but also lists all of the commercial invoices (and tax invoices) that were involved. You can use this list to control and check the list before you prepare the final report. To display an individual document, you can double-click it.

Activities

Run the report to create the detailed summary list. Any errors are displayed at the foot of the list. Double-click the documents in the error list and correct them.

When you are satisfied that everything is correct, run the report again, this time creating the normal summary list. Print it out or save it to file. Run it once for normal tax invoices and once for exempt tax invoices.