In Slovakia, you cannot claim back input tax until you have paid the vendor invoice. You do not have to pay the entire invoice, only the tax amount. For example, if a vendor presents you with an invoice for SKK 11,000, including input tax at SKK 1,000, you can only claim back the tax once you have paid the vendor at least SKK 1,000.

You define separate tax codes for input tax items that you cannot yet claim back, and for tax items that you can claim back (see "Periodic Processing" below).

You define the report dates and the G/L accounts that are to be considered, in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings ® Tax on Sales/Purchases ® Basic Settings ® Slovakia ® ….

Similarly, you define separate G/L accounts for recording input tax that you cannot yet claim back, and for tax items that you can claim back.

Whenever you enter any documents including input tax (for example, vendor invoices), you post the input tax items using a tax code reserved for deferred tax purposes. The system automatically posts the tax to a G/L account specially for deferred tax.

When you want to prepare a VAT return, you run the Deferred Tax program. The program checks each input tax item to see whether you have paid it. It then creates a batch input session that:

• Assigns a new tax code to the tax items
• Transfers the tax items to a standard G/L account for input tax

SAP Note 493728