ProcessPreparation of VAT Returns for VAT Withheld from Foreign Vendors

 

You are required to file a separate VAT return for each foreign vendor that you have withheld VAT from. To this end, you follow the process below for each vendor.

Prerequisites

See Customizing for Purchases from Foreign Vendors.

Process

  1. You calculate the total amount of VAT withheld from the vendor.

    To achieve this, proceed as described in Calculating VAT Totals once for each vendor, entering either the target tax code or the tax transfer document type that you have defined for the vendor.

    Save each run for each vendor under a different run ID.

  2. You print out a VAT return for each vendor.

    To do so, for each vendor, proceed as described in Printing VAT Returns. In addition:

    • In the Run ID field, enter the run ID from step 1.

    • In the Sections of VAT Returns to Be Printed group box, select Tax Agent and enter the vendor’s account number.

      Note that the vendor’s account number is only used to read the vendor’s master data. It is not used to read any VAT information. This comes from the run ID.