Procedure documentationGenerating XML Files for Periodic VAT Returns

 

Use this Luxembourg-specific procedure for extracting the data necessary for your periodic VAT Return and generating and downloading an XML file that meets the legal specifications of the tax authorities.

Procedure

Data Extraction

  1. Open the Advance Return for Tax on Sales/Purchases (RFUMSV00) program, which collects the base amounts and VAT amounts.

    On the SAP Easy Access screen, choose Start of the navigation path Accounting Next navigation step Financial Accounting Next navigation step General Ledger Next navigation step Reporting Next navigation step Tax Reports Next navigation step General Next navigation step Advance Return for Tax on Sales/Purchases End of the navigation path. Alternatively, use the S_ALR_87012357 transaction.

  2. Enter the company code, for which you want to prepare the return, in the Company code field. Alternatively, enter a tax on sales/purchases group in the Further selections group box.

  3. Enter the posting dates.

  4. On the Output control tab, select the Total by debit/credit check box.

  5. On the Posting parameters tab, in the Electronic Advance Tax Return group box, select the Electronic Advance Return check box.

  6. Execute the program.

    The system prepares the data for the periodic VAT return and saves it to the database in the Tax Declaration Items (FOTTDCLITM) table. An output list is created with an overview of all postings for the VAT return in the selected period.

Creation of XML File for Electronic VAT Return

  1. Open the Administration Report Electronic Data Transmission to Authorities (FOT_B2A_ADMIN) program.

    On the SAP Easy Access screen, choose Start of the navigation path Accounting Next navigation step Financial Accounting Next navigation step General Ledger Next navigation step Reporting Next navigation step Electronic Communication with Authorities Next navigation step Administration Report Data Transmission End of the navigation path. Alternatively, use the FOTV transaction.

  2. On the Administration Report Electronic Data Transmission to Authorities selection screen, in the Data for Return group box, enter 0001 - Electronic Advance Return for Tax on Sales/Purchases as the return type.

  3. Enter LU as the reporting country.

  4. In the Data for Reporting Per. group box, in the Rep. Year field, enter the year to which the reporting period belongs. Note that you can restrict the selection further by entering a particular reporting period or company code.

  5. Execute the program.

    On the results screen, the system displays all data that was extracted by the RFUMSV00 program for different periods in the reporting year.

  6. Select the data to be included in the XML file for the current periodic VAT return by placing the cursor on the line and clicking the Select this Entry to Transfer (Select this Entry to Transfer) button.

    The selected line is highlighted yellow.

  7. Click the Display Details on Package (Display Details on Package).

    The system displays a detailed view of the data extracted for this periodic VAT return. The following elements are shown:

    • Reporting Country-Spec. Parameter Texts: Show the details for the agent, declarer and software vendor as defined in your Customizing

    • Item ID: Shows the corresponding VAT box in the periodic VAT return

    • Amount System: Shows the amounts automatically extracted by the system using the RFUMSV00 program

    • External Amount: Shows amounts manually entered by an SAP user (see step 4 in the “Generation and Download of the XML File” section)

    • Reporting Amount: Shows the sum of the amounts extracted by the system and external amounts

    • Crcy: local currency (EUR)

    • Tax Type: V stands for input tax and A for output tax

    • Base: If an X is displayed, the amount refers to a base amount. If no X is displayed, the amount is the tax amount

    Note that the amounts are represented with the sign that is assigned to the corresponding postings in your SAP system: negative amounts refer to credits while positive amounts refer to debits. However, the following has been taken into consideration for the reporting of the amounts in the boxes of the VAT return:

    • The amount in the SAP system is a positive value and should be reported as a positive amount. For example, an input tax amount and its base amount related to invoices are positive (+) amounts in your SAP system, and, as these amounts refer to invoices, they should be reported as positive values.

    • The amount in the SAP system is a negative value but according to legal requirements, the amount should be reported as a positive value. For example, an output tax amount and its base amount related to invoices are credit (-) amounts in your SAP system, but as these amounts refer to invoices, they need to be reported as positive values.

    • The amount in the SAP system is represented with a positive value although this amount has to be reported as a negative value. For example, an output tax amount and its base amount related to credit notes are positive (+) amounts in your SAP system, but as these amounts refer to credit notes, they need to be reported as negative values.

    • The amount in the SAP system is a negative value that should be reported as a negative value. For example, an input tax amount and its base amount related to credit notes are negative (-) amounts in your SAP system, and, as these amounts refer to credit notes, they need indeed to be reported as a negative value.

    As a result, the system must react as follows:

    • For all tax and base amounts related to output tax, the sign of these amounts is switched, from negative to positive and inversely, when they are included in the XML file.

    • For all tax and base amounts related to input tax, the sign of these amounts remains the same, for the transfer to the XML file.

  8. You can either go back to the previous screen and generate the XML file or make changes to the amounts.

Add, Remove or Change Amounts

  • To change an amount, place your cursor on the line to be changed and click on the Change Tax Amounts (Change Tax Amounts) button. In the dialog box that appears, change the amount and click Okay (Okay). The system includes this new amount in the XML file.

  • To add an amount, click on the Add ID (Add ID) button.

  • To remove an amount from the VAT return, put the cursor on the line that needs to be deleted and click on the Delete ID (Delete ID) button.

  • For some VAT boxes, you may have to manually enter the values. To make these manual entries, without placing your cursor on the line for an Item ID, click on the Add ID (Add ID) button. Enter the corresponding values for the ID, amount, tax type and tax base amount, and click Okay (Okay). The system displays this new item ID (= VAT box) and amount in the detailed results.

Generation and Download of the XML File

  1. Go back to the overview screen.

  2. Click on the Download (Download) button.

    A dialog box with the following options is displayed: Create XML or Show log.

  3. If you choose Show log, the system displays the log for the validation checks specified by the tax authorities. When you upload the XML file to the portal of the tax authorities, these checks are also carried out. If any of them failed, the file would be rejected. Therefore, the same checks are done in the SAP system when the XML file is generated. If the checks run successfully, the results are not included in the log. Only warnings are listed for checks that could not be completed successfully. Note these warnings do not prevent file creation. Note that the validation rules that include a multiplication are executed at the level of the unit, not at the level of the decimals.

  4. If you choose Create XML, the system displays a dialog box that allows you to make a selection for the VAT accounting scheme. Click the relevant button.

    The system displays the XML file.

  5. Check the XML file content. Note that if a tag must be filled and the system found no amount during extraction, the system fills these tags in the XML file with zero (0) as the amount. This is also the case for VAT boxes whose amounts are calculated by the system. If they are not filled during extraction, the system fills the tags in the XML file with zero (0) as the amount.

  6. Go back to the previous screen.

    The system displays a dialog box that allows you to download the file from the application server to your local PC

  7. Click the Download Now button.

    The download is done using the Electronic Tax Returns - Copy DME File to PC (RFALSDPC) program. The system displays the selection screen for this program.

  8. Enter the data related to the target file and execute the program.

    The XML file is downloaded to the selected drive, directory and file. You can now import the saved file to the eTVA-application from the tax authorities in Luxembourg.