Tax Invoices for Output VAT/Input VAT 

Reporting Output Tax

In Korea, tax invoices must be issued when goods are sold. These tax invoices are printed in a mandatory format and must contain data about the issuing business place and the receiving business place. The goods sold have to be described and the transaction and tax amount have to be listed. A list of the tax invoice issued is required by the tax authorities.

At the end of a three month period, a list of all issued tax invoices is created for each business place and sent to the tax office that has jurisdiction over the business place.

See Tax Invoice how to create the mandatory tax invoice.

The report RFUMSV45 enables you to create the mandatory list of taxable transactions for every customer business place. The report states for each customer business place the total number of transactions, the total of the transaction amount and the total of output VAT which has been posted resulting from these transactions.

Start this report using the standard report tree FIGL, which contains all Korean specific VAT reports, or by choosing System ® Services ® Reporting.

Enter the business place for which you want to report on. Enter the tax codes you used for normal VAT transactions in the select option of the same name. The reporting date you enter in the bottom of the selection screen is printed on the output list.

During the posting of an invoice, the VAT number or the social ID number is transferred to the reference key 3 field of the customer line item.

If the report encounters a transaction, which it is unable to list because there is no available VAT registration number or a social ID number in the reference key 3 (XREF3) field of customer line item, then this document is displayed in an error list at the end of the list. With a double click on the error line, you can drill down to the document or to the customer master record to analyze the error.

Set the check box for tax invoices if you wish to select the data from tax invoices. For this selection you have to enter the document type for the tax invoice (e.g. customize TI for tax invoices).

Set the check box for FI-Invoices if you wish to select the data from FI-Invoices. The difference between tax invoice and FI-Invoice is explained in Tax Invoice.

To get the list of the tax transaction in a legal format set the flag 'create list'.

Reporting Input VAT

Incoming tax invoices are posted in invoice verification in the MM module, or if you do not use the MM module, they are posted as accounting documents in the FI module. Incoming tax invoices should be indicated by using special tax codes. This way they can be distinguished from other transactions. If you look at the list of tax codes created for Korea, you see that special tax codes have been created for the posting of tax invoices received.

To create the mandatory list of tax invoices received, execute the report RFUMSV45. This report is created for input VAT and output VAT. In the selection screen, set the flag for input tax, select the reporting period, the tax codes to report and so on. The report then lists all the documents posted within the selected period and posted using the selected tax codes.

It can happen that an employee (or another natural person) is buying for the company. This is the case an employee just buys some business related stuff in the name of the company and gets a tax invoice from the vendor. E.g. a gift as entertainment expenses for 3rd party. In this case posting must be made like following:

Invoice:

1) DR: Expense Account CR: Vendor (also one-time)

Input VAT

Transfer posting:

2) DR: Vendor (also one-time) CR: Employee

The input VAT would be reported correctly because the report selects the data from the Vendor master data and the payment is made to the employee.

To get the list of the tax transaction in a legal format set the flag 'create list'.

Input and Output VAT on Tape or Diskette

The VAT summary can also be created on a file. To produce this file, execute the report RFUMSV45 with the selection-options 'create file'. You can produce this file in the file system of your operating system or download it to your local front end. For further information about file format, please refer to the online documentation of the report.

For the selection by tax invoices or FI-Invoices (output tax) please, refer to above.

If the system can not display documents due to a missing VAT registration number stored in the master record or any other problem, then the documents are displayed in an error list on the screen. With a double click on the error line, you can drill down to the document or to the master record and correct this error.

VAT Advance Return Statement

To prepare the quarterly VAT advance return statement, use the report standard RFUMSV00. This report has been enhanced by the business place functionality for Korea. For each business place (mandatory entry field for Korean Company Codes), this report creates a list for the total amount and the tax amount of the documents posted with each tax code. Optionally, you can create a list displaying all individual documents posted with each tax code. Enter the desired posting period, the range of tax codes, and the business place code.