Data Registration for a JPK_VAT File with the Declaration

Polish Localization enables you to register and prepare data for the JPK_VAT file with the declaration.

Entering VAT Registration NO. (NIP)

In connection with the requirements on the integration of Business Central with government databases and related requirements on the presentation of the VAT registration number, its important to check the database setup for VAT registration numbers including the codes of countries where companies were assigned such numbers.

For integration purposes, the PL prefix and the empty prefix are treated in the same way. However, for the purposes of reporting VAT entries, the VAT registration number is used together with the code of the origin country where the VAT registration number was assigned. This applies to the number set on the document when the document is posted.

For European Union countries, the VAT Registration No. prefix should be entered on cards in the VAT Reg. No. Origin Country Code field while the VAT registration number - in the VAT Registration No. field. For non-European Union countries, the prefix together with the VAT registration number should be entered in the VAT Registration No. field.

The VAT Registration No. field is automatically filled with NONE, if the field is empty and if the system setup permits posting a given transaction without a VAT registration number. This feature responds to the requirement on how data should be presented in the JPK VAT file. This value is filled in only in the VAT Entry table.

Reporting External Document Numbers in the JPK_VAT File

It is required to report external purchase document numbers in the JPK_VAT file. However, as such numbers may exceed the maximum length of 35 characters that is allowed in the system, a feature has been prepared to facilitate the entry of external document numbers. If you enter a number that is too long in the Vendor Invoice No., Vendor Cr. Memo No. or External Document No., the user will be asked to select the part of the number that will be used in functionalities other than JPK_VAT. To report transactions in the JPK_VAT file, the complete document number will be used. For purposes other than reporting transactions in the JPK_VAT file, you can use the first part of the entire number, the last one or another, freely defined. The selected option will be remembered and suggested when a similar case occurs for a given vendor.

Note

Standard actions on the purchase invoice page, i.e. the Correct and Cancel actions, result in automated posting of the purchase credit memo without the possibility of entering the external document number assigned to a given document. In Polish Localization, these actions have been extended with a feature for entering an external SAFT number before posting the document that has been corrected.

Marking Corrections due to the Bad Debt Relief

The requirement to mark corrections for a bad debt relief is based on Art. 89a sec. 1 and 4, and Art. 89b sec. 1 i 4 of the the Value Added Tax Act.

Changing VAT Transaction Type

To prepare a correction for a bad debt relief requires additional setup for domestic transaction. To define required settings:

1. Choose the icon, enter VAT Business Posting Groups, and then select a related link.

2. On the ribbon on theVAT Business Posting Groups choose Actions, Change VAT Transaction Type.

3. The dialog box appears and it shows a question Do you want to change the VAT Transaction Type on VAT Business Posting Group?, select Domestic for New VAT Transaction Type, and Yes.

As a result, the Domestic entry is created in the VAT Transaction Type column for a VAT business posting group that was set for domestic customers and vendors.

Setting up Corrections for Bad Debt Relief

You must create a new VAT product posting group (with the Full VAT option set in VAT Calculation Type) that is to be used for posting corrections due to the relief for bad debts. You must also set the combination with the VAT business posting group (with the selected the Domestic option in the VAT Transaction Type field). For sales and output tax correction (decreasing or increasing),you must create a VAT product posting group must for each VAT rate. For purchase and input tax correction, you must create separate VAT product posting groups for the decreasing correction and the increasing correction respectively.

Note

For a sales transaction, you can use the VAT product posting group for sales for both the corrections that increase and decrease the output tax. It can also be used for a purchase transaction if the correction decreases the amount of the input tax. If the correction increases the input tax, you must create a separate VAT product posting group.

On the SAFT VAT Elements Calculation Setup page, choose the Update action to insert new lines with settings. Assign values to the settings as appropriate:

1. A correction that decreases and increases the output tax:
   • Sales VAT Base Element Name - depends on the tax rate K_15, K_17 or K_19.
   • Sales VAT Amount Element Name - depends on the tax rate K_16, K_18 or K_20.
2. A correction that decreases the input tax:
   • Purch. VAT Base Element - K_46
3. A correction that decreases the input (purchase) tax:
   • Purch. VAT Amount Element - K_47

Note

If the VAT product posting group is set for decreasing correction of the output tax due to the bad debt relief (Art. 89a sec. 1 and 4 ), you should create another line with the Duplicate action. In this line, assign the K_68 value in the Sales VAT Base Element Name and the K_69 value in the Sales VAT Amount Element Name. Values from these fields are not transferred to the JPK_VAT file, they are technical fields.

Posting a Correction

A Correction that Decreases the Sales (Output) Tax

1. Choose the icon, enter General Journals, and then select a related link.
2. On the General Journal page that opens create a separate line. Fill in the journal lines:

• • Posting Date - Specify the posting date of the correction due to the bad debt relief.
• • VAT Settlement Date - Specify the date in the period on which the JPK_VAT file with the declaration is submitted.
• Account Type - Specify the account type as G/L Account.
• Account No. - Specify the G/L account number that is set as Sales VAT Account on the VAT Posting Setup page.
• Gen. Posting Type - Specify the type as Sales.
• Bal. Account Type - Specify tha balancing account type as G/L Account.
• Bal. Account No. - Specify the general ledger account number to which the corrected tax amount is to be reposted.
• VAT Product Posting Group - Specify the VAT product posting that is to be used for this type pf the correction and tax rate.
• Bad Debt Relief Corr. Type - Specify the correction type as Decreasing.
• Bad Debt Rel. Source Entry No. - Specify the entry number for the corrected document from the Vendor Ledger Entries list page for domestic transactions for which the correction amount due to bad debt relief (PLN) is less than or equal to 0. After you select the Entry No. reply to the following question: Do you want to copy the document and contractor data from the source document? If you confirm with yes,contactor data and the document are copied to a journal line.
• SAFT Due Date - Specify the due date that is copied from the source invoice.
• Amount - Specify the tax correction amount (PLN) (positive value).
• VAT Base Amount - Specify the amount of the tax correction base (PLN) (positive value).

3. For the journal line, assign the VAT Attribute - KOREKTAPODSTAWYOPODT.
4. Post the journal line.

A Correction that Increases the Sales (Output) Tax

1. Choose the icon, enter General Journals, and then select a related link.
2. On the General Journal page that opens create a separate line. Fill in the journal lines:

• Posting Date - Specify the posting date of the correction due to the bad debt relief.
• • VAT Settlement Date - Specify the date in the period on which the JPK_VAT file with the declaration is submitted.
• Account Type - Specify the account type as G/L Account.
• Account Number - Specify a general ledger account number that was set as Sales VAT Account on the VAT Posting Setup page.
• Gen. Posting Type - Specify the type as Sales.
• Bal. Account Type - Specify that balancing account type as G/L Account.
• Bal. Account No. - Specify the general ledger account number to which the corrected tax amount is to be reposted.
• VAT Product Posting Group - Specify the VAT product posting that is to be used for this type pf the correction and tax rate.
• Bad Debt Relief Corr. Type - Specify the correction type as Increasing.
• Bad Debt Rel. Source Entry No. - Specify the entry number for the corrected document from the Customer Ledger Entries list page for domestic transactions for which the Bad Debt Rel. Corr. Amt. (LCY) is bigger than 0. After you select the Entry No. reply to the following question: *Do you want to copy the document and contractor data from the source document? If you confirm with yes, contactor data and the document are copied to a journal line.
• SAFT Payment Date - Specify the date of payment of the amount due.
• Amount - Specify the tax correction amount (PLN) (negative value).
• VAT Base Amount - Specify the amount of the tax correction base (PLN) (negative value).

3. For the journal line, assign the VAT Attribute - KOREKTAPODSTAWYOPODT.
4. Post the journal line.

A Correction that Decreases the Purchase (Input) Tax

1. Choose the icon, enter General Journals, and then select a related link.
2. On the General Journal page that opens create a separate line. Fill in the journal lines:

• Posting Date - Specify the posting date of the correction due to the bad debt relief.
• VAT Settlement Date - Specify the date in the period on which the JPK_VAT file with the declaration is submitted.
• Account Type - Specify the account type as G/L Account.
• Account No. - Specify the G/L account number that is set as Purchase VAT Account on the VAT Posting Setup page.
• Gen. Posting Type - Specify the type as Purchase.
• Bal. Account Type - Specify tha balancing account type as G/L Account.
• Bal. Account No. - Specify the general ledger account number to which the corrected tax amount is to be reposted.
• VAT Product Posting Group - Specify the VAT product posting that is to be used for this type pf the correction and tax rate.
• Bad Debt Relief Corr. Type - Specify the correction type as Decreasing.
• Bad Debt Rel. Source Entry No. - Specify the entry number for the corrected document from the Vendor Ledger Entries list page for domestic transactions for which the Bad Debt Rel. Corr. Amt. (LCY) is bigger or equal to 0. After you select the Entry No. reply to the following question: Do you want to copy the document and contractor data from the source document?. If you confirm with yes,contactor data and the document are copied to a journal line.
• SAFT Due Date - Leave the field blank.
• Amount - Specify the tax correction amount (PLN) (negative value).
• VAT Base Amount - Specify the amount of the tax correction base (PLN) (negative value).

3. Post the journal line.

A Correction that Increases the Purchas (Intput) Tax

1. Choose the icon, enter General Journals, and then select a related link.
2. On the General Journal page that opens create a separate line. Fill in the journal lines:

• Posting Date - Specifies the posting date of the correction due to the bad debt relief.
• VAT Settlement Date - Specify the date in the period on which the JPK_VAT file with the declaration is submitted.
• Account Type - Specify the account type as G/L Account.
• Account No. - Specify the G/L account number that is set as Purchase VAT Account on the VAT Posting Setup page.
• Gen. Posting Type - Specify the type as Purchase.
• Bal. Account Type - Specify tha balancing account type as G/L Account.
• Bal. Account No. - Specify the general ledger account number to which the corrected tax amount is to be reposted.
• VAT Product Posting Group - Specify the VAT product posting that is to be used for this type pf the correction and tax rate.
• Bad Debt Relief Corr. Type - Specify the correction type as Increasing.
• Bad Debt Rel. Source Entry No. - Specify the entry number for the corrected document from the Vendor Ledger Entry list page for domestic transactions for which the Bad Debt Rel. Corr. Amt. (LCY) is less than 0. After you select the Entry No. reply to the following question: *Do you want to copy the document and contractor data from the source document? If you confirm with yes,contactor data and the document are copied to a journal line.
• SAFT Payment Date - Leave the field blank.
• Amount - Specify the tax correction amount (PLN) (positive value).
• VAT Base Amount - Specify the amount of the tax correction base (PLN) (positive value).

3. Post the journal line.

Note

To allow you to control the VAT base and the VAT amount that can be adjusted due to a bad debt relief, the Vendor Ledger Entries and Cust. Ledger Entries tables have been extended with the VAT Base and VAT Amount fields. The values in these fields are calculated as amounts excluding the adjustments for a bad debt relief and are based only on the entries that are not marked as Skip in VAT Register and as Postponed VAT. The Bad Debt Relief Corr. Amount (LCY) field that shows the current value of the adjusted tax has also been added.