Table of Contents

VAT Settlement Date

The functionality of the VAT Settlement Date has been implemented due to Polish legal requirements which permit VAT settlement in a period different from a document posting period.

The VAT Settlement Date functionality has a substantial impact on how the following system components are used:

  • posting sales, purchase and service transactions with the VAT Settlement Date parameter,

  • postponing VAT in sales credit memos,

  • preparing a VAT declaration,

  • calculating and posting VAT,

  • applying VAT amounts against general ledger entries,

Changing a VAT Settlement Date

To set up the processing of VAT settlement date:

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter General Ledger Setup, and then select a related link.

  2. On the General Ledger Setup page on the VAT FastTab, fill in the following fields as needed:

  • Allow VAT Posting From – Specifies the starting date of the period, in which it is allowed to settle the VAT amount from posted transactions. If this field is not filled in, the system does not control the starting date of the VAT settlement period, which can result in the assigning of a VAT amount that is calculated for the transaction being posted to a period which has already been settled.

  • Allow VAT Posting To – Specifies the ending date of the period, in which it is allowed to settle the VAT amount from posted transactions. If this field is not filled in, the system does not control the ending date of the VAT settlement period, and as a result the VAT amount from a transaction being posted can be assigned to a period to be settled in the future.

  • Use Postponed VAT – If you select this field, it will be possible to use the Postponed VAT function.

Note

The Postponed VAT function is used to mark credit sales memos as signed by a recipient.

The General FastTab contains the Print VAT Specification in LCY field. If this field is selected, VAT information is printed in a local currency (PLN) on sales documents.

VAT Period User Setup

After defining the basic settings for the VAT settlement date, you can, like in the standard functionality, set the allowed VAT periods for the allowed posting periods. This means that in addition to the general setup on the General Ledger Setup page, you can define the settings for individual users.

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter User Setup, and then select a related link.

  2. On the User Setup page, fill in the fields that contain the setup for a selected user:

  • Allow VAT Posting From – Specifies the starting date of the period, in which it is allowed to settle the VAT amount from posted transactions. If the field is empty, this means that there is no information about the beginning of the VAT settlement period in the system and there is a risk that VAT from the posted transaction will be assigned to the period that has already been settled.

  • Allow VAT Posting To – Specifies the ending date of the period, in which it is allowed to settle the VAT amount from posted transactions. If the field is empty, this means that there is no information about the end of the VAT settlement period and there is a risk that the VAT amount from the posted transaction will be assigned to the period that will be settled in the future.

Note

If both fields: Allow VAT Posting From and Allow VAT Posting To are empty in the setup line of a selected user on the User Setup page, the system processes the fields as missing settings for a specific VAT period for this user and therefore, it uses the period defined on the General Ledger Setup page for this user.

The settings defined on the User Setup page have a higher priority than the settings defined on the General Ledger Setup page. This means that for selected users VAT periods can be set up (on the User Setup page). These periods can be different from the ones defined for other users (on the General Ledger Setup page).

VAT Periods

The SAF-T VAT functionality uses the settings of VAT periods that are part of the Polish Localization. To create new VAT periods:

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter VAT Period, and then select a related link.

  2. Choose the Create-Update VAT Periods action.

  3. Enter a start date that specifies from when the VAT periods will be created and assign the type of VAT return to be submitted.

As part of the modification regarding SAF-T VAT, changes have been made within the VAT Periods functionality. The following columns have been added on the VAT Periods page:

  • End Date - Specifies the end date of a given VAT period.
  • Declaration Required - Specifies that it is required to attach elements of the VAT declaration to the JPK VAT file.
  • Declaration Period Type - Specifies the VAT declaration type selected by the company for VAT settlements. The available options are Monthly or Quarterly.
  • Declaration Period No. - Specifies the consecutive number of the VAT declaration in a given tax year.

The functions for closing and reopening VAT periods have also been added. Closing the VAT period results in the blocking of transaction posting which also affects the VAT settlement and the change of VAT attributes in a given period.

It happens that the VAT reporting and accounting periods do not match. To facilitate VAT reporting and posting based on VAT periods and creating internal and statutory reports based on accounting periods, the VAT Settlement Date function has been enhanced with the VAT Periods feature.

Postponed VAT

For VAT amounts posted from transactions marked as Postponed VAT, it is necessary to select general ledger accounts and they can be different from the ones to be used for posting standard purchase and sales (input and output) VAT. To select the general ledger accounts that are appropriate for postponed VAT:

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter VAT Posting Setup, and then select a related link.

  2. On the VAT Posting Setup page, select the line with a code combination selected in the VAT Business Posting Group and VAT Product Posting Group fields and then select Edit.

  3. On the VAT Posting Setup Card on the Sales FastTab, fill in the Sales VAT Postponed Account field, and on the Purchases FastTab fill in the following fields: Purchase VAT Postponed Account and Reverse Charge VAT Postponed Account fields. In these fields, you can view the drop down list of general ledger accounts and select the appropriate ones.

Posting with VAT Settlement Date

Purchase

To post purchase, sales and service transactions using the VAT Settlement Date functionality, it should be possible for the user to enter a VAT settlement date in all system windows that contain document headers, journal lines etc.

To post purchase transactions by using the VAT Settlement Date functionality:

  1. Choose theLightbulb that opens the Tell Me feature icon, enter Purchase Invoice, and then select a related link.

  2. On the Purchase Invoice page select New and enter your purchase invoice information.

  3. On the General Fast Tab, the VAT Settlement Date field is automatically entered from the Doc. Receipt Date field. Change the default date in the VAT Settlement Date field into another one.

  4. Create a purchase invoice in a standard way.

  5. Check the VAT settlement date in a posted purchase invoice. Search for Posted Purchase Invoices.

  6. The selected purchase invoice can be displayed as a card.

  7. It is possible to check if VAT settlement dates have been saved on the VAT Entries page. To do this, select Find Entries in a posted purchase invoice, and then select the VAT Entry line and Show Related Entries.

Sales

To post purchase transactions by using the VAT Settlement Date functionality:

  1. Choose Lightbulb that opens the Tell Me feature icon, enter Sales Invoices, and then select a related link.

  2. On the Sales Invoice page select New and enter your purchase invoice information.

  3. On the General FastTab type a value in the Delivery Date/Invoice Period Date Filter field. If the invoice relates to a period (period to which the invoice relates in the cases referred to in Article 19a. sec. 3.1 and sec. 4 and sec. 5. 4 of the act), in the Delivery Date/Invoice Period Date Filter field enter a date filter in the following format: Period Starting Date...Period Ending Date (e.g. 01.01.2023..31.01.23) The initial value of the period is saved in a separate field, and the final value of the invoice period is saved as the date of delivery date and entered in the VAT Settlement field. If necessary, replace the default date in the VAT Settlement Date field.

Note

If the date or date range is correctly recognized and inserted into the appropriate fields, the value in the Delivery/Service Date field or the invoice period date filter is removed when the page is refreshed.

4.. Post the sales invoice in a standard way.

  1. Check the VAT settlement date in a posted sales invoice. Search for Posted Purchase Invoices.

  2. The selected posted sales credit memo can be displayed as a card.

  3. It is possible to check if VAT settlement dates have been saved on the VAT Entries page. To do this, select Find Entries in a posted sales invoice, and then select the VAT Entry line and Show Related Entries.

Note

The VAT Date field is available for editing in the following documents: purchase order, purchase invoice, purchase return order, purchase credit memo, sales order, sales invoice, sales return order, sales credit memo. The VAT Settlement Date field can also be edited in general journal lines and on the VAT Additional Info page.

When a transaction with VAT is posted, the date of the VAT settlement date is recorded in the posted documents: posted purchase invoice, posted purchase credit memo, posted sales invoice, posted sales credit memo. VAT settlement date is also saved in tables: VAT Entry and Detailed VAT Entry.

VAT amounts from various transactions can be settled in a period different from the period used to post the taxable transaction. The settlement period depends on various factors and can be set up in many ways.

  • If the VAT settlement period depends on the due date, the settings defined for unrealized VAT are applied and the VAT amount can be posted on separate accounts.

  • If the VAT settlement period is known while the transaction is being posted, the VAT settlement period can be selected simultaneously by selecting the appropriate VAT settlement date which has to be different from the posting date.

  • If, for any reason, the VAT settlement period is not known while the taxable transaction is being posted, the postponed VAT functionality can be used and the VAT amount can be posted on a separate G/L account. These rules apply to a standard VAT and reverse charge VAT. On the VAT Posting Setup Card page, for each combination of the VAT Business Posting Group and VAT Product Posting Group fields, it is possible to assign separate general ledger accounts for postponed and unrealized VAT postings. It also applies to the reverse charge VAT, which can also be posted as postponed on unrealized.

  • If the VAT is postponed and unrealized at the same time, it is necessary to apply it in a right sequence. First, the postponed VAT should be applied (by using the Realize Postponed VAT function which is run in the VAT Application Worksheet page), and then the unrealized VAT should be applied (by applying receivables or payables against payments). For VAT maintenance purposes, Polish Localization has been enhanced with security tools that prevent any other sequence for VAT application.

  • If a reverse charge amount is postponed and unrealized at the same time, the aforementioned rules should be used. If a currency exchange difference has appeared in a reverse charge, the difference can be posted after the postponed and unrealized VAT is applied.

Postponed VAT (Marking Signed Sales Credit Memos)

The Postponed VAT feature is used every time the VAT amount is to be suspended as it is not possible to apply it at a given time.

The Postponed VAT feature is particularly useful for handling sales credit memos. Under Polish law, it is possible to deduct a VAT amount from a sales credit memo only upon the customer’s confirmation of sales credit memo receipt. Therefore, it is necessary to postpone the deduction of the VAT amount to the period between the date when the sales credit memo was issued and the date when the customer confirmed the receipt of the sales credit memo.

The Postponed VAT functionality will be described on the basis of sales credit notes, but it can be used in the following documents: purchase order, purchase invoice, purchase return order, purchase credit memos, sales order, sales invoice, sales return order, sales credit note.

The Postponed VAT field can be edited in general journal lines and on the VAT Additional Info page. When a transaction with VAT is posted, the date of the VAT settlement date is recorded in the posted documents: posted purchase invoice, posted purchase credit memo, posted sales invoice, posted sales credit memo.

The postponed VAT is also recorded in the tables: VAT Entry and Detailed VAT Entry.

Default Postponed VAT Setup on Corrective Documents

To automatically process VAT amount on sales credit memos as a ostponed VAT amount, until the document is signed by a bill-to customer.

  1. Choose Lightbulb that opens the Tell Me feature icon, enter Sales & Receivables Setup, and then select a related link.

  2. On the Sales & Receivables Setup page on the General FastTab, select the Credit Memo Confirmation field. The Postponed VAT field will be selected automatically in such documents as Sales Credit Memo and Sales Return Order.

Note

The Postponed VAT field can also be selected manually in the beforementioned documents ,if a check mark is not inserted in the Credit Memo Confirmation field on Sales & Receivables Setup page.

In other documents, the Postponed VAT field has to be selected manually, if it is required to use the postponed VAT feature.

Postponed VAT in the Sales Credit Memo

The Postponed VAT functionality can be used provided that all settings described in Postponed VAT.

To create and issue a sales credit note:

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Sales Credit Memos, and then select a related link.

  2. Select New and enter sales credit memo data.

  3. On the General FastTab, check the value in the Postponed VAT field. The field should contain the value that matches the settings defined in the previous steps.

Note

If a VAT amount based on a sales credit memo should be posted and applied as a standard (not postponed) VAT, uncheck the Postponed VAT field on the **General FastTab. The system will update this information in all document lines.

  1. Post the sales credit memo in a standard way.

  2. Check the Postponed VAT field in a posted sales credit memo. Search for Posted Sales Credit Memos.

  3. The selected posted sales credit memo can be displayed as a card.

  4. You can also check how postponed VAT has been saved on the VAT Entries page. To do this, select Find Entries in a posted purchase invoice, and then select the VAT Entry line and Show Related Entries.

  5. The entries created on theGeneral Ledger Entries page are also noteworthy. The postponed sales VAT amount has been posted to a G/L account different from theG/L account used for typical output (sales) VAT posting, which was defined in the setup. In order to validate the G/L entries in a posted purchase invoice, select Navigate, and then select the G/L Entry line and click Show Related Entries.

After you have received the confirmation of sales credit memo receipt from the recipient, you can apply the postponed VAT. To learn more about the process of postponed VAT application, see VAT Application Worksheet section. If VAT amount has been applied unintentionally, it is possible to postpone it again by using the VAT application worksheet.

For information on how to apply a postponed VAT on documents other than posted sales credit memo, please read the VAT Application Worksheet section.

Postponed VAT in Documents Posted via the General Journal

In the general journal lines, you can post postponed VAT for documents of the Invoice or Credit Memo type with Sales or Purchase as the main posting type.

To post a purchase document from a general journal by using the Postponed VAT functionality:

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter General Journals, and then select a related link.
  2. In the journal line fill in the fields as required.
    • In the Document Type field, select Invoice.
    • In the Gen. Posting Type field, select Purchase.
    • In the Gen. Bus. Posting Group, VAT Bus. Posting Group and VAT Prod. Posting Group fields, select the groups with the settings corresponding to the data on the document.
  3. Fill in the Posting Date, VAT Settlement Date, Document Date and Document Receipt/Sales Date fields.
  4. Enter the number in the SAFT Ext. Document No. field.
  5. In the general journal line, select the Postponed VAT field. The VAT amount shown in the document will be posted on an account that was selected in VAT posting setup.
Note

To select the Postponed VAT field, you can use the function in the VAT Additional Info line.

  1. Fill in the other fields in the general journal line in a standard way.
  2. Post the journal lines in a standard way.
  3. To apply the Postponed VAT in this journal line, use the VAT application worksheet. To learn more, read VAT Application Worksheet.
Note

The Postponed VAT field will not be automatically selected if the Sales Credit Memo document type is selected in the journal line, if the Credit Memo Confirmation field on the Sales & Receivables Setup page is selected. If this document is posted from the general journal, you have to select the Postponed VAT field manually.

See Also

VAT Application Worksheet

Posting VAT Documents in General Journals