XML based VAT reporting
The first deadline (April 10th) for submitting the new and modernized VAT return in XML format is approaching for many companies
In the new VAT return, the basis and the VAT amount must be reported in line with the standardized VAT codes, which were introduced in SAF-T, instead of the fixed items as in the old VAT return. In addition, it is mandatory to specify some special VAT treatments (e.g., loss on outstanding claims and reversal of input VAT). We experience that companies do everything from changing relevant system-reports and setting up new VAT codes, to creating validation rules and changing work routines for submission in order to get ready for the new reporting.
How to prepare and how can Deloitte support you
1. Understand the new reporting requirements
Do you want a better understanding of the new VAT return and what steps you should take? Our skilled experts are happy to set up a workshop to give you a better understanding of the VAT return requirements, and how these can affect your systems and processes.
2. Connect your own VAT codes to standard VAT codes in the new VAT return
If VAT codes are used, then these should be connected to standard VAT codes to report the new VAT return. This activity may also have been carried out as a part of the SAF-T implementation, as VAT codes should be mapped to standard VAT codes in the SAF-T file, and it can therefore be possible to leverage on the work performed during the SAF-T implementation. Regardless of whether you have a mapping of your VAT codes from before or not, we recommend to review the mapping well in advance before reporting VAT on the new VAT return format. If you have any questions related to the VAT codes or how to connect your own codes, Deloitte's VAT experts will be happy to assist you.
3. Choose a reporting solution and adapt the work processes
We recommend reaching out to your system vendor to get an overview of what your system vendor offers. Some system vendors offer system to system submission of XML files, while others offer a solution for manual submission. We also experience that some system vendors do not offer support for the new VAT return. In such cases, we at Deloitte can help you set up reporting functionality or simple models for calculation and submission (e.g., in Excel). These models can easily be adapted to existing work processes. We also have experience in implementing functionality from system vendors (e.g., SAP) and can also help with this if desired.
4. Check the new VAT return before submission
Before submitting the first VAT return on the new format, we recommend you to check if your reporting is correct in relation to the new format and the validation rules for the new VAT return. Deloitte has tools for both validating XML files and a basis for manual submission.
5. Reconcile the new VAT return with SAF-T
Our experience is that SAF-T does not always correspond with the numbers reported in the VAT return. We can help you reconcile your VAT return with your SAF-T file. This is a reconciliation we are aware of that the tax authorities have a framework for. The reconciliation is a good way to confirm that both SAF-T and the new VAT return have been set up correctly in relation to VAT.
6. Tool for reconciliation of VAT return and SAF-T, as well as control of SAF-T
Deloitte has also developed an analysis tool that can be used to visualize and analyze SAF-T files. Several controls in the tool are linked to VAT, such as a VAT specification. Please contact us for more information on the SAF-T analysis tool.
If you have any questions related to the new VAT return or the connection between the SAF-T file and your VAT reporting, we will be happy to answer this. We look forward to hearing from you.