In this guide, we'll show you how to enter invoices so that they are included in the tax return, and how to create a VAT return, a supplementary VAT return, and a VAT control statement in the web interface.
Contents:
Entering documents for the VAT return
Issued invoices are included in the VAT return for the month in which they have a taxable supply date:
Received invoices are included in the VAT return for the month in which they have a taxable supply claim date (the Apply taxable supply field):
You can set which date is prefilled in the Apply taxable supply field on a received invoice in Settings › Modules › Purchasing, on the Details tab, in the Date of taxable supply field:
Invoices are then included in the control statement and VAT return according to the VAT country, VAT line, and control statement line that you fill in. You can find them in the invoice detail on the Accounting tab:
Of course, VAT must be calculated on the invoice (Price summary tab). If the amount is at the zero rate, it will not be included in the return correctly:
Checking that documents are included in VAT and the control statement
The VAT source documents report fulfills a legal obligation and also helps you find discrepancies. It can also help you detect missing control statement lines on documents that are included in VAT. Open the accounting outputs from the All agendas menu (the Accounting outputs tile), or simply type the name of the output into the search in the top bar. On the left, a menu of outputs is displayed, divided into the groups Accounting outputs, VAT outputs, Receivables and payables - outputs, and Cash outputs.
In the VAT outputs › VAT source documents form, enter the period (posting date or taxable supply date), the VAT country, and the output. If you select Show results in agenda and click Show, the source documents open as a list with the VAT lines and VAT control statement line columns, so an empty control statement line on a document that belongs in the control statement is immediately visible. You can also create the source documents as a PDF file.
Creating a VAT return
You create the return in Accounting outputs › VAT outputs › VAT return:
Select the year and period for which you want to generate the return (monthly or quarterly).
Next, select the type of return: regular, regular/corrective, supplementary, or supplementary/corrective.
If an error is discovered by the last day of the following month, you can file a regular corrective return, which fully replaces the regular return that has already been submitted. If the error is discovered later, you must file a supplementary return, which lists only the differences from the regular return. You can learn more about the supplementary return below.
Then select the output: Create PDF file (the return form, a report such as VAT Return template no. 26) or Electronic VAT return (XML for the e-filing portal), which you upload to the tax authority's electronic filing portal.
We recommend uploading the file to the tax authority's website before filing and checking it for any errors. The file also includes data from the company settings, which you need to check, for example, before filing your first VAT return and control statement.
Finally, decide whether you want to save the return. The Save VAT return option in the Other section is selected by default, and the return is saved during export, whether you choose PDF or XML. Before saving, the application asks:
⚠️ Do not save returns that you are not yet submitting (for trial exports, clear the Save VAT return option). Saving is used solely for the potential creation of a supplementary tax return. A saved return cannot be viewed anywhere; it is only a database record. We therefore recommend saving a return only when it is the final return for the given month, and also saving a PDF of that return to your computer for any future checks.
Coefficients and proportional deduction
The advance coefficient for calculating the proportional part of the tax deduction has a default value of 1.00 (that is, 100%) in the form. If a company has used received supplies for both business and private purposes, for example, the law prescribes a proportional tax deduction; in that case, the coefficient is applied only in the proportional amount. For the first tax period, it is determined by a qualified estimate; in subsequent years, the settlement coefficient from the previous tax period is used as the advance coefficient.
In all VAT periods except the last one (month or quarter, depending on the type of taxpayer), the advance coefficient is used when compiling the VAT return to reduce the entitlement to the tax deduction. The entire procedure is governed by the VAT Act, Section 76.
At the end of the year, the settlement coefficient is calculated. It is calculated as a percentage, where:
the numerator is the sum of the supplies made that entitle the taxpayer to a tax deduction,
the denominator is the total of the value in the numerator and the sum of the values of the taxpayer's supplies made that are exempt from tax without entitlement to a tax deduction.
The exact calculation of this coefficient, including the rounding method, is also set out in Section 76 of the VAT Act.
The coefficient is calculated while compiling the VAT return for the last VAT period of the year.
It is applied within the VAT return for the last VAT period of the year.
It is used for the following year as the advance coefficient.
The deduction adjustment is then the difference between the calculated deduction and the claimed deduction (line 53).
The deduction reduction must also be reflected on the received invoice in the VAT lines field. In the Settings › Records › Accounting › VAT return lines code list, there are lines whose abbreviation contains the designation KR. In the case of a reduced deduction, you must select such a line on the invoice:
⚠️ ABRA Flexi lets you enter documents and compile reports, but the accounting entity is responsible for the correct tax assessment. If you have any doubts, contact your accountant or tax advisor.
Creating a supplementary VAT return
To create a supplementary tax return, you must first have a saved regular return (see the previous section). You then create the return in a similar way to the regular one: in VAT return, select the period and the type Supplementary or Supplementary/corrective:
In the Previous return field, select the saved regular return and fill in the Date changes were discovered. The form also includes a field for the reasons for filing the supplementary return.
After that, the procedure is the same as in the previous section.
Creating a control statement
You create the control statement in Accounting outputs › VAT outputs › Control statement.
Select the year and period for which you are submitting the control statement, and then the type of statement (regular, corrective, subsequent, subsequent/corrective).
Select Corrective only if you are filing a correction within the deadline for submitting the regular control statement. After this deadline, it is a subsequent control statement.
Select the Output according to your purpose:
Electronic control statement (XML for the e-filing portal) for filing,
Create PDF file with a choice of report, such as Control lines for the VAT tax return (DaP) or VAT control statement (summary lines only), to check the control statement summary lines against the VAT return,
Show results in agenda to check the documents that will be included in the statement; if you select Show only items with an empty control statement line, you can quickly find documents without a control statement line.
ℹ️ You no longer need to check the control statement summary lines against the VAT return in the desktop application; the PDF control statement reports in the web interface serve this purpose.
Creating a subsequent/corrective control statement and a quick response to a request
A subsequent or corrective control statement is compiled in a similar way, but unlike the VAT return, the entire control statement is submitted, not just the changes from the original.
You again create the subsequent control statement in Control statement, where you select the type Subsequent or Subsequent/corrective and fill in the Request reference number in the correct format. If you are only confirming the accuracy of the originally submitted control statement, or you are not required to submit a control statement, turn on the Quick response to request switch and select the reason: I am not required to file a control statement (zero control statement) or I confirm the accuracy of the last submitted control statement.
Use the quick response to a request only if you are not required to submit a control statement or you are confirming the accuracy of the original control statement, so no documents are included. You simply generate the electronic control statement (XML) and submit this "empty" control statement.
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