Setting up ZAF VAT Declaration

Below is the guide to setup ZAF VAT declaration.

The prerequisites:

1. Parameter Setup

2. Activity Codes

DCL – Tax Declaration

This activity codes is used to activate the VAT declaration on debits and cash receipts.

DCLOT – Vat Declaration, other legislations

 * For payment-based tax PBDCL activity needs to be activated.

Tax Setup

1. BP Tax determination.

BP tax determination is used to define, the Tax rule linked to BPs, the Tax level linked to products and the Tax rate to be used in sale and purchase invoices.

2. Tax Rates (Tax Codes) that will be used must have a legislation linked.

Tax rates defines the rates that can be applied to sale, purchase and A/P-A/R invoices, and related journal entries. Each tax rate code is associated with a set of VAT accounts based on its associated accounting code.

3. BP Tax Rules

BP Tax Rules defines the tax rules associated with each BP.

4. Tax Level

This function is used to define the tax levels associated with each product. The product tax level is used, based on the BP Tax rule to determine the tax rate to be applied to the sales and purchase functions.

5. Create Vat Entities
   Vat entities are created to manage VAT entities for a single or multiple companies or single or multiple sites. Vat entities enable you to define VAT returns at site level.
   
   

One company or site must be identified as the head member of the entity. The information related to the head member such as address, and tax number will be used for the extraction and submission. You can create a VAT entity for each company.

6. Setup Tax GL accounts

Tax/ Vat accounts should be marked as a tax account.

A control can be setup on the GL Accounts to allocate specific tax codes that can be selected when capturing transactions. If no tax code are added on the control the tax code selected under tax management will default.

7. Setup GL accounts that are subjected to tax

Accounts can be setup to be subjected to tax, and the default tax type can be selected.

8. VAT Box Setup

The VAT boxes section defines the structure of the VAT preparatory report, using title boxes, based on the accounting entry details or on the total.

The Detail section contains combinations of values to be matched with the entity lines so they can be extracted and considered in the VAT declaration calculation.

* The South African VAT declaration function DCLVATZAF has been deprecated. Please use DCLVATZAF1.

9. VAT Form

Vat forms are used to create VAT returns. The VAT box codes defined for the VAT form must be consistent with the VAT boxes setup. VAT form needs to be linked to a legislation and declaration. VAT Form shows the formulas used to calculate the tax refundable or tax payable.

VAT forms for ZAF work in offline mode.

This completes the setup for VAT.  

Once transactions with vat codes are processed a vat return can be created which will be used for extraction and submission.

Navigate to Declarations> Tax Management>Others> Processes to create a vat return.

All transactions for the requested period will show on the log below as well as the VAT refundable or payable.