Tax codes are used in ERP-Systems to explicitly identify the VAT data. If it is necessary to import the reports from the ERP system, create the relevant tax codes and the corresponding tax code mapping in the [Master data] main area.

In addition to the country code and the schema, the tax code name [“A2”], tax code description [“7 % domestic output tax”], and tax type [A “Output VAT”] are also important when using the VAT@GTC. The types of tax codes are essentially displayed in the VAT@GTC, e.g. Output tax or Input tax etc. Based on this the system can book the VAT-relevant transactions correctly. The tax percentage that is displayed next to the account key is used for that [here 7,000].

An overview of all available tax codes can be found in the [Taxcode]. The following chapter describes the functions available in this dialogue.

Create a tax Code

The assignment of tax codes is done on the company codes level. That is why it is necessary to select the period, company and company code from the dropdown menus in the dialogue.

After clicking on the [create] button, [tax code - detailed view] with the following input fields is opened:

Tax Code

The tax code can be between 2 and 20 characters long. As a rule, the tax code from the ERP system is to be used exactly. In SAP, these are always two-digit (letters/digits/special characters), in other ERP systems, the length may vary.

Tax Code description

Tax code description identifies which VAT data is assigned to the tax code. It is recommended to use the same text as in the ERP system.

Reporting Country

This dropdown menu contains all countries, created in the [Countries] dialogue. Usually, the reporting country of the tax code matches the current reporting country in the VAT@GTC. For statistical purposes, tax codes can also be created that do not match the system's current reporting country. These tax codes can be evaluated using the "Foreign tax codes" report.

Type of tax code

The type of tax code corresponds to the account code/type of tax code in the SAP system. The most commonly used types of tax code are:

ESA	VAT on intra-community acquisition and Reverse Charge
ESE	Input VAT on intra-community acquisition and Reverse Charge
MWS	VAT
NVV	Non-deductible VAT
VST	Input VAT

Good to know!

Transactions in form of an intra-community acquisition and Reverse Charge result in the reverse charging of tax. VAT has to be paid while the company can also deduct input VAT at the same time. In order to generate a correct VAT return it is necessary to create two tax codes [type of tax code “ESA” and “ESE”]. In addition to that, further types of tax code can be created manually in the VAT@GTC.

VAT rate

Enter the amount of tax rate (as percentage of the net amount). Up to four decimal places are available.

Currency

The currency depends on the reporting country and is automatically added by the application. The currency is defined in the [Country] dialogue.

Input tax refund

The tax code is relevant for the input VAT-tax code abroad. If an application for input VAT refund should be filed, this country can be selected. Within the standard application this field has no further function.

The tax code is irrelevant for the application for input VAT refund.

Reporting date in following month

Values imported with this Tax code will be used to generate Resubmissions in the following month instead of effecting the current month's tax return.

Tax codes that have the reporting date in the following month are excluded from the reconciliations and are not taken into account.

Disable Tax code for import

This function allows the creation of old tax codes that are no longer used, but excludes them for import.

If the tax code appears in an ERP report, an error message appears. The import can only succeed if the tax code for this company is reactivated in the specified period. In this way, old tax codes can still be stored in the master data and, at the same time, it can be prevented to use them again.

Manual corrections can still be made with deactivades tax codes.

Comment

A free comment on the selected tax code can be added here.

Input tax Quote in %

This field is activated only when the [taxcode is partly deducible] check box is activated. This only plays a role in the Excel import of the reporting values with only one import value.

Only one import value is used

If only one import value is to be imported, the setting can be made here whether

Assessment basis net
Assessment basis gross
Tax

should be taken into account. This only plays a role in the Excel import of the reporting values.

The function [Copy based on] can be used to create a tax code, that is similar to an already existing one. The data from the “original” tax code will be copied to the current tax code input fields and can be edited then.

Having entered the information, save the new tax code by clicking on the [Save] button. After that the overview of the available active tax codes will be opened. The new tax code appears in the [Mapping of tax codes] dialogue.

Import Tax Codes

If there is a large amount of tax codes in the ERP system, there is a possibility to import them to the VAT@GTC, instead of entering the data manually.
Click on the [Import] to open the page [Taxcode – Import].

After selecting the period, company and the corresponding company code, there are three import options available.

Import aus CSV-Datei

The following three options are available when importing a tax code from a csv-file:

Import with mapping	When activating this checkbox, the tax codes will be imported from a csv-file together with the corresponding mapping. The values will be shown in the [Mapping of tax codes] dialogue. The field positions in the tax form have to be already marked in the file. The tax code mapping is not imported. It has to be done manually afterwards.
Import all tax codes from csvfile (all units)	If the file contains the tax codes for several companies, it is possible to import all of them. The data are assigned automatically, using the company code. Only the tax codes of selected company are imported (several company codes if required). The tax codes of other companies that the csv-file also contains are not imported.
Delete existing Tax codes and mappings	Tick this checkbox solely if the tax codes of the selected company has to be completely renewed. The reason for this can lie in the fundamental change of a tax codes (e.g. due to a merger). Deletion of the tax code is a subject to the following defined logic: If the already existing tax codes are imported again, they will be completely overwritten. If the tax codes were in the archive, they will be restored and reactivated. If a tax code is imported, that did not exist before, it will be created as a new tax code. If there are tax codes that become irrelevant due to the new import, they will be moved to the archive. If the checkbox is not activated, the already existing tax codes and mappings remain. This is especially relevant if a large number of tax codes has to be added to an existing company code or if the tax codes have to be imported for another company code.

Import from other Company code

To copy the tax codes from the same period from another company code, please select the relevant company code from the corresponding dropdown menu from which the tax codes are to be copied. All company codes of the active companies in this period are available. By use of the button [Copy from company code] the tax codes of the selected company code will be imported into the active company code that is currently worked at.

The options, "Import with mapping" and "Delete existing tax codes and mappings" are also available with this variant of the import and are explained in the section "Import from CSV file".

Import from other period

To copy the tax codes for the same company codes from another period, please select the relevant period from the corresponding dropdown menu from which the tax codes are to be copied. All active periods are available in the VAT@GTC. By use of the button [Copy (from period)] the tax codes of the selected period will be imported into the active period that is currently worked at.. Thus, please make sure that the correct period is selected previously.

The options, "Import with mapping" and "Delete existing tax codes and mappings" are also available with this variant of the import and are explained in the section "Import from CSV file".

After import, the VAT@GTC informs the user about the number of added and changed tax codes. Tax codes containing errors are also displayed if applicable.

Handling Special Characters in the Tax Code-Template

To import tax codes with special characters, the tax code has to be enclosed in quotation marks in the CSV file.

For [ " ] to be imported as a tax code, the quotation mark has to be written twice.
To import A", the tax code has to be written into the CSV file as follows: "A""". The outer quotation marks are for importing the tax code with special characters. The inner quotation marks are there for [ " ] to be recognized as tax code.

Good to know!

The following special characters are not allowed to be used for tax codes: [ - ], [ _ ], [ ~ ], [ | ], [ \ ], [ ß ], [ & ].

Export Tax Codes

If the tax codes created in the VAT@GTC have to be used outside the application, there is a possibility to export them in a CSV file via [Export]. This allows the user to get a clear overview of tax codes in an Excel file - esp. if there are a lot of tax codes - and save the current state including the mappings locally. The exported data can be adjusted if required and then imported to the VAT@GTC again, using the import function.

After selecting the period, company and the corresponding company code, there are different settings available:

Import with mapping	When the checkbox is activated, the mapping will be copied as an additional column to the csv file. This requires the performed mapping for the tax code. The tax codes are exported without the corresponding mapping of the VAT fields.
The number of exported tax codes can be defined for every export.
Current Company code		Only the tax codes of the selected company code are exported.
all Company codes for unit		In addition to the tax codes of the selected company code, tax codes of other codes in the same company are also exported.
all company codes for all units in this period		All tax codes of all active companies [with their active company codes] are exported to a csv file.

Copy mapping to other ERP Systems

Use the [Copy Mapping to other ERP systems] function to copy the tax code to all company codes of ERP group. This function is the best way to copy entire tax code sets into a large group of companies with the same set. To use this function, an ERP group must be created under Settings → Connection parameters and the relevant companies must be assigned to this ERP group under Master data → Companies.

The options, "Import with mapping" and "Delete existing tax codes and mappings" are also available with this variant of the import and are explained in the section "Import from CSV file".

Edit Tax Code Form

The [Edit tax code form] function contains a list of standard tax code procedures. New tax code forms can be created here.

Several fields can be filled in:

Tax code form	The 3-digit abbreviation of the tax code type is to be entered here, which is also used in SAP.
Tax type	This entry must be used to configure whether it is a matter of input or output tax.
Counter tax code form	Using this function, an already created tax code type can be defined as counter part. This is only to be entered if input tax and output tax are always due at the same time for the circumstances concerned, as in the case of intra-Community acquisitions or other reverse charge circumstances.
Comment	Optionally, a comment can be added.

Edit, delete and restore tax codes

Click on the [Edit] button of the selected tax code to open the [Tax code - detailed view]. Here the data of the already saved tax codes can be changed. The tax code name, reporting country and tax code procedure cannot be changed anymore. Click [Save] to save the entered data and go back to the tax code overview page.

Click on the [Show] button of the selected tax code to open the [Tax code - detailed view]. The data can only be viewed, but cannot be changed.

To delete a tax code click on the [Delete] button. The deleted tax code does not disappear, it is moved to the archived and can be viewed using the Display function. The restored tax codes are shown under the Active again.

Previously deleted tax codes can be restored using the [Restore] button.