Introduction

According to the Order No VA-55 "On the Approval of Rules for the Processing and Submitting of the Data Taxes Invoice Registers", approved by the Head of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania in 2004, April 21 the processing and submission of data about value added tax invoice registers is updated to create conditions for the taxable persons to e-way present the data of issued and received invoices for the Tax Authority using standardized format for i.SAF application. i.SAF format must match the current Standard of Accounting Data Files technical specifications and technical requirements (FileVersion iSAF1.2).

To support i.SAF format version 1.2 on Microsoft Dynamics 365 for Finance and Operations (starting form 7.3 version) the following hotfix was delivered together with a set of Electronic Reporting configurations and a package of data entities setting up Electronic Messages functionality for the purpose of i.SAF reporting:

Version of Dynamics 365 for Finance and Operations

Link on KB article

7.3

https://support.microsoft.com/en-us/help/4091584

See the article by the link in the table above for more information about setup feature and its usage.

This article in dedicated to the changes in the i.SAF feature for Lithuania to support potential necessity of establishing the correspondence between the Sales tax codes in the system and enumerated list of VAT codes provided by Standard of Accounting Data Files technical specifications and technical requirements when a company needs to setup Sales tax codes in the system with additional level of details than the Standard of Accounting Data Files provides.

Overview

According to the Standard of Accounting Data Files technical specifications and technical requirements VAT codes reported in the i.SAF report in XML format must comply the enumerated list of VAT codes prescript by the Table 1 “VAT table” of the “Tables of the Technical Specification of the Standard Accounting Data File”. However, a company in Lithuania may need to setup Sales tax codes in the system with additional level of details than the Standard of Accounting Data Files provides. In this case reporting of i.SAF with the Sales tax codes from the system would be incompliant with the Standard of Accounting Data Files. To have possibility to establishing the correspondence between the Sales tax codes in the system and enumerated list of VAT codes provided by Standard of Accounting Data Files the new versions of Electronic Reporting (ER) configurations must be installed:

Configuration name

Configuration type

Version

Invoices Communication Model

Model

52

i.SAF model mapping

Model mapping (export)

52.17

i.SAF format (LT)

Format XML (export-import)

52.4

Important note! After importing of new versions of ER configurations, check that “i.SAF model mapping” is marked as “Default for model mapping”.

The new version of “i.SAF format (LT)” (52.4) includes application specific parameters, where a user must define which Sales tax codes in the system (here and further “System Sales tax codes”) correspond to which values from the enumerated list of VAT codes prescript by the Table 1 “VAT table” of the “Tables of the Technical Specification of the Standard Accounting Data File” (here and further “Standard VAT codes”).

To setup application specific parameter, open Electronic Reporting workspace, select “i.SAF format (LT)” format and select Configurations > Application specific parameters > Setup on the Action pane, select ReportTaxCodesLookup on Lookups fast tab for the latest version of the format and on the Conditions fast tab define which “Standard VAT codes” must correspond to which “System Sales tax codes”.

As for example, if you have in the system two “System Sales tax codes” (VAT1, VAT2) which must be reported in one “Standard VAT codes” (PVM1), you would need to add the following lines on the Conditions fast tab:

Lookup result

Line

Tax Code

PVM1

(the value must be selected from the predefined enumerated list)

1

VAT1

(the value must be selected from the list of values which are entries in the Sales tax codes table)

PVM1

(the value must be selected from the predefined enumerated list)

2

VAT2

(the value must be selected from the list of values which are entries in the Sales tax codes table)

Column “Line” is the counter which controls order of execution of the conditions of lookup field.

Add all necessary for your Legal entity conditions for those “Standard VAT codes” which must be reported for your Legal entity. According to the documentation the list of “Standard VAT codes” is the following:

Standard VAT code

Description

PVM1

Goods and/or services supplied within the territory of the country (Article 19(1) of the Law of the Republic of Lithuania on Value Added Tax (hereinafter – LVAT))

PVM2

Goods and/or services supplied within the territory of the country (Article 19(3) of the LVAT)

PVM3

Goods and/or services supplied within the territory of the country (Article 19(4), (5) of the LVAT)

PVM4

Cases where the buyer must withhold and pay VAT on goods and services supplied to him (Article 96 of the LVAT) Exp. on 2016-03-31

PVM25

Cases where the buyer must withhold and pay VAT on goods and services supplied to him (Article 96 of the LVAT) Rate 21%

PVM26

Cases where the buyer must withhold and pay VAT on goods and services supplied to him (Article 96 of the LVAT) Rate 9%

PVM27

Cases where the buyer must withhold and pay VAT on goods and services supplied to him (Article 96 of the LVAT) Rate 5%

PVM5

Cases of supplies of goods and services exempt from VAT (Articles 20–33 and 112 of the LVAT)

PVM6

Cases of supplies of goods (services) for private use of a VAT payer (Articles 5 and 6 of the LVAT) Rate 21%

PVM7

Cases of supplies of goods (services) for private use of a VAT payer (Articles 5 and 6 of the LVAT) Rate 9%

PVM8

Cases of supplies of goods (services) for private use of a VAT payer (Articles 5 and 6 of the LVAT) Rate 5%

PVM28

Cases of supplies of goods (services) for private use of a VAT payer (Articles 5 and 6 of the LVAT) Rate 0%

PVM29

Cases of supplies of goods (services) for private use of a VAT payer (Articles 5 and 6 of the LVAT) Rate -

PVM9

Manufacture of tangible fixed assets by a VAT payer himself and material improvement of the building (structure) owned or not owned by a VAT payer (Article 6 of the LVAT) Rate 21%

PVM30

Manufacture of tangible fixed assets by a VAT payer himself and material improvement of the building (structure) owned or not owned by a VAT payer (Article 6 of the LVAT) Rate 9%

PVM31

Manufacture of tangible fixed assets by a VAT payer himself and material improvement of the building (structure) owned or not owned by a VAT payer (Article 6 of the LVAT) Rate 5%

PVM10

Cases when taxation of transactions is subject to a special taxation scheme (margin) (Articles 101–105, 106–110 of the LVAT) Exp.on 31-03-2016 Rate 21, 9, 5, 0

PVM32

Cases where transactions are subject to a special taxation scheme (margin) to transactions (Sections II, III of the LVAT) Rate 21%

PVM33

Cases of application of special taxation scheme (margin) to transactions (Sections II, III of the LVAT) Rate 0%

PVM12

Export of goods (Article 41 of the LVAT) Rate 0%

PVM13

Goods supplied to the EU VAT payers (Article 49(1), (4) of the LVAT) Rate 0%

PVM14

Other transactions (Articles 42, 43, 44, 45, 46, 47, 48, 49(2) and (3), 51, 52, 53(1), (5), (6) and (10) of the LVAT) Rate 0%

PVM15

Goods and/or services supplied outside Lithuania (cases where VAT is not chargeable because the supply of goods and/or services is considered to have taken place outside Lithuania and is not subject to VAT in Lithuania, but VAT can be deducted according to the provisions of Article 58(1)(2) of the LVAT) Rate -

PVM34

Goods and/or services supplied outside Lithuania (cases where VAT is not chargeable because the supply of goods and/or services is considered to have taken place outside Lithuania and VAT cannot be deducted according to the provisions of Article 58 of the LVAT) Rate -

PVM16

Cases where acquisition of goods from other Member States is considered to have taken place within the territory of the country (Articles 41 and 122 of the LVAT) Rate 21%

PVM17

Cases where acquisition of goods from other Member States is considered to have taken place within the territory of the country (Articles 41 and 122 of the LVAT) Rate 9%

PVM18

Cases where acquisition of goods from other Member States is considered to have taken place within the territory of the country (Articles 41 and 122 of the LVAT) Rate 5%

PVM35

Cases where acquisition of goods from other Member States is considered to have taken place within the territory of the country (Articles 41 and 122 of the LVAT) Rate 0%

PVM36

Cases where acquisition of goods from other Member States is considered to have taken place within the territory of the country (Articles 41 and 122 of the LVAT) Rate -

PVM19

Cases goods acquired by a VAT payer of the Republic of Lithuania, who is an intermediary (second party) in three-way trading were directly exported from one Member State to other Member State and supplied to a VAT payer of such other Member State (Article 122(3) of the LVAT) Rate -

PVM20

Services acquired from foreign countries (excluding the EU VAT payers) the output VAT on which is calculated by the buyer (Article 95(2) of the LVAT) Rate 21%

PVM37

Services acquired from foreign countries (excluding the EU VAT payers) the output VAT on which is calculated by the buyer (Article 95(2) of the LVAT) Rate 5%

PVM38

Services acquired from foreign countries (excluding the EU VAT payers) the output VAT on which is not calculated by the buyer (Article 95(1)(3) of the LVAT) Rate 0%

PVM39

Services acquired from foreign countries (excluding the EU VAT payers) the output VAT on which is not calculated by the buyer (Article 95(1)(2) of the LVAT) Rate -

PVM21

Services acquired from the EU VAT payers the output VAT on which is calculated by the buyer (Article 95(2) of the LVAT) Rate 21%

PVM40

Services acquired from foreign countries (excluding the EU VAT payers) the output VAT on which is calculated by the buyer (Article 95(2) of the LVAT) Rate 5%

PVM41

Services acquired from foreign countries (excluding the EU VAT payers) the output VAT on which is calculated by the buyer (Article 95(2) of the LVAT) Rate 0%

PVM42

Services acquired from foreign countries (excluding the EU VAT payers) the output VAT on which is calculated by the buyer (Article 95(2) of the LVAT) Rate -

PVM22

Cases where VAT on goods and/or services supplied by a foreign taxable person not established within the territory of the country (excluding the cases of PVM18, PVM19) is calculated and paid by the buyer (Article 95(3), (4) and (5) of the LVAT) Exp. on 31-03-2016 Rate 21, 9, 5

PVM43

Cases where VAT on goods and/or services supplied by a foreign taxable person not established within the territory of the country (excluding the cases of PVM18, PVM19) is calculated and paid by the buyer (Article 95(3), (4) and (5) of the LVAT) Rate 21%

PVM44

Cases where VAT on goods and/or services supplied by a foreign taxable person not established within the territory of the country (excluding the cases of PVM18, PVM19) is calculated and paid by the buyer (Article 95(3), (4) and (5) of the LVAT) Rate 9%

PVM45

Cases where VAT on goods and/or services supplied by a foreign taxable person not established within the territory of the country (excluding the cases of PVM18, PVM19) is calculated and paid by the buyer (Article 95(3), (4) and (5) of the LVAT) Rate 5%

PVM46

Cases where VAT on goods and/or services supplied by a foreign taxable person not established within the territory of the country (excluding the cases of PVM18, PVM19) is calculated and paid by the buyer (Article 95(3), (4) and (5) of the LVAT) Rate 0%

PVM47

Cases where VAT on goods and/or services supplied by a foreign taxable person not established within the territory of the country (excluding the cases of PVM18, PVM19) is calculated and paid by the buyer (Article 95(3), (4) and (5) of the LVAT) Rate -

PVM23

Calculated import VAT. Rate 21, 9, 5

PVM24

Import VAT the offsetting of which is controlled by the STI. Rate 21, 9, 5

PVM48

Goods and/or services acquired outside Lithuania (including the cases of charging VAT of a foreign country and of the import of goods for domestic consumption)) (cases where the acquisition of goods and/or services is considered to have taken place outside the Republic of Lithuania and the output VAT is not chargeable because the acquisition is not subject to VAT in Lithuania) Rate -

PVM49

Cases where agricultural products and services are purchased from farmers who are subject to the compensatory VAT rate scheme Rate 6%

PVM100

Other cases

Important note! It is important to add “PVM100” which must collect data by “other cases” as the last in the list (its “Line” value must be the last in your table).  Set it up as following:

Lookup result

Line

Tax Code

PVM100

The last in your list

*Not blank*

This setup means that all the tax transactions for Sales tax code of which there is no specific setup (no “Standard VAT code” is defined for it specifically) will be considered for PVM100. It is mandatory to define such lookup result field at the end of the list of your conditions.

When all the necessary correspondences are established, change "State" of the Application specific parameters configuration to "Completed" and save the configuration.

Hotfix information

Fix downloading instructions are here:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/dev-itpro/analytics/download-electronic-reporting-configuration-lcs

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