A country-specific update for Italy to support new format of VAT declaration IVA2014 in Microsoft Dynamics AX

INTRODUCTION

This article describes a country-specific update for Italy to support new format of VAT declaration IVA2014 in Microsoft Dynamics AX 2009 SP1, Microsoft Dynamics AX 2012, and Microsoft Dynamics AX 2012 R2.

With new functionality, Italian companies will be able to submit to the authority VAT declaration in a new electronic format IVA2014. The functionality is applicable for Microsoft Dynamics AX 2009 SP1, Microsoft Dynamics AX 2012, Microsoft Dynamics AX 2012 R2, and Microsoft Dynamics AX 2012 R3.

More Information

The functionality is available with activated Italian country context.

The Italian authority has published a new format of annual communication of VAT data in electronic format that has major differences with the previous format. The new format must be used by companies who provide the authority with the annual VAT statement for starting from 2013 tax period. The form for the annual communication of VAT data may only be filed electronically. Therefore, any other method of submission is excluded.

The detailed information on the format, conditions, rules that must be considered by valid entities is available in the official resources:

http://www.agenziaentrate.gov.it/wps/content/Nsilib/Nsi/Home/CosaDeviFare/Dichiarare/Dichiarazioni+Iva/Iva+2014/SchedaIIVA2014/The annual VAT declaration has ASCII format and consists of four kinds of records:

• Record type "A" is the head of delivery records and contains the identification data of the declaration supplier and the tax code of the subject responsible for sending the declaration electronically.

• Record type "B" is the record that contains personal information and other title data.

• Record type "D" is the record that contains the data related to the informational blocks of the VAT 2014.

• Record type "Z" is the record that contains summary data of the report.

The structure of the report format is describe in the following document:

http://www.agenziaentrate.gov.it/wps/file/Nsilib/Nsi/Strumenti/Specifiche+tecniche/Specifiche+tecniche+dichiarazioni/Iva+2014/Iva_Ivabase+2014/Allegato+A+ST+Iva2014+e+Ivabase2014/PROVV.ALL..pdfWith the hotfix, companies will be able to perform the following operations:

• Enter and support company data required for the VAT declaration.

• Enter and support writer's information that is required for the VAT declaration.

• Enter and support declarer's information required for the VAT declaration.

• Define codes of informational blocks for providing financial and tax data (report fields).

• Define rules and queries for particular report fields to retrieve data from tax register in a flexible way, to report data based on tax transactions.

• Define Tax codes to be considered for particular report fields based on tax transactions.

• Define General Ledger accounts ranges to be considered when calculating data in report fields based on tax transactions.

• Define values in report fields manually in case tax register does not contain information that is required in the declaration.

• Define rules for report fields that contain totals of other report fields.

• Reverse sign of declared value where it is required.

• Define template for the declaration and use in when creating annual VAT declarations with possibility to review and adjust calculated data.

• Create either ordinary, corrective, or supplementary declaration types.

• Export annual VAT declaration in required ASCII format and save it as a file per year per ATECOFIN.

• Review exported annual VAT declarations, if it is necessary to adjust it and export the correction.

Setup of report fields can be performed through Yearly tax communication setup form:

General Ledger > Setup > Sales tax > External > Yearly tax communication setupYou can define report fields that will be used by default in annual VAT declaration. The functionality allows defining Field ID, Description of the field, Format, Calculation type, Sign for the value.

There are three kinds of calculation for each report field:

• Tax transactions

  • User can define Tax codes to be considered when calculating data based on tax register information.

  • It is necessary to define if tax base or tax amount must be provided as a report field value.

  • It is possible to define if sales tax charge transactions must be included.

  • User can review and adjust query to define the rules for tax base or tax amount calculations in the correspondence with the company's policies and kinds of business processes.

• Manual

  • User can define any values manually; it will be used as a default value for the particular field in generated VAT declarations.

• Total

  • User can define the rule of the total report field calculation based on other report fields that are defined in the setup of the report.

  • Two arithmetic operations are available: addition and subtraction.

Report generation functionality is available through the Yearly tax communication form:

General Ledger > Reports > External > Yearly tax communicationThe functionality allows to create new report, open it for review and adjustment, export generated report, and delete it.

When opening the report for review and adjusting, three main blocks of functionality is available:

• Report information

  • Generic information for the particular annual VAT report

• Header

  • Company information

  • Declarer data

  • Writer data

  • Correction information

• Report lines

  • Each report field that is defined in setup will be available with calculated value that is based on Calculation type.

  • User can change the values calculated during annual VAT report generation. However, these changes will not have effect on rules and values that are defined in setup.

  • Report fields are not recalculated automatically if related report fields are manually changed during adjustment procedure.

When exporting annual VAT declaration in ASCII format, user are prompted for the path and file name. The declaration will be saved as a file, and contain information in required format.