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SAP's Acquisition Tax Accrual Functionality Expedites VAT Declaration in EU Countries

by Gary Byrne, Senior Editor, SAPinsider

December 12, 2011

In a recently published article for GRC Expert titled "Use SAP Acquisition Tax Accrual to Meet VAT Declaration Requirements," Kees van Westerop discusses an issue that a few European Union countries face: including an acquisition tax accrual in value-added tax (VAT) declarations for goods received without an invoice receipt. According to van Westerop, "almost all sales and purchase activities within the European Union (EU) are relevant for value-added tax (VAT). VAT reporting is based on postings made for invoices sent and for invoices received. However, in some EU countries a VAT also has to be reported even if no invoice has been received yet. This obligation exists when goods are acquired from vendors located in other EU countries and when the invoice still has to be received by the 15th of the month after the goods were received."

The tax acquisition accrual is necessary to comply with legal requirements in the Czech Republic, Hungary, Poland, and Slovakia. In his article, van Westerop includes steps for defining the acquisition code and creating a technical account in the general ledger (G/L) for posting the tax acquisition accrual. He explains two key configuration steps that are necessary to set up a tax acquisition accrual for automatic posting in a G/L account and includes an example of the business process involved for reporting the acquisition tax accrual.





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