After executing the Output VAT Return for Italy, you notice that on the Preview, the Summary per Tax Code ("Riepilogo per codice imposta") section is left empty and this prevents you from submitting your VAT Return to the Fiscal Authorities.
Reproducing the Issue
- Go to the Work Centre Tax Management
- Go to View VAT returns
- Select Output VAT Domestic Register XXX (where XXX stands for the VAT Return ID)
- Click on the Preview button
- A new window opens for the PDF file generated, scroll down to the end and check the section Summary per Tax Code
- You can see that this section is left empty and that nothing has been automatically calculated as expected
In Business Configuration activity Tax on Goods and Services, sub-section Define Tax Codes, you have defined Tax Deductibility as 1 - Fully Deductible for some Customised Tax Codes used for Output Taxes, however, Tax Deductibility should only be used for Input Taxes.
- Go to Work Centre Business Configuration.
- Go to the relevant Implementation Project.
- Open the Activity list and then navigate to Fine-tune.
- Search for the Activity Tax on Goods and Services and open it.
- Open section Define Tax Codes.
- Check your customised Tax Codes (starting with "Z") and make sure that none of those in use for Output Taxes have any Tax Deductibility maintained in the Details part.
Now execute your Output VAT Domestic Register Return again, the section Summary per Tax Code should now be filled in.
In addition, if some of your Customer Invoices were missing the relevant Tax Code expected and, as per Italian Laws it is not possible to cancel them, please amend them with a Credit Memo which has the right Tax Code and execute your Output VAT Return again.
KBA , SRD-FIN-TAX , Tax Management , How To