VAT Calculation (MATA995 - SIGAFAT)

VAT - Value Added Tax - levies on the following operations of Portuguese market:

• Sales of goods and services made in national territory.
• Goods Import.
• Intra-community operations (with member states of European Union) made in national territory.

VAT has different fees for invoice ancillary values: freight, insurance, taxed ancillary expenses, and tare. Thus, VAT of goods and services as well as VAT of each one of ancillary values are calculated and saved separately, enabling each value calculated to be identified in the document.

Legislation Contemplated:

• Decree-law nr. 442-B/88

For further information, check:

http://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributarios/civa_rep/index_iva.htm

Procedures

Protheus provides all basic configurations of Variable Taxes and TIO for VAT. If you need to add new configurations, check the registers:

1. In Variable Taxes, you must add taxes by filling out some fields. The main fields are:

• Tax Code: enter VAT, IVF, IVS, IVD, OR IVT, depending on the situation.
• Inflow Formula: enter the name of the function that calculates VAT during outflow. The function available in Microsiga Protheus® is M460VAI.
• Tax Record Field: VAT must be saved in the fields 1, 3, 4, 5, or 6 of tax records, depending on the situation.
• Fee %: enter the standard fee for VAT calculation. The standard fee is 21%. However, if you need to use a different fee in specific operations, just use VAT Plan for exception treatment.

Example of configuration of Variable Taxes:

2. In TIO - Type of Inflow and Outflow, VAT calculation must be indicated.

In the folder Variable Taxes, you must configure the calculation for goods and services, freight, insurance, taxed expenses, and tare. For this, fill out the following fields correctly:

• Tax Code: ”: enter VAT, IVF, IVS, IVD, OR IVT, depending on the situation, where:
• VAT: when TIO needs to calculate VAT for goods and services.
• IVF: when TIO needs to calculate VAT for freight entered in the invoice.
• IVS: when TIO needs to calculate VAT for insurance entered in the invoice.
• IVD: when TIO needs to calculate VAT for taxed expenses entered in the invoice.
• IVT: when TIO needs to calculate VAT for value of tare entered in the invoice.
• Sum in Trade Note: select 3-Indifferent (since this value must not be added to the trade note total – VAT is already added in the value of items).
• Sum in Inv. Total: select 3-Indifferent (since this value must not be added to the document total – VAT is already added in the value of items).

3. In Customer Register and Supplier Register.

• Region: this field is in the folder Taxes and it must be filled out. The following Taxation Regions are considered standard by the system: 001-Continent, 002-Independent Region of Madeira, 003-Independent Region of Azores, 004-Intra-community, and 005-Extra-community.

• Withhold VAT: this field must be filled out if VAT value calculated must be withheld. For this, the field must be checked as Yes. With this configuration, the Financials module can make the withholding when the bill payable or receivable is written off.

4. In Products File, the following configurations are required:

• Group: this field is in the folder Taxes. It must be filled out with the taxation group of product or service to indicate the type of item that is transacted by the invoice and to determine the VAT rate through VAT Plan.
• The following taxation groups are considered standard by the system: 001-List I of CIVA (VAT Code); 002-List II of CIVA (VAT Code); 003-Out of Lists I and II of CIVA (VAT Code); 004-Freight; 005-Insurance; 006-Taxed Accessory Expenses; 007-Non-Taxed Accessory Expenses, and 008- Tare.
• MV_GRPACES: this parameter is used to determine VAT Plan for ancillary values and to indicate the taxation group.