Introduction
As of 01.01.2016 you can be confronted with purchase invoices whereby the tax liability is shifted from the invoice (delivery) date to the payment date of a purchase invoice. It could also be that you are allowed to issue sales invoices whereby the tax liability is shifted towards the payment date of the sales invoice.
In Exact Globe Next we have functionality in place to cater for this kind of scenarios. It's called the 'Flexible VAT system'. Main idea is that upon entering invoices the VAT amount is not recorded on the VAT to claim or VAT to pay general ledger. Instead it will be "parked" on a separate general ledger. This general ledger functions as a suspense general ledger account. Upon payment and reconciliation of the invoice, the general ledger account entry will be reversed to the VAT to claim / VAT to pay account.
Below you can read how to setup the Flexible VAT system.
Flexible VAT System in Exact Globe Next
Enable Setting
First you need to activate the Flexible VAT System via System > General > Settings > General Ledger Settings > Section VAT > checkbox 'Flexible VAT System'.
Setup VAT code
You need to create a separate VAT code for cash based transactions. The setup of this VAT code is the same as for VAT codes you currently use for transactions. The only difference for cash based VAT codes is explained below:
Checkbox VAT cash system: Enable this checkbox if you want to use this VAT code for cash based transactions
VAT to be paid account: Type or select the general ledger account to be used for recording the VAT amount during sales invoice entry if the VAT code used is based on the VAT cash system. This account functions as a suspense general ledger account. Upon payment and reconciliation of the invoice, the general ledger account entry will be reversed to the VAT to pay account.
VAT to be claimed account: Type or select the general ledger account to be used for recording the VAT amount during purchase invoice entry if the VAT code used is based on the VAT cash system. This account functions as a suspense general ledger account. Upon payment and reconciliation of the invoice, the general ledger account entry will be reversed to the VAT to claim account.
Additional information
The use of the Flexible VAT system is supported for Slovak legislation. Despite we are working on fixing an issue with the VAT Control Statement in combination with the Flexible VAT system. This issue will be fixed and released in the first week of February 2016. The fix will then be available in Product Update 409 (Service Pack 6), 410 (Service Pack 6) and 411 (Service Pack 2).