Prepare Your SAP System for Electronic VAT Declaration

  • by Kees van Westerop, Senior SAP Consultant, Kwest Consulting
  • August 10, 2010
More and more countries in the EU are allowing electronic declaration of Value Added Tax (VAT) reports. See the configuration and technical settings you can implement in your SAP system to enable you to electronically submit VAT to tax authorities.
Key Concept
Within SAP systems, the most common method for the VAT declaration is VAT report RFUMSV00. This report provides the information used to make the VAT declaration to tax authorities. It is a manual exercise to enter the data from the SAP system into the tax authorities system. Some countries now offer the possibility to send the VAT declaration electronically directly from your SAP system.

For companies in the EU, the main way to do a Value Added Tax (VAT) declaration is to run VAT report RFUMSV00 (or to use transaction S_ALR_87012357). This report provides the VAT information that is to be used for tax declaration. However, this information needs to be copied manually into the final VAT declaration.

Since 2005, SAP has provided the possibility to send VAT electronically to the tax authorities. This is not yet supported by all tax authorities, but it is in countries such as Germany and the Netherlands. The number of countries supporting the electronic VAT declaration is expected to increase in the coming year.

The principles for setting up the electronic VAT declaration are the same for all countries, but in this article I’ll explain how to do it for the Netherlands. This article applies to SAP ERP Central Component (SAP ECC) 6.0 systems.

Kees van Westerop

Kees van Westerop has been working as an SAP consultant for more than 25 years. He has an MBA degree in mathematics and a degree in finance. Kees has been concentrating on the financial modules, especially in general ledger accounting, cost center accounting, and consolidation. He also has a great deal of experience with rollouts of kernel systems and integrating finance and logistics.

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