Design and implement

Design and implement

Thursday, August 25, 2016

SAP add-on for SAF-T Poland

In Europe SAF-T is now in force in Austria, France, Lithuania, Luxembourg and Poland. Germany, UK, Ireland, Norway and the Czech Republic are most likely next to introduce SAF-T. Lithuania is expanding its SAF-T.
Starting October 1, 2016 all VAT-registered taxable persons, - including foreign companies registered for VAT - will be required to submit a SAF-T file in XML format to the LT Tax authorities on a monthly basis.

SAF-T SAP solution: fully integrated in SAP

We now offer a SAP add-on solution for SAF-T Poland (ABAP) at a fixed all inclusive fee. It is fully integrated in SAP without an external interface or use of external software. All inclusive means implementation, training and 1 year of free support and maintenance for bug-fixes & legal updates.
Our IT solution can be reused for other countries.

SAF-T Poland

Besides the monthly SAF-T VAT file in Poland, companies have to be able to meet the SAF-T obligation 'on request' containing different legal requirements. This submission applies in case of a preliminary tax inquiry, a tax audit and tax proceedings where the SAF-T file should be provided to the PL tax authorities in a short timeframe.  To avoid disputes and or penalties it is therefore important that a company is ready.

To establish synergies we have setup a joint venture initiative with a global development partner of SAP and leading software company in the area of e-invoice, e-bookkeeping, e-archive, e-ticket and such SAP add-ons in Poland. This company provides SAP certified add-ons for legal compliance to a large number of global well-known companies.
  • Runs over SAP
  • User friendly with single user interface (SAP)
  • Easy to install by external SAP transport
  • Easy to maintain by upgrades via transport files
  • Has its own global SAP namespace so there is no effect on SAP standards and is not affected by SAP upgrades
  • Standard SAP authorizations used
  • Open source code as ABAP programming language
  • Vendor independent
  • One year free maintenance service including bug-fixes & upgrades according to legal compliance
Last Thursday - 25 August 2016 - was the deadline of the monthly VAT SAF-T PL submission.
Our generated SAF-T VAT file reconciles with the numbers of the Polish VAT return and have also been checked with the official tool of the Ministry of Finance.

Tuesday, August 9, 2016

Norway might introduce SAF-T

Norway has now also proposed to introduce SAF-T reporting for VAT registered businesses with a go-live date of 1 January 2017.

Tax authorities, due to technological innovations, have become increasingly better in executing their tax audit. The probability that the Tax Authorities will issue additional assessments and penalties in the near future because errors in indirect tax are detected, increases by the day. The SAF-T standard, originally created by the OECD, is intended to give tax authorities easy access to the relevant data in an easily readable format. This leads to much more efficient and effective tax inspections.
  1. Mandatory e-filing
  2. Benchmark: SAP and SAF-T PL
  3. Innovation and tax authorities

Friday, July 29, 2016

Real time VAT ledgers in Hungary

Following the changes announced on ERP and invoicing software requirements in Hungary, the Hungarian government recently announced that businesses issuing invoices using an invoicing software will be required to provide real time data regarding these invoices.
The real time data provision will have to include all transactions in which another business with a Hungarian tax number is involved and the invoice includes at least 100,000 HUF VAT.

The new real time data providing requirement will be introduced in two steps. As the first step from the 1 January 2017 (as a test phase) it will be optional to provide the additional data. The system will go live and the new requirement will become an obligation from the 1 July 2017. The new requirement assumes additional IT development in terms of the invoicing software on the side of the taxpayers issuing invoices.

Since the invoicing software is supposed to be able to provide data for the Tax Authority in case of an audit since the 1 of January 2016, the new requirement is not supposed to put an excessive administrative burden on the taxpayers.

As these rules are in the proposal phase right now, nothing is certain until the Hungarian Parliament approves them. What is certain is that it is never too early to start preparing for these changes, which will affect the administrative obligations of a great number of business.

Read more: Real time VAT ledgers in Hungary

Wednesday, June 29, 2016

Monthly SAF-T VAT file in Poland (JPK-VAT)


According to new regulation Large Enterprises are obliged to submit mandatory VAT SAF-T file in legal XML format for the first time on 25 August 2016. It is a monthly obligation even if the VAT reporting period itself is quarterly.

SAP and VAT SAF-T

I refer for complete overview to 'SAF-T for Poland and SAP'.

Most companies download the standard SAP VAT return reports from SAP to Excel and have an Excel working paper for review and adjustments. The data in the SAP reports are retrieved from various SAP tables.

The SAF-T VAT file need to reconcile with the submitted VAT return (monthly or quarterly). If this file does not reconcile to the submitted VAT return the risk that the PL tax authorities will ask questions - explain the differences - is high.

Our SAF-T VAT solution for Poland
  • First deadline to submit SAF-T file is August 25, 2016 (feasible)
  • Our solution ensures the completeness of the required data
  • Meets legal XML format
  • A control report exists that the total VAT amounts and data in the SAF-T VAT file reconcile
Read more

Monday, June 27, 2016

HMRC guidance: publish your tax strategy - June 24, 2016


Who needs to publish
If you’re a company, partnership, group or sub-group, you’ll need to publish a tax strategy if in your previous tax year you have either a:
  • turnover above £200 million 
  • balance sheet over £2 billion
For groups and sub-groups, it’s the combined totals of all the relevant bodies that you must use. This is separate to the 2014 Organisation for Economic Co-operation and Development’s (OECD’s) ‘Country-by-Country Reporting’ model (CBCR). A business not headed by a UK company not meeting the threshold in its own right may still qualify if they satisfy the OECD’s CBCR framework threshold of a global turnover of more than €750 million.

Who doesn’t need to publish
You don’t need to publish a tax strategy if you’re an:
  • open-ended investment company
  • investment trust

Responsibility
Your business is responsible for determining whether it meets the threshold and for publishing the tax strategy, unless it’s part of a group or sub-group. In these cases it’s the responsibly of the head of the group or sub-group. You can publish a strategy on behalf of a group or sub-group if your company is registered in the UK.

What to include in your strategy
Your tax strategy will explain your business’s tax arrangements. You don’t need to include amounts of tax paid or commercially sensitive information. If your group has a separate UK tax strategy you should publish the relevant parts.

Partnerships
HMRC wants to know how your partnership as a whole manages its tax affairs.

Multinational
If your business is part of a multinational group, you should publish any strategy, or parts, relevant to UK tax.

How you manage tax risks
You should work out and include what tax risks are linked to your business’s size, complexity and any changes to your business. Other information on governance arrangements to include:
  • details on how you manage your business’s tax risk
  • a high level description of key roles and their responsibilities
  • information on the systems and controls in place to manage tax risk
  • details on the levels of oversight of your business’s board and its involvement

Your attitude to tax planning
If your business has a code of conduct you should include details of it. You should also include:
  • why you might seek external tax advice, if any
  • an outline of your tax planning motives
  • the importance of each to your tax strategy
Where your business forms part of either a group or sub-group, you should include the group’s overall approach to structuring tax planning.

Your tax risks
You should say if your business’s internal governance has rigid levels of acceptable tax risk. If so, you should explain how it is influenced by stakeholders.

Working with HMRC
While your business’s approach to working with HMRC will be understood by your Customer Relations Manager (CRM), you’ll still need to put it in your tax strategy. You should include:
  • how your business meets its requirement to work with us
  • how you work with us on:
    • current, future and past tax risks
    • tax events
    • interpreting the law
You can include further information to add value, understanding or context. CRMs won’t give you any clearances in relation to publishing details of your dealings with us.

How to publish
You must make your tax strategy available free of charge on the internet as either a:
  • separate document
  • self-contained part of a wider document
You must make it available to the public free of charge until the following year’s strategy has been published. It doesn’t need to be called a strategy.

When to publish
Your first strategy should be published before the end of your first financial year commencing after Royal Assent of Finance (No. 2) Bill 2016. Your strategy counts as ‘published’ when it is first put on the internet. After the first strategy, you must publish one each year, within 15 months of the last one being published. Although you don’t have to notify HMRC when you’ve published, it would be helpful for HMRC to assess compliance if you let your CRM know when you have done so.

Penalties You can get a penalty if you haven’t published your tax strategy correctly and in time. You may also receive a penalty if your strategy doesn’t remain accessible free of charge until publication of the next strategy. HMRC will send you a warning notice giving you 30 days to either publish your strategy or make it available again (free of charge).
Any penalty will run from the first day you didn’t publish your strategy properly. The penalties are for:
  • the first 6 months - up to £7,500
  • 6 to 12 months - a further penalty of up to £7,500
  • more than 12 months - £7,500 every additional month
If your business is part of a group or sub-group the head will get the penalty.

Appeals
If you believe you shouldn’t have a penalty, you should speak with your CRM first. You can appeal any penalty.

HMRC - Large businesses: publish your tax strategy 
HMRC Guidance - historical background