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VAT Opening Overview

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You can use VAT opening functions to add opening balances in statutory records. In Microsoft Dynamics NAV, you can maintain and generate appropriate and accurate statutory records and reports.

Use of VAT Opening

VAT opening functions include input VAT, output VAT, and VAT deferments.

Input VAT

You can add the opening balances related to input VAT for item types, general ledger accounts, and fixed assets. You must set the transaction type as Purchase for these types of transactions. For more information, see How to: Enter Opening Balances for Input VAT and Output VAT.

Output VAT

You can add the opening balances related to output VAT for item types, general ledger accounts, and fixed assets. You must set the transaction type as Sale for these types of transactions. For more information, see How to: Enter Opening Balances for Input VAT and Output VAT.

VAT Deferments

You can add the opening balances related to VAT deferments for item types, capital goods, and fixed assets. You must set the transaction type as Purchase for these types of transactions. For more information, see How to: Enter Opening Balances for VAT Deferment.

You must add the capital goods purchase date for capital goods and fixed assets. If VAT deferments are settled, then you must add the number of deferments in the No. of Deferment Settled field.

For example, the date of purchase is April 1, 2006 and the number of deferments is 12. You update the opening on June 1, 2006. Meanwhile, you have settled two deferments against your output VAT for April and May.

When you post the VAT opening journal with the posting date as June 1, 2006, the capital goods purchase date as April 1, 2006, and the number of deferments settled as two, 13 detailed tax entries from the deferment numbers 0 to 12 are created, and the Settlement field is selected for the first two entries (0 and 1).

See Also

Tasks

How to: Set Up VAT
How to: Set Up State Codes and Tax Identification Numbers for VAT
How to: Post VAT Transactions
How to: Set Up VAT Opening
How to: Enter Opening Balances for Input VAT and Output VAT
How to: Enter Opening Balances for VAT Deferment