DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

General Pro-Rata and Special Pro-Rata for VAT Tax


#1

Hello.

Have the Manager Software a report or module to work the General Pro-Rata or Special Prorate for VAT Tax?

Thank you.


VAT in Spain
#2

You need to be more specific. Remember, Manager is used in hundreds of countries. Have you read the Guide: https://www.manager.io/guides/8901?


#3

What information do you need? I almost never understand you.


#4

Start with what country you are asking about. Then explain the “General Pro-Rate” and “Special Prorate for VAT Tax” schemes or taxes or whatever they are. If these are something required by your tax authority, provide a link to official documentation. Then explain what functions having to do with those things you are referring to in a “module.” Then explain what kind of a report you are seeking. Finally, answer my question on whether you have read the Guide I linked to. If that doesn’t answer your questions, what are your questions?

Lots of forum members are happy to help. But without information, no one can.


#5

Hello.

Is there someone around here from Spain?


#6

What is your question?


#7

My question applies to Spain legislation or another Latin country that uses VAT. Mainly in the application of VAT proportionality applying the use of the software manager.


#8

What does that mean?


#9

Companies or institutions with ‘mixed businesses’ (that is, companies that carry out both operations that are subject to VAT and deductible, as well as operations that are tax exempted and/or not deductible) can only deduct VAT at a percentage corresponding to the volume of deductible operations. These companies therefore have to apply the pro-rata VAT method in order to determine tax deduction.

The pro-rata VAT method consists in applying a coefficient to the legal deductible VAT rates for acquisitions. This coefficient is updated periodically and the one to be applied in the current period is the actual rate calculated at the end of the previous period. At the end of the current period, a new pro-rata coefficient is calculated, which may be different to the one applied. In this case, an adjustment correction document has to be posted with the difference between the two coefficients.

Furthermore, for asset acquisitions, it may also be necessary to calculate the difference between the pro-rata coefficient of the acquisition year and the coefficient of the following years. In this case, an adjustment variation document has to be posted for assets with the difference between the coefficients divided by the number of years for which this variation has to be calculated, as defined by local legislation.

The VAT Pro-Rata Adjustment solution enables companies to meet these requirements, by providing functions to:

· Register the VAT pro-rata coefficient

· Apply the VAT pro-rata coefficient when posting an invoice acquisition

· Calculate the difference between the applied coefficient on the posted invoice and the periodic or annual pro-rata execution coefficient, and post an adjustment correction document

· Calculate the difference for asset acquisitions between the DPR (definitive pro-rata percentage) of the acquisition year and that of the current year, and post an adjustment variation document


#10

@gxtsoft, you should not have started a new topic to continue your inquiries about pro-rata VAT. Your second thread has been combined with your first.

You also apparently misunderstood my question. What you have posted most recently is documentation of SAP software. What I was hoping was to understand your question concerning Manager. So far, you have not provided links to official documentation, not explained what kind of report you seek, and not answered whether you have read existing documentation I linked to. You have only said your question pertains to Spanish legislation and quoted documentation from another product.

If you want answers about Manager, please tell us what your actual questions are. There is not a specific pro-rata VAT module or report in Manager. And Manager will not prepare your tax filings. But there is considerable flexibility in tax code application and a variety of tax reports from which you may get the information you need.


#11

Do you speak spanish?


#12

No.