Microsoft Dynamics NAV contains some special tables to manage the tasks necessary for settling Tax and reporting to the customs and tax authorities.

Tax Reporting

You can use tables to calculate the VAT due for a period. Microsoft Dynamics NAV creates an entry in the VAT Entries window for each posted transaction that involves VAT. These entries are used to calculate the VAT that must be settled for a given period. Then you can prepare and print the Tax statement report.

Tax Statement

You use a Tax statement to specify the basis for calculating the Tax payable to the tax authorities. In the Tax Statement window, you define the Tax statement based on the accounts in the Chart of Accounts window or based on entries in the Tax Entries window. The advantage of using the Tax entries option is that you can close these entries by posting the Tax Settlement. It is easier to locate Tax correction entries in previous accounting periods, where the Tax statement has been done, by working with Tax entries.

The Tax statement is normally defined when you initially set up the company in the program. It is recommended that you set up the statement with the format that is required by the tax authorities. After the statement has been defined, it can be previewed and printed.

For more information on Tax statements, see How to: Define Tax Statements, How to: Preview Tax Statements, and How to: Print Tax Statements.

Tax Settlement

Periodically, you must remit the net Tax to the tax authorities. You can use a batch job as often as you want if you need to settle Tax frequently. After you have approved the Tax statement, you can run the Calc. and Post Tax Settlement batch job to close the open Tax entries and transfer purchase and sales Tax amounts to the Tax settlement account.

For more information on transferring Tax amounts, see How to: Transfer Tax Amounts to the Settlement Account.

Note
As soon as the Tax entries have been posted and their status is closed, they cannot be opened again. However, you can still create Tax reports from these closed entries.

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