VAT & fees, reconciliation BS /periodandyear/help/taxation/reconciliation-bs/vat-and-fees section 2024-09-12T19:33:52+02:00 # VAT & fees, reconciliation BS VAT from 2022 /periodandyear/help/taxation/reconciliation-bs/vat-and-fees/vat2022 page 2024-09-13T13:35:28+02:00 # VAT from 2022 The module for VAT reconciliation is found under **VAT & fees - VAT** in the reconciliation balance sheet. It is automatically updated with accounting data imported to Period & Year. The module for VAT reconciliation in Period & Year consists of the same sections and rows that are used in the VAT return in Norwegian Tax Administration. It is automatically updated with the accounting data imported to the program, and gives you a good overview of the company's registered VAT, the VAT reported to Norwegian Tax Administration, and possible differences between the registered and the reported amounts. You will also find information about payments and/or repayments that are made. The reconciliation appendix **VAT specification** is created automatically from the VAT reconciliation as default. You can use it for continuous reconciliation, as well as reconciliation at year-end.

The VAT reconciliation is based on the usage of account 2740 for VAT settlement.

VAT return submitted can be imported from Altinn, and must be downloaded before the active period is reconciled. It is important to download from Altinn before starting the reconciliation work. Periods that are locked will not be affected by data being imported from Altinn. ## Selection of VAT period The selection of VAT period is made by the accounting system when reporting the VAT return and is updated in Period & Year when downloading the VAT return from Altinn. Information about this can be found at the top left of the **VAT** screen under **VAT & Taxes** in the balance sheet reconciliation. In Period & Year, viewing for **Monthly**, **Bi-monthly** and **Yearly** is supported. **Bi-monthly** is often the standard option. If monthly VAT reconciliation, a column is created for each month. If bi-monthly VAT reconciliation, a column is created for Jan-Feb, a column for Mar-Apr, and so on ### Changing VAT periods during an ongoing financial year It is possible to change VAT periods during an ongoing financial year, but as mentioned earlier, this must be done in the accounting system in connection with reporting the VAT return. When changing VAT periods, note that: - Previous reconciliation periods will not be affected by the change. - It is not possible to change VAT periods in locked reconciliation periods. ## The structure of the VAT reconciliation The module for VAT reconciliation consists of rows of general ledger accounts and VAT codes. Bookkept values on the general ledger accounts in the 27xx series appear in the column for Bookkept, and reported values on the VAT codes appear in the column for VAT return. It has the same structure as when reporting a VAT return to Norwegian Tax Administration/Altinn. ### Which accounts are mapped to which rows? InPeriod & Year, client accounts are connected to reference accounts. Each row with client accounts in the VAT reconciliation is mapped to a reference account, which in turn determines which one of the client accounts that are respectively displayed under the grouping of **Outgoing tax** and **Incoming tax**. Only accounts with registered transactions are displayed. ### Display transactions It is possible to display the journal entries that are registered on the accounts in the VAT reconciliation. Underlined amounts are clickable and when you click on one of those, the **Account analysis** dialogue is opened. In this dialogue, all of the transactions that have been registered on the account are listed. ## Field explanations Bookkept : The **Bookkept** column is automatically updated with values retrieved from account balances. If any of the account values are changed, the VAT module shall be updated as long as the period is ongoing. VAT return : In the **VAT return** column, the values reported to Norwegian Tax Administration are imported from Altinn. : If a bi-monthly or yearly VAT period has been reported, the last month in the period must be ongoing in order for you to show a value here. During ongoing, but not yet finished, VAT periods, preliminary amounts are displayed in this column to avoid differences. : These preliminary amounts are the same as the ones that are displayed on the corresponding rows in the **Bookkept** column. Difference : The values in the **Difference** column are calculated and filled out automatically, using the formula Bookkept minus Reported. Total due (+) / returned (-) : The program automatically calculates the total VAT debt or VAT recoverable, based on the registered input and output VAT, on the row **Total. due (+) / returned (-)**. The source system for VAT return : When downloading from Altinn, you get information about which accounting system has been used when reporting the VAT return. This is shown per. VAT period in column for VAT return Payment information : Payments or repayments are registered under this section with amount, voucher number and payment date. The amount is entered in the VAT period which the payment/repayment concerns, and not in the period when the payment/repayment was made. : [Example]{.underline} : If you have a VAT debt for January/February and the payment is made on April 10th. When you perform the VAT reconciliation in March and April, you register the payment in the column for January/February and select April 10th as payment date. Reconciliation documentation : The reconciliation appendix **VAT specification** is created automatically from the VAT reconciliation as default. You can deactivate (and reactivate) this functionality down to the left. The appendix is connected to the client account that is mapped to reference account 2740. : If any of the amounts in the VAT reports are changed, the appendix is updated automatically with the changes as long as the period is ongoing. : If you want to change any of the values on the appendix, you must do so via the VAT reconciliation. : To remove the appendix from an ongoing period, you must deactivate its auto-generation from the VAT reconciliation. : Depending on your selected VAT period, the appendix will be created: : - For each month, if you have selected the monthly VAT period. - In the last month of each two months, if you have selected thebi-monthly VAT period. - In the year-end period, if you have selected the yearly VAT period. VAT until 2021 /periodandyear/help/taxation/reconciliation-bs/vat-and-fees/vat page 2024-09-12T19:33:52+02:00 # VAT until 2021 The module for VAT reconciliation is found under **VAT & fees - VAT** in the reconciliation balance sheet. It is automatically updated with accounting data imported to Period & Year. The module for VAT reconciliation in Period & Year consists of the same sections and rows that are used in VAT report of the [Tax authority]{.mc-variable .MyVariables.Tax_authorities .variable}. It is automatically updated with the accounting data imported to the program, and gives you a good overview of the company's registered VAT, the VAT reported to [Tax authority]{.mc-variable .MyVariables.Tax_authorities .variable}, and possible differences between the registered and the reported amounts. You will also find information about transfers to the account for VAT settlement, and payments and/or repayments made. The reconciliation appendix **VAT specification** is created automatically from the VAT reconciliation as default. You can use it for continuous reconciliation, as well as reconciliation at year-end.

The VAT reconciliation is based on the usage of account 2740 for VAT settlement.

VAT report submitted can either be registered manually or imported from Altinn. If the active period is reconciled before the VAT report is submitted to Altinn, data must be registered. Later, data for this period will be updated with data sent to Altinn using the function for importing VAT data from Altinn. Periods that are locked will not be affected by data being imported from Altinn. ## Select a VAT period Before you get started, you need to select a VAT period for the company. This is done at the top of the left hand panel. You can choose between **Monthly**, **Bi-monthly** and **Yearly**. **Bi-monthly** is the default selection. If you choose monthly VAT reconciliation, one column for each month is created. If you choose bi-monthly VAT reconciliation, one column for Jan-Feb, one column for Mar-Apr, and so on, are created. ### Changing VAT periods during an ongoing financial year It is possible to change VAT periods during an ongoing financial year, even when the previous reconciliation months are locked. When changing VAT periods, note that: - Previous reconciliation periods will not be affected by the change. - Manually added values from the previous VAT periods will not be copied to the new VAT period. - It is not possible to change VAT periods in locked reconciliation periods. ## The structure of the VAT reconciliation The module for VAT reconciliation consists of different sections with numbered rows. This is the same structure that is used in [Tax authority]{.mc-variable .MyVariables.Tax_authorities .variable}s VAT report. ### Which accounts are mapped to which rows? In Period & Year, client accounts are connected to reference accounts. Each row in the VAT reconciliation is mapped to one or more reference accounts, which in turn determine which one of the client accounts that are displayed under each row. Only accounts with registered transactions are displayed. Click on a row to view its underlying accounts. ### Display transactions It is possible to display the journal entries that are registered on the accounts in the VAT reconciliation. Underlined amounts are clickable and when you click on one of those, the **Account analysis** dialogue is opened. In this dialogue, all of the transactions that have been registered on the account are listed. ## Field explanations Transferred VAT : When input and output VAT have been transferred to and recorded on the account for VAT settlement, the transferred VAT will be displayed on a separate row below each affected VAT account. Bookkept : The **Bookkept** column is automatically updated with values retrieved from account balances. If any of the account values are changed, the VAT module shall be updated as long as the period is ongoing. Reported : In the **Reported** column, the values reported to [Tax authority]{.mc-variable .MyVariables.Tax_authorities .variable} are imported from Altinn or entered manually.If you have selected a bi-monthly or yearly VAT period, or yearly VAT period, the last month in the period must be ongoing in order for you to enter a value here. During ongoing, but not yet finished, VAT periods, preliminary amounts are displayed in this column to avoid differences. : These preliminary amounts are the same as the ones that are displayed on the corresponding rows in the **Bookkept** column. Difference : The values in the **Difference** column are calculated and filled out automatically, using the formula Bookkept minus Reported. VAT due (+) or returned (-) : The program automatically calculates the total VAT debt or VAT recoverable, based on the registered input and output VAT, on the row **Total. VAT due (+) or returned (-)**. : Payments or repayments are registered on the row below. An automatic recalculation of the remaining debt or recoverable is then performed. The amount is entered in the VAT period which the payment/repayment concerns, and not in the period when the payment/repayment was made. : Example : You have a VAT debt for January and the payment is made on April 10th. When you perform the VAT reconciliation in March and April, you register the payment in the column for January/February and select April 10th as payment date. Reconciliation documentation : The reconciliation appendix **VAT specification** is created automatically from the VAT reconciliation as default. You can deactivate (and reactivate) this functionality down to the left. The appendix is connected to the client account that is mapped to reference account 2740. : If any of the amounts in the VAT reports are changed, the appendix is updated automatically with the changes as long as the period is ongoing. : If you want to change any of the values on the appendix, you must do so via the VAT reconciliation. : To remove the appendix from an ongoing period, you must deactivate its auto-generation from the VAT reconciliation. : Depending on your selected VAT period, the appendix will be created: : - For each month, if you have selected the monthly VAT period. - In the last month of each two months, if you have selected the bi-monthly VAT period. - In the year-end period, if you have selected the yearly VAT period. Salaries and Salary Taxes /periodandyear/help/taxation/reconciliation-bs/vat-and-fees/salares-salary-taxes page 2024-09-12T19:33:52+02:00 # Salaries and Salary Taxes The function **Salaries and Salary Taxes** is available for **Period closing** and **Year-end closing** and is found under **Reconciliation BS - VAT & fees**. Employer tax reconciliation is an automated reconciliation of data from various sources: Reconciling the basis for salary taxes by comparing: - Basis for salary taxes based on the book amounts in the accounts. - Basis for salary taxes reported on A-messages sent to Altinn. Reconciliation of the period\'s Salary taxes by comparing: - Estimated salary taxes based on the book amounts in the accounts. - Estimated salary taxes from reporting on A-messages sent to Altinn. Reconciliation of salary taxes due by comparing: - Chargeable salary taxes in the accounts (account with reference account 2770). - Reporting of salary taxes on last term on A-messages sent to Altinn. Reconciliation of payroll reporting by comparing: - Salary payments etc. in the period based on amounts in the accounts. - Salary payments etc. during the period reported on A-messages submitted to Altinn. Cost accounts and debt accounts from the accounts are identified from the accounts reference account in the client\'s account plan in Period & Year. The feature for retrieving data from Altinn automatically fills in an order (form A-06) that generates a message (A07) for each month and for the year so far, which is retrieved in the background from Altinn. This information contains information about both salary, basis for salary taxes and salary taxes that are filled out in the reconciliation. By extracting data from Altinn and the financial system and comparing it, the reconciliation is performed and documented for account 2770 Unpaid salary taxes. The only thing the user needs to do is check and enter voucher information (voucher number, date and amount) for when payment of the term is made. By checking to **Create Salary tax appendix Automatically**, reconciliation attachments will be produced for account 2770 Unpaid salary taxes. If there are differences in reconciliation, it may be advisable to first check that all relevant expense and balance accounts are linked to the correct reference account. Linking to a reference account is what ensures that an account is correctly identified in terms of reporting and employer duty. The reference accounts used are as follows: Cost Accounts liable to salary taxes basis and payroll reporting basis : | Reference accounts | Account name | |----|----| | 5000 | Wages & salaries to employees, variable, ENIC, reportable | | 5005 | Agreed tariff allowances, variable, ENIC, reportable | | 5090 | Accruals account wages and salaries, variable, ENIC, reportable | | 5091 | Accrued salaries, variable, ENIC, reportable | | 5092 | Holiday pay, variable, ENIC, reportable | | 5099 | Other salary items, variable, ENIC, reportable | | 5100 | Wages, regular, ENIC, reportable | | 5105 | Agreed tariff allowances, regular, ENIC, reportable | | 5190 | Accruals account wages, regular, ENIC, reportable | | 5192 | Holiday pay, regular, ENIC, reportable | | 5199 | Other salary items, regular, ENIC, reportable | | 5200 | Free car, ENIC, reportable | | 5210 | Free phone, ENIC, reportable | | 5220 | Free newspaper, ENIC, reportable | | 5230 | Free housing, ENIC, reportable | | 5240 | Interest-rate advantage, ENIC, reportable | | 5250 | Insurance, ENIC, reportable | | 5251 | Group life insurance, ENIC, reportable | | 5252 | Accident insurance, ENIC, reportable | | 5253 | Personal conseq Insurance, ENIC, reportable | | 5254 | Industrial injury insurance, ENIC, reportable | | 5280 | 5280 Other benefits, ENIC, reportable | | 5300 | Share of profit, bonuses | | 5330 | Directors\' remuneration ENIC re | | 5430 | Running persions, ENIC, reportable | | 7103 | Car allowance, reportable, ENIC | Balance accounts used for time-limitation of payable and reporting benefits : | Reference accounts | Account name | |--------------------|------------------------------------------| | 2931 | Provision for salary, not reported, ENIC | | 2940 | Holiday pay ENIC, reportable | | 2945 | Unpaid holiday pay ENIC | Payroll reporting basis, not included in ENIC basis : | Reference accounts | Account name | |--------------------|--------------------------------------| | 5281 | Other benefits, reportable, not ENIC | | 5390 | Other reportable remuneration | | 5421 | Pensions, reportable, not ENIC | | 7100 | Car allowance, reportable | | 7130 | Travel expenses, reportable | | 7150 | Subsistence expenses, reportable | Reimbursement of sick pay and other reimbursement that reduces the basis for employer\'s social security contributions : | Reference accounts | Account name | |--------------------|---------------------------------| | 5800 | Reimbursement sickness benefits | | 5890 | Other salary reimbursement | Pension costs which are included in ENIC basis but not in payroll reporting basis : | Reference accounts | Account name | |--------------------|------------------------------------| | 5425 | Mandatory Occupation Pension (OTP) | Balance account for payable employer\'s contribution : | Reference accounts | Account name | |--------------------|----------------------------------| | 2770 | Unpaid employer\'s contributions | Balance accounts for accrued ENIC on accrued salary and holiday pay : | Reference accounts | Account name | |--------------------|---------------------------------| | 2780 | Employer\'s contr accrued wages | | 2785 | Employer\'s contr Holiday paym | ENIC Cost accounts : | Reference accounts | Account name | |--------------------|----------------------------------------| | 5400 | Employee insurance contribution (ENIC) | | 5405 | ENIC of holiday payments | Tax Withholding /periodandyear/help/taxation/reconciliation-bs/vat-and-fees/tax-withholding page 2024-09-12T19:33:52+02:00 # Tax Withholding The function **Tax Withholding** is available for **Period closing** and **Year-end closing** and is found under **Reconciliation BS - VAT & fees**. Reconciliation of **Tax Withholding** is an automated reconciliation of data from five different sources: - Tax Withholding (reference account 2600 in the chart of accounts) - Bank deposits, tax withholdings (reference account 1950 in the chart of accounts) - Reporting of A-messages to Altinn (A07 Reconciliation information) - Payment voucher for the bimonthly payment of Tax Withholding (currently registered manually) - Due deduction and contribution deduction (reference account 2610 and 2620 in the chart of accounts) The feature for retrieving data from Altinn automatically fills in an order (form A-06) that generates a message (A07) for each month and for the year so far, which is retrieved from Altinn. This information contains information on payroll, payroll taxes and tax deductions that are used in the reconciliation. By fetching data from Altinn and the financial system, and then comparing this, the reconciliation is performed and documented for account 1950 Bank deposits and account 2600 Tax withholding. The only thing the user needs to do is check and enter voucher information (voucher number, date and amount) for when payment of the term. By checking to **Create Tax Withholding specification appendix automatically**, reconciliation attachments will be produced for account 2600 Tax Withholding and 1950 Tax Withholding Deposit. The reconciliation can be made for each month, but it is always made for pair of months as it is in the rules for the payment terms. The reconciliation appendix for balance accounts is connected to account 2600, where the reconciliation amount for tax withholding for the term is shown. The amount will be the reported amount for last term collected from Altinn. If this amount is the same amount as the unpaid tax withholding on account 2600, then it will not be a difference on the account. The reconciliation appendix for balance accounts is also connected to account 1950, but without amount. Then, it is easy to show if the tax withholding amount on the account is the same as the amount on account 1950 Bank deposits. If account 1950 Bank deposits contains a provision for withholding tax or contribution tax, this will be taken into account and deducted when reconciling tax withholding.