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VAT on Rejections

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Created by Denelle D ( ) on 2012-01-12 07:48:14 Back to Topics

VAT on Rejections

For VAT on rejections, the IDEC format states that VAT breakdowns need to be provided on Memo and/or Coupon level.

In the RM Coupon Breakdown Record, the Field “VAT Difference” has the following explanation: 

1. In case of Rejection Stage in the parent Rejection Record = "1" or "3"  VAT Amount Difference = VAT Amount Billed (Element 63) - VAT Amount Accepted (Element 65)

In case of Rejection Stage in the parent Rejection Record = "2"  VAT Amount Difference =  VAT Amount Accepted (Element 65) - VAT Amount Billed (Element 63)

2. If populated with a non-zero value, RM Coupon VAT breakdown record should be provided. Should be equal to the sum of VAT Calculated Amount in the RM Coupon VAT Breakdown record. 

So it is required that the VAT breakdowns correspond to the VAT Difference.

To us this does not make sense, we would have expected the breakdowns to correspond to VAT Amount Accepted.

What if both carriers apply VAT, but dispute about the percentage? The VAT Difference would then need to show a mixed percentage, which does not seem to be useful.

 Example:

Line

ISC

VAT on ISC %

VAT on ISC amount

 

Allowed

50,00

12%

6,00

 

Accepted

50,00

14%

7,00

 

Difference

0

???

1,00

 

 What Base Amount and VAT percentage should be shown in this case on the VAT breakdown record?

Thank you for reviewing this matter.

Replied by Ashley H on 2012-01-27 02:15:18

Hi Denelle,

 

Thanks for your patience on this question. Please find the answer as follows:

 

Line

ISC

VAT on ISC %

VAT on ISC amount

 

Allowed

50,00

12%

6,00

 

Accepted

50,00

14%

7,00

 

Difference

0

1,00

 

 

The breakdown will state:

Vat base amount: 50

Vat % = 14%

Vat calculated amount = 1.00 (There is no validation that Vat Calculated amt = Vat base amt * Vat % at Rm Cpn/Awb breakdown level)

 

Hope this clarifies.

Regards,

Ashley

 

From: DUNCOMBE Denelle
Posted At: January-12-12 7:48 AM
Posted To: SIS Forums - Requirements & Functionality
Conversation: VAT on Rejections
Subject: VAT on Rejections

 

For VAT on rejections, the IDEC format states that VAT breakdowns need to be provided on Memo and/or Coupon level.

In the RM Coupon Breakdown Record, the Field “VAT Difference” has the following explanation: 

1. In case of Rejection Stage in the parent Rejection Record = "1" or "3"  VAT Amount Difference = VAT Amount Billed (Element 63) - VAT Amount Accepted (Element 65)

In case of Rejection Stage in the parent Rejection Record = "2"  VAT Amount Difference =  VAT Amount Accepted (Element 65) - VAT Amount Billed (Element 63)

2. If populated with a non-zero value, RM Coupon VAT breakdown record should be provided. Should be equal to the sum of VAT Calculated Amount in the RM Coupon VAT Breakdown record. 

So it is required that the VAT breakdowns correspond to the VAT Difference.

To us this does not make sense, we would have expected the breakdowns to correspond to VAT Amount Accepted.

What if both carriers apply VAT, but dispute about the percentage? The VAT Difference would then need to show a mixed percentage, which does not seem to be useful.

 Example:

Line

ISC

VAT on ISC %

VAT on ISC amount

 

Allowed

50,00

12%

6,00

 

Accepted

50,00

14%

7,00

 

Difference

0

???

1,00

 

 What Base Amount and VAT percentage should be shown in this case on the VAT breakdown record?

Thank you for reviewing this matter.

 
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