Skip to main content

Test Home
You & IATA

Search

You are here: Home » Services » Financial Services » Simplified Interline Settlement » SIS Forums
  • Print this page
  • Share this page

Rejection on VAT

This is a read-only copy of the discussions. To view the original, where you can reply, go here. For info on how to log in, please see the instructions.

Created by Ma Y (Accounting Centre of Chin) on 2010-08-17 05:29:54 Back to Topics

Rejection on VAT

As the stated in IS-IDEC Record Structure, SFI32-element67, ‘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.’, we accordingly have two question about it.

 

1, Provided that Billing Airline is a Non-migrated Entity, when we raised a RM on VAT, do we have responsibility to add relevant elements in order to generate VAT breakdown, resulting from missing VAT relevant elements in Old-IDEC?

 

2, As above said, we realised that IS would do validation on element67 of SFI32, however we could not locate other validations on VAT amount in VAT breakdown.

For example: There is no statement in validation space about VAT calculated amount (element20 in SFI34). We accordingly suppose that there is no validation about the balance among the base amount, percentage and VAT caculated amount ( element16,18,20).

 

So, in my understanding, VAT breakdown Record is for the reason that provide a comprehensive explaination on VAT, which is similar with prorate slip. Therefore, we suggest VAT breakdown Record as a option record in IS-IDEC, although VAT amount is non-zero in coupon breakdown record.
Replied by James S on 2010-09-01 07:04:56
Hi
 
1. Yes, you would need to provide the complete breakdown, even if you don't know what was sent to you. Like today, you should be calculating what your allowed/expected amounts are. See this discussion for more information -- VAT would be treated the same as taxes in this situation.
2. Element 20 which you point out should include validation. In fact, if you see the other instances of SFI 34 (it's also used for Coupon VAT Breakdown, BM/CM Coupon VAT Breakdown, etc), element 20 does have the relevant validation. We'll fix this instance to bring it in line with the others. You should look at the validation of the others in the interim.

3. Your understanding is correct. It provides comprehensive information... just like the coupon breakdown on an RM record. The VAT breakdown record is optional if the VAT amount is 0. Otherwise it's necessary. Just like a single tax amount, it's absolutely necessary for the billed carrier to know how this is broken down.

James

 
ADVERTISEMENT


Additional information

© International Air Transport Association (IATA) 2014. All rights reserved.