Projects:Multitaxreport30/Functional Specification

Contents 1 Functional Specifications 1.1 Functional Specifications sign-off 1.2 Overview & Justification 1.2.1 Purpose 1.2.2 Overview and Justification 1.3 Scope 1.3.1 Functional Requirement 1 - Tables 1.3.2 Functional Requirement 2 - Data 1.3.3 Functional Requirement 3 - Accounting Date 1.3.4 Functional Requirement 4 - Filters 1.3.5 Functional Requirement 5 - Report Layout 1.3.6 Functional Requirement 6 - Tax and Withholding management 1.4 Uses Cases 1.4.1 Use Case 1 - A Purchase/Sales Invoice including a Tax rate such as VAT and a Withholding Tax Rate 1.5 Tax Report examples (M-303,M-110 and M-115) 1.5.1 M-303 Use Case Scenario 1.5.2 M-110 Use Case Scenario 1.5.3 M-115 Use Case Scenario: 1.5.4 Research on tax Spanish Tax Reports M-180 1.5.4.1 M-180 is the Annual version of M-115

Functional Specifications

Functional Specifications sign-off

Role	Name	Sign-off date
Dev	David Alsasua
GPS	Juan Pablo Calvente
GPS	Jaime Chamorro
QA	Pablo Sarobe

Overview & Justification

Purpose

The purpose of this document is to explain how existing "Invoice Taxes Report" must be enhanced to help the users to manually fill in and submit some Spanish Tax Reports.

"Invoice Taxes Report" enhancements are going to be implemented as a new commercial module (extension module), contaning a new report named "Multidimensional Tax Report".
This module is compatible with the "Advanced Payable and Receivable Management" feature.

The "Invoice Tax Report" enhancements described in this document could be extensible to others countries regardless this analysis is based on the Spanish Tax Requirements and the Spanish "GPS" team input, because the main goal of those enhancements is to allow the end-user to exploit the tax information registered in the system.

Overview and Justification

There are two types of Tax Reports:

1) “Statement” Tax Reports.

There are some tax reports that are complex to fill-in and submit to the tax authorities because they need to retrieve or take into account data from many sources besides the tax records saved in the system.

At the same time, the information required while being generated is also complex and cannot be easily handled by what we call a “Multidimensional Tax Report”. "Multidimensional Tax Report" concept is explained later.

This is the case of M-347, M-349, M-340 tax reports.

These reports must be implemented through the Tax Report Launcher, therefore those ones can be generated as a valid file to be submitted to the tax authorities in the AEAT web-site.

2) “Settlement” Tax Reports.

These reports are not so complex than the previous ones because its main purpose is to get a tax settlement based on tax records saved in the system.

These reports can be handle by using a “Multidimensional Tax Report” which can help the end-user to get the basis information in order to fill-in manually these tax reports in the AEAT web-site.

This is the case of M-303 and M-110 tax reports, M-303 is a VAT settlement tax report and M-110 is a Withtholding settlement tax report (of some kind of withholdings).

In addition, the "Multidimensional Tax Report" could also help the end-user to manually fill in few other tax reports that are not planned to be delivered now as part of the next version of the SPLP such as M-190, (which is the M-110 anual version) M-390 (which is the -303 annual version); and few others such as M-115, M-216, M-123 withholding tax reports. Anyway, an additional research is required to better understand if they can be filled-in manually by the end-user by using the "Multidimensional Tax Report" or not and how.

Scope

The approach Localization team is going to take in order to get (2) "Settlement Tax Reports" is to enhance the standard Openbravo "Invoice Taxes Report" as a Multidimensional Tax Report.

Invoice Taxes Report can be found now at the application path: Financial Management // Receivable & Payables // Analysis Tools // Invoice Taxes Report.

New Report could be found at the application path:Financial Management // Receivable & Payables // Analysis Tools // Multidimensional Tax Report.

In Scope:

• Sales and Purchase Invoices containing Taxes, like VAT, including Witholding Taxes.
  • Tax Rates such as a VAT
    • can be setup at the application path: "Financial Management || Accounting || Setup || Tax Rate || Tax"
      • this type can either be purchase or sales tax type and therefore could be shown in the Multidimensional Tax Report as either part of the Sales/Receipt Transactions or Purchase/Payments Transactions
      • this type will be used in either Purchase or Sales Invoices, for more information see Use Case 1.
  • Withholding Tax Rates
    • can be setup at the application path: "Financial Management || Accounting || Setup || Tax Rate || Tax", as "Withholding Tax" type.
      • this type can either be purchase or sales tax type and therefore could be shown in the Multidimensional Tax Report as either part of the Sales/Receipt Transactions or Purchase/Payments Transactions
      • this type will be used in either Purchase or Sales Invoices, for more information see Use Case 2.

Out of Scope:

• Purchase Invoices containing Withholdings as those ones are not currently supported by the Advanced Payables and Receivables management module.
  • Withholdings
    • this type can be setup at the application path: "Master Data Management || Business Partner Setup || Withholding"
    • and later on linked to a Business Partner (Vendor) in the application path: "Master Data Management || Business Partner - Withholding tab"
    • to be used in the application path: "Procurement Management || Transactions || Purchase Invoice || Header - Withholding field."
      • In this scenario, this type of withholdings will only be purchase type and therefore will be shown in the Multidimensional Tax Report just a part of the Purchase/Payments Transactions.

Functional Requirement 1 - Tables

"Invoice Taxes Report" data will be retrieved from the management tables listed below (Not from the accounting table FACT_ACCT) :

• c_invoice
• c_invoicetax
• c_debt_payment
• c_bankstatmentline
• c_cashline
• gl_journalline
• c_debt_payment_balancing

Functional Requirement 2 - Data

In order to get reliable tax data for the tax reports, we need to take into account below documents/transactions:

• "AP/AR Invoices & AP/AR Credit Memos" :
  • used to post either purchase or sales invoices and purchase or sales credit memos, which could contain Taxes Rates (such as VAT) and Withholdings Tax Rates entered in the "Tax" field in the Invoice Lines.
    • "Tax" and "Withholding" transactions related to those transactions must be captured by the Multidimensional Tax Report while posting the invoice by the accounting date, for more info see Use Case 1

The transaction listed below will be later on taken into account:

• "AP Invoice & AP Credit Memos":
  • used to post purchase invoices and purchase credit memos, which could contain a Withholding entered in the "Withholding" field located in the Purchase Invoice Header
    • This type of Withholding on Payment feature will be implemented later on as part of Advanced Payables & Receivables management development.

Tax Payment:

It is important to remark that in case of a "Tax Payment" end user should follow the steps described here.

Functional Requirement 3 - Accounting Date

Accounting date must be the date to take into account while retrieving tax transactions (*) see FR4 - Existing filters.

Functional Requirement 4 - Filters

Invoice Tax Reports currently has the following filter parameters:

Filter	Type	Mandatory	Description	New Requirements
From Date (*)	Date	YES	"From Date" to be entered by the end-user, system will retrieve tax transactions taken into account the "From Date" entered by the end-user.	Document/Transaction Accounting Date is the date to be taken into account.
To Date (*)	Date	YES	"To Date" to be entered by the end-user, system will retrieve tax transactions taken into account the "To Date" entered by the end-user.	Document/Transaction Accounting Date is the date to be taken into account.
Organization	Selector	YES	"Organization" to be selected by the end-user from a reference list, system will retrieve tax transactions for the Organization selected.	none
Show Invoice info	Check	NO	In case the end-user selects this check box below information must be displayed: Invoice Number Invoice Date Business Partner	This check must be renamed as: "Show Detail Info" as it should also allow the end user to get information about: Accounting Date Invoice Total Amount BP Country BP Region Besides: Invoice Number must be renamed as "Doc No" Invoice Date must be renamed as "Doc date"
Purchase Transaction	Radio Button	YES	In case the end-user selects this check system will retrieve tax transactions linked to purchase transactions	This check must be renamed as: "Purchase/Payment Transaction" because not only invoices must be taken into account but also payments
Sales Transaction	Radio Button	YES	In case the end-user selects this check system will retrieve tax transactions linked to sales transactions	This check must be renamed as: "Sales/Receipt Transaction" because not only invoices must be taken into account but also receipts, if any.
Both Transaction	Radio Button	YES	In case the end-user selects this check system will retrieve tax transactions regardless its type.	none

Following new filters are required to be implemented additionally, as shown in the screens below (screens which also includes those ones to be modified):

Screen 1 - in case the end-user choose the "Tax" radio button:

Screen 2 - in case the end-user choose the "Withholding" radio button:

Filter	Type	Mandatory	Description
Tax Withholding	Radio Button	YES	Tax or Withholding. In case end-user choose "Tax" - the system will retrieve the tax transactions linked to any of the Tax Rates setup at the application path: "Financial Management || Accounting || Setup || Tax Rate || Tax; do NOT setup as "Withholding Tax"; besides "Tax Rate" selector will be prompt. In case end-user selects "Withholding" - the system will retrieve the tax transactions linked to any of the Tax Rates setup at the application path: "Financial Management || Accounting || Setup || Tax Rate || Tax; setup as "Withholding Tax"; besides "Withholding Tax Rate" selector will be prompt.
Tax	Selector	NO	End-user will be able to select a Tax Rate; otherwise any Tax Rate will be taken into account while retrieving the tax transactions.
Withholding Tax Rate	Selector	NO	End-user will be able to select a Withholding Tax Rate; otherwise any Withholding Tax Rate will be taken into account while retrieving the tax transactions.
Business Partner	Multiple Selector	NO	This multiple selector will allow the end-user to select a specific group of BP’s, therefore the system will retrieve the tax transactions linked to them. If this filter is blank system will retrieve tax transactions regadless the BP/BPs those tax transactions are linked to.
Group by Business Partner	Check	NO	It this check is marked the report will show the tax information grouped by BP.

Functional Requirement 5 - Report Layout

The current tax information displayed is not clear enough and it does not help the end-user to manually filled-in tax reports; therefore output  layout must be re-designed the way it is described below:

Report - Header

Invoice Taxes Report must clearly state the transaction type for which tax information/transactions is being retrieved, therefore Header section must show any of the tax transaction types listed below:

• Sales/Receipts
• Purchase/Payments

Report - Lines

Multidimensional Tax Report must contain below information at lines level per each Tax or Withholding, in case "Show Details info" is checked:

Column	Type	Content
Name	Text	Tax or Withholding Name
Rate	Number	Tax Rate or Withholding %
Doc No	Text	Invoice number in case of invoice transactions, document number in case of payments/receipts
Doc Type	Text	Document type: AP/AR invoice, Payment, Receipt, etc..
Doc Date	Date	Invoice date in case of invoice transactions, document date in case of payments/receipts
Acct Date	Date	Accounting date
BP	Text	Business Partner
BP Country	Text	Business Partner Country
BP Region	Text	Business Partner Region
Taxable Amount (to be renamed as "Tax Base Amount")	Number	Tax Base Amount
Tax Amount	Number	Tax or Withholding Amount
Total Amount	Number	Total amount including tax and/or Withholding

Report - Sub-Totals

Above "Number" type columns but "Rate" must be sum-up in an additional report line in order to get below Sub-Totals:

• Total Tax Base Amount
• Total Tax Amount
• Total Amount

Report - Totals per Tax Category

Multidimensional Tax Report must also show under Sub-Totals line and before the next Report Summary section a "Totals" section per Tax Category.

End-user will be able to get information about:

The Summed-up Tax Base Amount, Tax Amount and number of BP per each Tax Category; split by Tax Rate (%), which means in the case of Spain:

• Tax Categories = VAT16%, VAT16%Services, VAT16%RealEstate, VAT7%, VAT7%Services, VAT7%RealEstate, VAT4%, VAT4%Services
• Tax Rates =
  • VAT Rates = 16%, 7%, 4%, 0,5%, 1%, 4% and 0%
  • Withholding Rates = 7%, 15%, 19% and 24%

Tax Category / Tax Name	Rate	Tax Base Amt	Tax Amt
VAT 16%	16
IVA 16% Import	16
IVA 16% National Purchase	16
IVA 16% National Purchase (RE 4%)	4
....others...
VAT 7%	7
IVA 7% Import	7
IVA 7% National Purchase	7
IVA 7% National Purchase (RE 1%)	1
....otros...

New!!! = There should also be a Business Partner summary per tax/withholding rate %, therefore end-user is informed about the number of BP related to a specific rate.

This information is useful for the Spanish tax report 110 in which the Number of BP related to a specific type of withholdings (either employment incomes or economics/professional services) must be submitted.

Report - Totals per Tax/Withholding rate (%)

Regardless the value selected in the "Tax or Withholding" radio button, Multidimensional Tax report must show below summary information at the end of the report, grouped first by Tax or Withholding Rate (including Tax Rate setup as "Withholding Tax" and "Withholdings") and besides by Business Partner in case the end-user selects that Filter:

Column	Type	Content
Name	Text	Tax or Withholding Name
Rate	Number	Tax or Withholding Rate
Total Tax Base Amount	Number	Total Tax Base amount per Tax or Withholding Rate
Tax Amount	Number	Total tax amount
Total Amount	Number	Total amount including Tax or Withholding amounts.
Number of BP	Number	Total sum of BP with the specific Tax or Withholding Rate (if a BP has several invoices, for example, with the same withholding the BP counts only once).

Report - Lines

Multidimensional Tax Report must contain below information at lines level per each Tax or Withholding Rate, in case "Show Deno Taxtails info" is NOT checked:

Column	Type	Content
Name	Text	Tax or Withholding Name
Rate	Number	Tax or Withholding Rate
Tax Base Amount	Number	Tax Base amount per Tax or Withholding Rate
Tax Amount	Number	Total tax amount per Tax or Withholding Rate
Total Amount	Number	Total amount including Tax or Withholding amounts.
Number of BP	Number	Total Sum of BP with the specific Tax or Withholding Rate (if a BP has several invoices, for example, with the same withholding the BP counts only once).

Multidimensional Tax Report must be export to Excel format by checking the corresponding "Menu" button"

Functional Requirement 6 - Tax and Withholding management

1. A Tax and Withholding tax Rate must be handle as a purchase tax in case of being setup as "Purchase Tax type" and in case of bein used in a:
   1. Purchase Invoice (AP Invoice / AP Credit Memo)

1. A Tax and Withholding tax Rate must be handle as sales tax in case of being setup as "Sales Tax type" and in case of bein used in a:
   1. Sales Invoice (AR Invoice / AR Credit Memo)

1. (*) A Withholding must be handle as a purchase withholding in case of being used in a:
   1. GL Journal window
   2. Purchase Invoice header

(*) As already described this feature is not part of the Advanced Payables & Receivables Management, which means that the Payment Plan do not currently handle withholding amounts but the total invoice amount (net amount + VAT amount), by example 100,00 € + 16,00 € in case of a 16% VAT).

Uses Cases

Use Case 1 - A Purchase/Sales Invoice including a Tax rate such as VAT and a Withholding Tax Rate

In this scenario the end-user needs to enter in the system a Purchase Invoice coming from a vendor/supplier (same would apply to Sales Invoices) containing VAT and/or Withholding Rates, for getting that done end-user should follow below steps:

• Go to Procurement Management // Transactions // Purchase Invoice // Header and create a new purchase invoice (Transaction Document = AP invoice)
• Go to Lines, create a new line by entering a services and make sure field Tax get a Tax Rate including VAT and a Withholding tax rate, by example "Prestación de Servicios Nacional 16% - 15% R"
• Once the Purchase Invoice is completed/posted, both the VAT and the Withholding amount are calculated and posted and can be found in the Tab = Tax
• Puchase Invoice Posting should look like:

250.00 Expense (60000)	252.50 Vendor (40000)
40.00 VAT (47200)	37.50 Withholding (47510)

• For getting the invoice paid, end user could use either "Make Payment" window or even use "Add Payment" process button which can be found in the Purchase Invoice window.

For this scenario both VAT and Withholding must be taken into account and therefore shown in the Multidimensional Tax Report as purchase transaction type, by the time the Invoice is posted, which means the Purchase Invoice Accounting Date.

Same applies to Sales Invoices, this time as sales transaction type.

Tax Report examples (M-303,M-110 and M-115)

As described above "Invoice Taxes Report" enhancements are based on Spanish Tax Requirements, regardless it could also be applied to other countries as the main goal is to provide the end-user with a tool to exploit tax information saved in the system.

As a real example or use case scenario, there are two Spanish Tax Report M-303 and M-110 end-user could manually filled in by using the Invoice Taxes Report enhanced as "Multidimensional Tax Report"

M-303 Use Case Scenario

M-303 tax report is a "VAT Settlement" tax report
It can be manually submitted by filling in the form which can be found here:

https://www2.agenciatributaria.gob.es/es13/h/ie93030b.html

M-303 tax report requires below data.

Overall Data section

End-user must enter/select information detailed below:

• Tax ID
• Company Name
• Period (Referece List : 1T, 2T, 3T or 4T)
• Year

Payable VAT section (in Spanish "IVA Devengado")

This section collects the Payable VAT coming from:

a) National sales invoices of goods & services split by VAT Rate (16%, 7% and 4%).

b) National sales invoices of goods & services under Equivalence Charge regimen split by VAT Rate (4%, 1%, 0,5%)

c) Intra-community purchase of goods summed-up and do not split by VAT Rate

For getting above information end-user should run Multidimensional Tax Report by selecting:

• "Tax" Radio button selected.
• No Tax in the "Tax Selector"
• No BP in the "BP Selector"
• "Show Details Info" flag selected
• "Grouped by BP" flag do not selected
• "Sales/Collection Transactions" Radio button selected.

a) National Sales invoices of goods&services split by VAT Rate (16%, 7% and 4%).

End-user should get and fill in Sales VAT information: Tax Base Amount and Tax Amount , coming from any sales transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up and split by VAT rate (16, 7 or 4) and taking into account the Invoice Accounting Date.

Tax Categories :

• VAT16%, VAT7%, VAT4%, excluding Intra-Community VAT related tax rates (both Intra-Community Purchase and Intra-Community Sales tax rates)
• VAT16%Services, VAT7%Services, VAT4%Services excluding "Reversed Charge" rates (In Spanish "Inversión de Sujeto Pasivo").
• VAT16%RealEstate, VAT7%RealEstate.

b) National Sales invoices of goods&services under Equivalence Charge regimen summed-up and split by VAT Rate (4%, 1%, 0,5%)

End-user should get and fill in Sales VAT information: Tax Base Amount and Tax Amount , coming from any sales transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up and split by VAT rate (4%, 1%, 0,5%) and taking into account Invoice/Manual Settlement Accounting Date.

Tax Categories:

• VAT16%, VAT7%, VAT4%.
• VAT16%Services, VAT7%Services, VAT4%Services if any

c) Intra-community purchase of goods summed-up and do not split by VAT Rate.

End-user should get and fill in Purchase VAT information: Tax Base Amount and Tax Amount , coming from any purchase transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up regardless VAT rate (16, 7 or 4)

Tax Categories:

• VAT16%, VAT7%, VAT4%, just for Intracommunity Purchase VAT Rates.

Deductible VAT section (in Spanish "IVA Deducible"):

This section collects the VAT which can be deductible 100% (otherwise VAT proportion rules must be applied) related to:

a) National Purchase of Goods/Services

b) National Purchase of Real Estate

c) Import of Goods/Services

d) Import of Real Estate

e) Intra-community Purchase of Goods/Services

f) Intra-community Purchase of Real Estate

For getting above information end-user should run Multidimensional Tax Report by selecting:

• "Tax" Radio button
• No Tax in the "Tax Selector"
• No BP in the "BP Selector"
• "Show Details Info" flag selected
• "Grouped by BP" flag do not selected
• "Purchase/Payment Transactions" flag selected.

a) National Purchase of Goods/Services:

End-user should get and fill in Purchase VAT information: Tax Base Amount and Tax Amount , coming from any purchase transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up regardless of VAT rates (16, 7 or 4)

Tax Categories:

• VAT16%, VAT7%, VAT4% , excluding Intra-Community Purchase VAT rates and Import VAT rates.
• VAT16%Services, VAT7%Services and VAT4%Services, Excluding "Reversed Charge" rates (In Spanish "Inversión de Sujeto Pasivo").

b) National Purchase of Real Estate:

End-user should get and fill in Purchase VAT information: Tax Base Amount and Tax Amount, coming from any purchase transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up regardless of VAT rates (16, 7 or 4)

Tax Categories:

• VAT16%RealEstate, VAT7%RealEstate

c) Import of Goods/Services:

End-user should get and fill in Purchase VAT information: Tax Base Amount and Tax Amount c, coming from any purchase transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up regardless of VAT rates (16, 7 or 4)

Tax Categories:

• VAT16%, VAT7%, VAT4%, excluding National Purchase rates and Intra-community Purchase rates and excluding "Reversed Charge" rates (In Spanish "Inversión de Sujeto Pasivo").

d) Import of Real Estate:

End-user should get and fill in Purchase VAT information: Tax Base Amount and Tax Amount , coming from any purchase transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up regardless of VAT rates (16, 7 or 4)

Tax Categories:

• VAT16%RealEstate, VAT7%RealEstate

e) Intra-community Purchase of Goods

End-user should get and fill in Purchase VAT information: Tax Base Amount and Tax Amount, coming from any purchase transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up regardless of VAT rates (16, 7 or 4)

Tax Categories:

• VAT16%, VAT7%, VAT4%, excluding National Purchase rates and Import Purchase rates.

f) Intra-community Purchase of Real Estate

End-user should get and fill in Purchase VAT information: Tax Base Amount and Tax Amount, coming from any purchase transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up regardless of the VAT rates (16, 7 or 4)

Tax Categories:

• VAT16%RealEstate, VAT7%RealEstate, excluding National Purchase rates and Import Purchase rates.

VAT Settlement section (In Spanish "Liquidación"):

This sections collect exempt or not-subject to VAT transactions like:

a) Intracommunity Sales of Goods

b) Export of Goods

c) Reverse Charge

For getting above information end-user should run Multidimensional Tax Report by selecting:

• "Tax" Radio button
• No Tax in the "Tax Selector"
• No BP in the "BP Selector"
• "Show Details Info" flag selected
• "Grouped by BP" flag do not selected
• "Both Transactions" flag selected.

a) Intra-Community Sales of Goods:

End-user should get and fill in Sales VAT information: Tax Base Amount as these are VAT Exempt Transactions, coming from any sales transaction linked to the VAT rates belonging to the Tax Categories shown below:

Tax Categories:

• Exempt, excluding National Sales rates and Export rates.
• VAT16%, VAT7%, VAT4% , excluding National Sales rates and Export rates.

b) Export of Goods:

End-user should get and fill in Sales VAT information: Tax Base Amount as these are VAT Exempt Transactions, coming from any sales transaction linked to the VAT rates belonging to the Tax Categories shown below:

Tax Categories:

• Exempt, excluding National Sales rates and Intra-Community Sales rates.
• VAT16%, VAT7%, VAT4% , excluding National Sales rates and Intra-Community Sales rates.

c) Reverse Charge:

End-user should get and fill in Purchase VAT information: Tax Base Amount as these are not-subject to VAT Transactions, coming from any purchase transaction linked to the VAT rates belonging to the Tax Categories shown below.

Tax Categories:

• VAT16%Services, VAT7%Services, VAT4%Services, just in case of Reverse Charge.
• VAT16%, VAT7%, VAT4%, just in case of Reverse Charge.

Rest of Form fields are calculated fields within Tax Form.

M-110 Use Case Scenario

M-110 is a "Withholding Tax Report" which contains information about certain Monetary and Non-Monetary Incomes subject to withhold.

It can be manually submitted by filling in the form which can be found here:

http://www.aeat.es/AEAT/Contenidos_Comunes/La_Agencia_Tributaria/Modelos_y_formularios/Declaraciones/Modelos_100_al_199/110/mod110e.pdf

M-110 tax report requires below data.

Overall Data section

End-user must enter information detailed below:

• Tax ID
• Company Name
• Period
• Year

Withholding Settlement section (In Spanish "Liquidación")

This sections collects withholdings grouped based on incomes type, which are listed below:

a) Employment monetary and non-monetary income

- Organizations are required to withhold a certain % at the time these incomes are paid to their employees.

b) Economic activities monetary and non-monetary incomes

- Professionals or Companies are required to include in their sales invoices a withholding %. The withholding amount is withheld by the customer in the payment to the supplier (professionals or companies).

c) Prizes monetary and non-monetary incomes are also subject to withholding

d) Capital gains monetary and non-monetary incomes are also subject to withholding

e) Image rights transfers monetary and non-monetary incomes are also subject to withholding

Withholding information/transactions must be grouped by withholding or withholding rate, therefore end-user must create:

• Different withholdings rates per each income type (economic activities, prizes, capital gains and image rights)
• And besides different withholding rates for monetary incomes and for non-monetary incomes of each income type.

Withholding setup example:

• summary Tax Rate (Purchase Type) = Prestación servicios nacional 16% -15%R
  • child Tax Rate (Purchase Type) = Prestación servicios nacional 16% -15%R (-15%) - setup as Withholding Tax Rate.
  • child Tax Rate (Purchase Type) = Prestación servicios nacional 16% -15%R (+16%) - do not setup as Withholding Tax Rate, as this one is VAT.

We should setup,same way and as appropiate:

• Summary Tax Rate (Purchase Type) = Monetary Economic Activity Withholding 16% -15%R (-15%)
• Summary Tax Rate (Purchase Type) = Non-Monetary Economic Activity Withholding 16% -15%R (-15%)
• Summary Tax Rate (Purchase Type) = Monetary Economic Activity Withholding 16% -7R (-7)
• Summary Tax Rate (Purchase Type) = Non-Monetary Economic Activity Withholding 16% -7%R (-7%)
• and so on so forth.....

Let's explain most common ones:

a) Employment monetary and in kind incomes

Example: Payroll being paid to an employee.

It is important to remark that OB is not managing Human Resources, therefore this information can not be obtained from the system.

b) Economic activities monetary and in kind incomes.

Example: Professional Services or any other kind of economic activity supplied by a BP

This kind of transactions can be entered in the system by using a purchase invoice including the corresponding Withholding Tax Rates.

Purchase Invoice - See Use Case 1

For getting above information end-user should run Multidimensional Tax Report by selecting:

• "Withholding" Radio button
• No Withholding , no "Withholding Tax Rate", therefore the system will show tax transactions linked to both withholding types.
• No BP in the "BP Selector"
• "Show Details Info" flag selected
• "Grouped by BP" flag selected
• "Both Transactions" flag selected.

a) Employment Section

n/a

b) Economic activities Section

End-user should get and fill in below information per withholding rate (by example = Monetary Economic Activity Withholding 15%) or withholding (by example = Non-Monetary Economic Activity Withholding 15%)

1. Total number of BP
2. Total Tax Base amount
3. Total Withholding amount

M-115 Use Case Scenario:

M-115 is a "Withholding Tax Report" which contains information about renting incomes subject to withholding

It can be manually submitted by filling in the form which can be found here:

http://www.aeat.es/AEAT/Contenidos_Comunes/La_Agencia_Tributaria/Modelos_y_formularios/Declaraciones/Modelos_100_al_199/115/mod115multidiomas.pdf#zoom=100

M-115 tax report requires below data.

Overall Data section

End-user must enter information detailed below:

• Tax ID
• Company Name
• Period
• Year

Withholding Settlement section (In Spanish "Liquidación")

1. Total number of BP
2. Total Tax Base amount
3. Total Withholding amount

Withholding information required as shown above must be grouped by withholding or withholding rate. It is required that the end-user creates different withholding rates for each renting income subject to a different withholding %, Withholding setup example:

• Withholding Tax Rate = Renting -19% - linked to the corresponding BP Tax Category.
• Withholding Tax Rate = Renting -9% (Ceuta o Melilla) - linked to the corresponding BP Tax Category

This kind of transactions must be entered in the system as a purchase invoice.

a) Settlement Section

End-user should get and fill in below information per withholding rate (by example = Renting 19%) or withholding (by example =Renting 9%)

1. Total number of BP
2. Total Tax Base amount
3. Total Withholding amount

Research on tax Spanish Tax Reports M-180

M-180 is the Annual version of M-115

For this one end-user should define year range, grouped by BP and showing details.