Tax Report Preparation: General Information
If your organization is engaged in business activity, you must file a tax report to each applicable tax agency once per reporting period. The reporting period is prescribed by the tax agency.
Learning Objectives
From reading the topics in this chapter and completing the process activity, you will learn how to prepare a tax report for a particular company and tax agency for an open tax period.
Applicable Scenarios
You prepare a tax report for an open tax period if the previous tax period has been closed and after the tax period to be reported on has ended.
Preparation of a Tax Report for an Open Reporting Period
MYOB Advanced provides functionality that simplifies the process of tax calculation and tax report preparation. You can configure the tax report according to the requirements of the respective tax agency (for details, see Tax Agency), set up tax calculation rules, and then generate a tax report.
In MYOB Advanced, you can prepare a tax report for a particular tax agency. A tax report can be prepared either for an open reporting period or for a closed reporting period if the Update Closed Tax Periods check box is selected for the tax agency on the Tax Agency tab of the Vendors (AP303000) form. The frequency of preparing tax reports depends on the setting that you specify for the tax agency in the Default Tax Period Type box on the Vendors form. This setting can be overridden for the particular company on the Tax Periods (TX207000) form.
If your tenant contains multiple companies (and if a company type is With Branches Requiring Balancing), you can prepare a tax report for each particular company or for a particular branch if you file taxes by branch—that is, if the File Taxes by Branch check box is selected for the company on the Companies (CS101500) form. If you report taxes by branches for a company, you need to prepare tax reports for all branches of the company and then close the tax period for the company.
To prepare a tax report for an open reporting period, on the Prepare Tax Report (TX501000) form, you should select the required company and branch (if you report taxes by branches), the tax agency, and the reporting period. You can select a period on this form if the Update Closed Tax Periods check box is selected for the tax agency on the Tax Agency Settings tab of the Vendors (AP303000) form. If the check box is cleared, the first open tax period is selected automatically by the system and disabled.
The tax report structure that was previously configured for the selected tax agency appears with the tax amounts and taxable amounts inserted into its lines. The system recalculates these values each time a user opens the Prepare Tax Report form, based on the taxable documents released in the system.
To initiate tax report preparation, you click Prepare Tax Report on the form toolbar of the Prepare Tax Report form. The system prepares the tax report and opens the Release Tax Report (TX502000) form.
When you prepare the report for the first period of the tax year, the system generates periods with the Open status for this year. On the Tax Periods (TX207000) form, you can review the periods that have been generated by the process (or that will be generated if you select an upcoming year on the form).
If a user voids a tax report run for the first period of the tax year, the system deletes the tax periods for this year. This process is demonstrated in Voiding of a Sales Tax Report: Process Activity.
Tax Report Revisions
On the Release Tax Report (TX502000) form, you can prepare a tax report for the same or a closed reporting period if the Update Closed Tax Periods check box is selected for the tax agency on the Tax Agency tab of the Vendors (AP303000) form. Each time you prepare a tax report for a closed period, the revision number displayed in the Revision box on the Release Tax Report form is incremented by 1.
On the Release Tax Report form, you can also view the details of different revisions of the tax report that have been prepared for the same or closed reporting period. On this form, in the Revision box, you can review all possible revisions of this tax report. You can select any number in the box to view the respective report details. For more information, see Purchases with Use Taxes: Process Activity and VAT for Early Payments: To Prepare a New Revision of VAT Tax Report.