Reporting VAT in Mexico with ACR: Understanding the Configurations and Output of the VAT Declaration Report

[henrique_toriello2]

The VAT Declaration (MX_VAT_REP) report is one of the legal requirements that companies are asked to submit to SAT (legal authority) in Mexico.

To run this report with Advanced Compliance Reporting (ACR), you need to go through some configuration settings that are specific to the report. In this blogpost, you’ll learn what are the configuration settings required for the VAT Declaration report as well as what is the logical structure of the output file of the report.

Configuration:

Let’s start with the configurations you’ll need to go through to run the report in SAP S/4HANA:

You’ll find a comprehensive list of the configuration setting of the report here, including the configuration of VAT target tax codes into tax boxes with examples.

Once you’re done with the configurations, you’ll be ready to run the report and generate the ALV output.

ALV Output:

The ALV output of the report is structured according to the Determinación del Impuesto al Valor Agregado (page 4-6) section that is contained in the Declaración Provisional o Definitiva de Impuestos Federales SAT form.

Below we bring you an overview of the output ALV so that you can understand how each one of the fields is calculated. You can use this table as a reference whenever you’re in doubt about where the values contained in your ALV output come from.

Element Name	Label in English	Business Explanation
FIMX_S_VAT	VAT Determination	Section
SUMMARY	Amounts from Paid Transactions	Subsection
TOTAL_AMT_16_--25_VAT	Total Amount for Transactions Paid with 16% VAT	Total Amount for Transactions paid with 16% VAT (Input) + Total Amounts for Import Transactions with 16% VAT (Input) + Total Amounts for Transactions Paid with 16% VAT (Output)
TOTAL_AMT_IMP_16_--25_VAT	Total Amount for Import Transactions with 16% VAT	Total Amounts for Import Transactions with 16% VAT
TOTAL_AMT_0_--25_VAT	Total Amount for Transactions Paid with 0% VAT	Total Amounts for Transactions Paid with 0% VAT
TOTAL_AMT_VAT_EXEMPT	Total Transactions Paid with VAT Exempt	Amount of Exempted (Non-Taxed) Transactions
DETAILS_ACT_16	Details of Total Amount for Transaction paid with 16% VAT	Subsection
INTERESTS_PAID_16_--25_IP_VAT	Interests Paid with 16% VAT	Total amount of tax box 1
ROYALTIES_16_--25_IP_VAT	Royalties Paid among Related Parts with 16% VAT	Total amount of tax box 2
OTHER_TRANSACTIONS_16_--25_IP_VAT	Other Transactions Paid with 16% VAT	Total amount of tax box 3
TOTAL_16_--25_INPUT_VAT	Total Amount for Transactions paid with 16% VAT	Sum of tax boxes 1, 2, 3
DETAILS_IMP_TAX_16	Details of Total Amounts for Transactions Paid for Assets Import and Services with 16% VAT	Subsection
INTANGIBLE_ASST_IMPORT_16_--25_IP	Intangible Assets Import with 16% VAT	Total amount of tax box 4
TEMPORAL_IMPORTS_16_--25_IP_VAT	Temporary Import of Assets with 16% VAT	Total amount of tax box 5
SERVICES_IMPORT_16_--25_IP_VAT	Services Import with 16% VAT	Total amount of tax box 6
OTHER_IMPORT_TRANASCT_16_--25_IP	Other Import Transactions with 16% VAT	Total amount of tax box 7
TOTAL_16_--25_IMPPORT_IP_VAT	Total Amounts for Import Transactions with 16% VAT	Sum of tax boxes 4, 5, 6, 7
DET_TAX_AGGR_CRED	Tax on Creditable VAT	Subsection
TOTAL_16_--25_VAT	Total VAT for Amounts of Transactions Paid with 16% VAT	Total Amount for Transactions paid with 16% VAT (Input)
TOTAL_IMP_TRANSACT_16_--25_VAT	Total VAT for Import-Related-Transactions with 16% VAT	Total Amounts for Import Transactions with 16% VAT (Input)
TOTAL_16_--25_VAT_TRANSFERRED	Total VAT Transferred to Taxpayer (Effectively Paid)	Total VAT for Amounts of Transactions Paid with 16% VAT(Input)  + Total VAT for Import-Related-Transactions with 16% VAT (Input)
VAT_TRANSF_PUR_FOR_TAXED_TRANS	VAT Transferred for Purchases Related to Taxed Transactions	Total amount of tax box 8
VAT_IMP_PUR_TAXED_TRANS	Paid VAT for Imports of Purchases Related to Taxed Transactions	Total amount of tax box 9
VAT_TRANSF_INVESTMNT_FOR_TAXED	Transferred VAT due to Acquisition of Investments Related to Taxed Transactions	Total amount of tax box 10
VAT_IMP_INVESTMT_FOR_TAXED	Paid VAT for Import of Investments Related to Taxed Transactions	Total amount of tax box 11
TOTAL_VAT_ALL_TRANS_TAXED	Total VAT Related to Taxed Transactions	Sum of tax boxes 8, 9, 10, 11
VAT_TRANSF_PUR_NONTAXED_TRANS	Transferred or Paid VAT for Acquisition of Assets from Investments Related to Non-Taxed Transactions	Total amount of tax box 12
VAT_IMP_PUR_NONTAXED_TRANS	Transferred or Paid VAT for Import of Investments Related to Non-Taxed Transactions	Total amount of tax box 13
VAT_FOR_TAXED_NONTAXED_TRANS	VAT of Non-Taxed Assets that are Related to Taxed Transactions	Total amount of tax box 14
PROPORTN_FOR_ARTICLE_5_OF_LIVA	Proportion Used According to Article 5 of the VAT Law (LIVA)	(Total VAT for Amounts of Transactions Paid with 16% VAT (Input) + Total Amounts for Transactions Paid with 0% VAT (Output)) / (Total VAT for Amounts of Transactions Paid with 16% VAT (Input) + Total Amounts for Transactions Paid with 0% VAT (Output) + Amount of Exempted (Non-Taxed) Transactions)If result is 1, report will show as 0. Otherwise, will report the calculated factor
PROPORTN_FOR_ARTICL_5B_OF_LIVA	Proportion Used According to Article 5B of the VAT Law (LIVA)	User input in report's selection screen
VAT_CRED_FOR_TAXED_NONTAXED_TR	Creditable VAT Used for Taxed and Non-Taxed Transactions	User input in report's selection screen
VAT_CREDITABLE	Creditable VAT	If total amount of tax box 16 is not 0, then result = (Tax Box 16 * Total VAT Related to Taxed Transactions)Otherwise, if total amount of tax box is 0, but Proportion Used According to Article 5 of the VAT Law (LIVA) is not 0, then result = (Total VAT Related to Taxed Transactions *  Proportion Used According to Article 5 of the VAT Law (LIVA))
REVALUATED_VAT_AMT	Creditable Amount Updated to Increase Derived Adjustment	User input in report's selection screen
TOTAL_CREDTABLE_DEDUCTABL_VAT	Total Creditable VAT of the Period	Total Creditable VAT of the Period
DET_TAX_AGGR_VALUE	VAT Determination	Subsection
TOTL_TAXED_WITH_16_--25_OUTPUT_VAT	Total Amount for Transactions with 16% VAT	Total Amounts for Transactions Paid with 16% VAT (Output)
TOTL_EXP_TAXED_0_--25_OUTPUT_VAT	Total Amount for Export Transactions with 0% Output VAT	Total Amounts for Transactions Paid with 0% VAT (Output)
TOTL_TAXED_WITH_0_--25_OUTPUT_VAT	Total Amount for Other Transactions with 0% Output VAT	Total Amounts for Transactions Paid with 0% VAT (Output)
TOTL_ALL_TRANS_TAXED	Total Summation of Taxed Transactions	Total Amounts for Transactions Paid with 16% VAT (Output) + Total Amounts for Transactions Paid with 0% VAT (Output)
TOTL_TRANS_VAT_EXEMPT	Amount of Exempted (Non-Taxed) Transactions	Sum of tax boxes 12, 13, 14
TOTL_OUTPUT_VAT_TAX	Total Caused Tax	Total Amounts for Transactions Paid with 16% VAT (Output) * 16%
QUANT_REVALUATED_RETRN_TO_COMP	Amount Updated to Reintegrate Derived Adjustment	User input in report's selection screen
TOTAL_CREDITABLE_DEDUCTABL_VAT	Total of Creditable VAT	Sum of tax boxes 17 and 18
OTHR_AMT_PAYABLE_OF_COMP	Other Amounts in charge of Taxpayer	User input in report's selection screen
OTHR_AMT_RECEVBLE_OF_COMP	Other Amounts in favor of Taxpayer	User input in report's selection screen
TOTAL_VAT_PAYBLE_AMT	Payable Amount	If Total Amounts for Transactions Paid with 16% VAT (Output) 16% > Total Creditable VAT of the Period, then result = (Total Amounts for Transactions Paid with 16% VAT (Output) - Total Creditable VAT of the Period)
TOTAL_VAT_RETURN_AMT	Credit Balance	Total Creditable VAT of the Period - Other Amounts in charge of Taxpayer + Other Amounts in favor of Taxpayer
IMMEDIATE_VAT_RETURN_OBTAINED	Obtained Immediate VAT Return	Total amount of tax box 24
TOTL_VAT_RETURN_AMT_OF_PERIOD	Credit Balance of the Period	Credit Balance + Total amount of tax 20
PREV_PERIOD_TAX_RECEIVABLE	Return of Credit Balance from Previous Periods (Without Exceeding Amount in Charge)	User input in report's selection screen
DIFF_PAYABLE	Payable Difference	If Total Caused Tax > Credit Balance of the Period, then result = (Credit Balance of the Period - Total amount of tax box 21)
IEPS_TAX_CR_DEDUC_OF_ALCOHOL	Remaining IEPS Credit Balance of Alcohol Products Other than Beverages	IEPS Credit Balance of Alcohol Products Other than Beverages
PAYABLE_VAT	Payable Tax	If total of tax box 22 > Payable Difference, then result = 0.Otherwise, result = Payable Difference - Total amount of tax box 22
REMAIN_OF_IEPS_TAX_CR_DEDUCT	IEPS Credit Balance of Alcohol Products Other than Beverages	If total amount of tax box 22 > Payable Difference, then result = (total amount of tax box 22 - Payable Difference)If result < 0, result will be reported as 0
DETAILS_ACT_VALUE_16	Details of Total Amount for Transaction paid with 16% VAT	Subsection
INTRST_PAID_16_--25_OUTPUT_VAT	Interests Paid with 16% VAT	Total amount of Tax Box 28
ROYALTIES_16_--25_OUTPUT_VAT	Royalties Paid among Related Parts with 16% VAT	Total amount of Tax Box 29
OTHER_TRANS_16_--25_OUTPUT_VAT	Other Transactions Paid with 16% VAT	Total amount of tax box 30
TOTAL_16_--25_OUTPUT_VAT	Total Amounts for Transactions Paid with 16% VAT	Sum of tax boxes 28, 29, 30
DETAILS_ACT_VALUE_16	Details of Total Amount for Transactions Paid with 0% VAT	Subsection
AGR_FORSTRY_LIVSTCK_0_--25_OUTPUT	Agricultural, Livestock, Forestry, and Fishing Activities Taxed with 0% VAT	Absolute total amount of tax box 31
OTHER_TRANS_0_--25_OUTPUT_VAT	Other Transactions Paid with 0% VAT	Absolute total amount of tax box 32
TOTAL_0_--25_OUTPUT_VAT	Total Amounts for Transactions Paid with 0% VAT	Sum of tax boxes 31 and 32

Hints:

1. The SAT form still has fields related to 11% VAT, which are no longer required to be reported, so these are not present in the ACR report.


2. The SAT form field ‘IVA Retenido al Contribuyente’ (VAT withheld from the taxpayer) is not present in the report because this information is provided by others reports that are specific for withholding tax.


3. If you are logged in Spanish, you’ll see that the ACR field descriptions are very similar to the SAT form. So, we recommend that you use this language to validate and print the report’s results.

For more information about the VAT Declaration report and other legal reports available in SAP S/4HANA with ACR, visit the documentation in the SAP Help Portal: help.sap.com/viewer/s4h_op_mexico.

Do you have questions about VAT reporting for Mexico in ACR? Check our SAP FAQ Note for VAT Reporting.

If you still got questions, you may also leave a comment to this blog and we’ll reply you asap.

If you feel you need further support, you can open a ticket for SAP in the SAP Support Portal, under the FI-LOC-FI-MX component.

See you next time,

Henrique

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