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EDIFACT message guide · Customs and regulatory

VATDEC Value added tax

The UN/EDIFACT message a taxpayer or its agent uses to submit VAT declarations to the national VAT collecting authority.

Sent by
Taxpayer or its tax representative
Received by
National VAT authority
Standard
UN/EDIFACT · Batch message
X12 equivalent
No direct equivalent

What is the EDIFACT VATDEC message?

VATDEC is the UN/EDIFACT value added tax declaration message. The directory defines it as a message that transfers data from a declarant to a national VAT collecting authority to meet legislative and operational requirements for VAT declarations. The declarant may be a taxpayer or an agent acting for one.

A VAT declaration reports taxable sales and purchases, output and input VAT and the net amount due or reclaimable for a period. Many authorities now prescribe their own electronic formats or portals, so VATDEC is used where the authority accepts it.

How the EDIFACT VATDEC message worksDiagram of the UN/EDIFACT VATDEC Value added tax message. Taxpayer or its tax representative sends it to national VAT authority. It usually starts the exchange. Inside the UNB and UNH envelopes, the directory D.21A requires, in the start of message: BGM (Beginning of message) and body and segment groups: the required SG1 loop with NAD (Name and address). 4 conditional segment groups are listed by their trigger segment.How the EDIFACT VATDEC message worksValue added tax: who sends it, where it fits and what the directory marks mandatory1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeVATDECSENDERTaxpayer or its taxrepresentativeRECEIVERNational VAT authorityCONTRL syntax report back, if agreedUSUALLY FOLLOWED BYNo business reply expected2 WHAT DIRECTORY D.21A REQUIRESInterchange: sender and recipient IDsUNB … UNZMessage VATDECUNH … UNTSTART OF MESSAGEBGMBeginning of messageBODY AND SEGMENT GROUPSMandatory group SG1 · repeats up to 9,999NADName and address+ 4 conditional groups, starting with:CTARFFDTMAUTBlue box: mandatory segment group. Conditional groups are listed by the trigger segment that starts them; a group is sent only when its data applies.Conditional segments outside groups are not drawn.Structure: mandatory segments and groups in the UN/EDIFACT directory D.21A listing for VATDEC. Your trading partner's implementation guide adds itsown requirements.
How the EDIFACT VATDEC message worksDiagram of the UN/EDIFACT VATDEC Value added tax message. Taxpayer or its tax representative sends it to national VAT authority. It usually starts the exchange. Inside the UNB and UNH envelopes, the directory D.21A requires, in the start of message: BGM (Beginning of message) and body and segment groups: the required SG1 loop with NAD (Name and address). 4 conditional segment groups are listed by their trigger segment.How the EDIFACT VATDECmessage worksValue added tax: who sends it, where it fits andwhat the directory marks mandatory1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeVATDECSENDERTaxpayer or itstaxrepresentativeRECEIVERNational VATauthorityCONTRL syntax report back, if agreedUSUALLY FOLLOWED BYNo business reply expected2 WHAT DIRECTORY D.21A REQUIRESInterchange: sender and recipient IDs(UNB … UNZ)Message VATDEC (UNH … UNT)START OF MESSAGEBGMBeginning of messageBODY AND SEGMENT GROUPSMandatory group SG1 · repeats upto 9,999NADName and address+ 4 conditional groups, starting with:CTARFFDTMAUTBlue box: mandatory segment group. Conditionalgroups are listed by the trigger segment thatstarts them; a group is sent only when its dataapplies. Conditional segments outside groups arenot drawn.Structure: mandatory segments and groups in theUN/EDIFACT directory D.21A listing for VATDEC.Your trading partner's implementation guide adds itsown requirements.

How to read this diagram: the top row shows who sends VATDEC, to whom, and which messages usually come before and after it. The lower part shows what the directory D.21A itself requires: the envelopes around VATDEC and the segments and segment groups it marks mandatory. Conditional groups are listed by their trigger segment rather than drawn in full. This is the directory's minimum, not a trading partner's requirement: a message implementation guide, such as an industry subset or a partner’s own guide, usually makes some conditional groups mandatory, restricts the codes and may use an older directory.

Expand diagram Download SVG

When it is used

  • Filing periodic VAT returns
  • Filing returns as a tax representative for clients
  • Correcting previous declarations

Where it fits in the message flow

This message VATDEC Value added tax

No other message routinely comes directly before or after VATDEC; it is exchanged when the business event occurs. If the partners agree, the receiver confirms each interchange with a CONTRL syntax and service report.

Structure

Mandatory segments in VATDEC (directory D.21A)

In UN/EDIFACT directory D.21A, the VATDEC message has 43 segment positions arranged in 12 segment groups. These are the segments and segment groups marked mandatory at message level, in order; a mandatory group is shown with the segment that starts it. Segments inside conditional groups are needed only when the group is used. This is the directory’s requirement, not your trading partner’s: each partner’s message implementation guide names the directory it uses, often an older one such as D.96A or D.01B where the structure can differ, makes some conditional segments mandatory and restricts the codes.

  • UNH
  • BGM
  • SG1 (NAD)
  • UNT

Practical example

VATDEC in practice

A tax advisory firm files monthly VAT returns for 200 clients. Its software extracts each client's totals and sends the tax authority a VATDEC per client with taxable amounts, output and input VAT and the balance due. The authority confirms receipt and the firm records the filing reference.

Implementation

Implementation considerations for VATDEC

  • Check whether the authority accepts VATDEC or prescribes another format.
  • Reconcile declared figures with the accounting ledgers.
  • Meet the filing deadline for each declaration period.
  • Keep the authority's filing confirmations for audit.

How ECOM helps

Automate VATDEC with ECOM

Solution

Financial Document Automation

Automate invoices, remittances, payment files and bank statements from capture to posting.

Industry

Financial Services

Secure file transfer and B2B integration for banks and financial institutions.

Solution

EDI Integration

Exchange X12 and EDIFACT documents with partners and integrate them directly with your ERP.

Compare X12 and EDIFACT, or see answers to general questions in the EDI FAQ.

Related messages

Related customs and regulatory messages

All 14 customs and regulatory messages

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