Skip to main content
Work with returns
Search
Search Indirect Tax Support Help and Support.

This article applies to:

  • Product: ONESOURCE Indirect Tax Compliance

Corrective return examples

The legislation around when or if corrective returns should be submitted and relevant thresholds differ widely from country to country. Possible scenarios are described below.
Scenario 1: New return to be submitted with all data and old return maintained - periodic return form used.
  1. User copies dataset to create corrective return, purpose should be set as "Corrective return".
  2. User unlocks original return or uses copied dataset depending on client/leg requirements.
  3. User makes edits/imports new data.
This means the template used will be the correct one for the year rather than defaulting to a new template (if the return form has changed). If a new form is needed, select Upgrade at the prompt when opening the calculation.
  • No new or edited transactions will be uploaded for read-only returns. You will see new imported transactions when you drill down to transaction. A warning will show in the submitted return stating that new data has been imported.
  • Alternatively, import only changed transactions (run by change date in SAP) or make manual adjustments to transaction if allowed in country.
  • You can select which return to bring forward to next period return using Manage Sources.
Scenario 2: Legislation in country requires actual old return to be amended and resubmitted.
The user can choose to print the old return to keep a copy of the original submission, then amend/reimport data, submit return OR follow 1 above.
If old return: move the status back to Draft, make changes/re-import/delete the old import as required, then resubmit.
Scenario 3: Amended transactions to be included in current period return (can be due to limit on amount).
  1. User needs to import a list of amended transactions from ERP. Reporting Date should be in the current period (normally the case in e.g. SAP as Posting date will be changed if e.g. credit note issued) OR user can make changes to the invoice in ONESOURCE Indirect Tax Compliance and defer to the future period.
  2. Once the Reporting Date is changed/deferred to the current period, transactions are automatically included in the return.
Scenario 4: Special form or other submission (e.g. letter to HMRC) required for relevant country.
ONESOURCE Indirect Tax Compliance
provides the information below to serve as background information for a letter/other form.
  • A Calculation of what the return should be when corrections are included (by the same process as in Scenario 1, above).
  • Provide visibility of transactional data that can be filtered in several ways and queries can be run (custom reports if it is a specific client scenario that occurs frequently.
Scenario 5: Special form/letter is required, along with a calculation of the difference in amount (old, difference, new value).
ONESOURCE Indirect Tax Compliance
 provides the information below to serve as background information for a letter/other form.
  • A Calculation of what the return should be when corrections are included (by the same process as in Scenario 1, above).
  • Provide visibility of transactional data that can be filtered in several ways and queries can be run (custom reports if it is a specific client scenario that occurs frequently.
Other
  • Corrective ESLs/supplementary returns/Intrastats: same process as above. Different thresholds for submitting corrective statistical reports are common.
    ONESOURCE Indirect Tax Compliance
    covers the process as per above, and clients can choose when/if to submit them.
Scenario 6:
Before creating a corrective return, please ensure that all calculations in the source dataset are set to read-only.
document properties alert message to ensure calculations are read-only
This is a new alert message to prevent you from creating corrective returns when the original return is still in draft or editable status.
Additionally, the following alert messages are displayed if the user attempts to modify the status of the original return after a corrective return has been created:
  • When you try to change the return status using the
    More
     menu in the Returns screen, the following message appears: “
    Status cannot be changed for one or more returns as they have corrective returns.*
    returns message status cannot be changed
  • When you try to change the return status from the workbook, the following message appears: “
    Status cannot be changed as this return has a corrective return
    .”
  • If you delete the corrective return, the status of the original return can be changed to draft or other editable status
  • There is no restriction in changing the status of the original return from one non-editable status to another non-editable status eg: Ready for Review>>Signed off>Final
  • The messages are displayed for the corrective returns that are created post August release.
These measures help to prevent data inconsistencies, ensuring smoother operations and maintaining data accuracy.
Other use cases where the alert is not triggered:
  • Use case 1:
    If you try to create a corrective for a period other than the original return then the alert message is not displayed, and the system allows the creation of corrective return.
  • Use Case 2:
    If you create a copy of original dataset and selects the return purpose other than corrective return, the system doesn’t display alert message.
  • Use Case 3:
     If you create a brand-new dataset and chooses the purpose of the dataset as “Corrective Returns” without any original dataset associated with it, the alert message is not displayed.
  • Use Case 4:
    The system will not restrict the creation of multiple corrective returns if the original return is in read-only status.