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Product Update 396/397: Default Value-Added Tax (VAT) Codes for European Union (EU) Countries when Making Logistics and Financial Entries

Introduction

As of 1 January 2010, there have been changes to the current value-added tax (VAT) accounting and reporting processes. For one of the VAT systems, the European Community (EU) Sales List, the listing of delivery of goods has been replaced by the listing of delivery of goods and services. For more information, see Product Update 395/396: New Value-Added Tax (VAT) Rules for European Union (EU) Countries.

Changes in the business logic of the default VAT codes are applicable to entry lines in logistics and financial entries for items where Goods or Services are selected at Classification ESL.

Menu path

CRM/Entries/Quotations
Order/Entries/Sales orders
Order/Entries/RMA orders
Order/Entries/Fulfillment
Order/Entries/Blanket orders/Enter
Order/Entries/Recurring sales orders/Maintain
Service/Entries/Service orders
Invoice/Entries/Invoices
Invoice/Entries/Direct invoices
Invoice/Entries/Recurring invoices/Enter
CRM/Contracts/Prolongation/By debtor
Projects/Entries/Project orders
Projects/Entries/Invoice proposal
Finance/Entries/Sales
XML/Logistic import/Sales orders
XML/Logistic import/Sales invoices
Finance/VAT/Statistics/VAT/VAT return
Finance/VAT/Statistics/VAT/EU Sales list
Finance/VAT/Statistics/VAT/VAT listing

What has been changed

The following changes are implemented for Austrian, Belgian, Czech, Slovak, Danish, German, French, Greek, Hungarian, Irish, Italian, Luxembourger, Dutch, Polish, Portuguese, Romanian, Spanish, Swedish, British, and International legislations and applicable when Use tax module in General ledger settings is disabled and if SE1100 – E-Invoice is included in the license. The country of the debtor in the entry must be different from the country of the administrator:

Default VAT codes

The change in the business logic for default VAT codes as explained below are implemented for the following entries:

Logistics:

· Quotation

· Sales order

· Planned return

· RMA order

· Release blanket order

· Recurring order

· Service order

· Invoice

· Direct invoice

· Recurring invoice

· Prolongation

· Extra fulfillment

· Project order

· Invoice proposal

Financial:

· Sales journal entry

SDK/XML:

· SDK-Order

· SDK-Invoice

· XML-Order
Note: This is applicable only when the VAT code tag is missing in the XML file.

· XML-Invoice
Note: This is applicable only when the VAT code tag is missing in the XML file.

With this change, once an item is entered in the entry line, the default VAT code is based on the option selected at Classification ESL in the item maintenance screen.

When the option at Classification ESL is empty or Goods, the current business logic for the default VAT code remains unchanged whereby the VAT code will be based on VAT in the debtor maintenance screen.

However, if VAT is empty (NULL), then the VAT code will be based on Sales VAT code in the item maintenance screen.

When the option at Classification ESL is Services, the VAT code will be based on VAT services in the debtor maintenance screen. However, if VAT services is empty (NULL), then the VAT code will be based on VAT. If both VAT services and VAT in the debtor maintenance screen are empty (NULL), then the VAT code will be based on Sales VAT code in the item maintenance screen.

The VAT code in the existing entry lines will not be automatically updated if you change the VAT code in the debtor or item maintenance screens. The VAT code in the existing entry lines remain unchanged when the debtor of the entry is changed. However, the VAT code will be updated in the existing entry line in accordance with the earlier explained business logic if the item that is changed has a different Classification ESL.

Additional changes to Belgian legislation