EU VAT Setup Question

joshplummer

I have a situation where I have 4 facilities in Europe and 2 in the US. The Facilities in Europe need to calculate VAT on sales. However, I'm not sure if our rules are standard rules or not.

For example, the countries in Europe only collect VAT on sales in the same country. So, if France sells to France, it collects VAT. If France sells to Germany, it does not collect VAT. The same is true for all countries.

I've been able to get the Tax Posting Setups set to where VAT is calculated but I can't seem to get it to NOT calculate if the sell-to country is different...

We have the US version of 3.60A. There is one DB that all 5 countries run out of with seperate companies (the 2 facilities in the US are actually 1 financial entity).

Any help would be appreciated. Someone pointing me to the correct documenation would be great as well if it exists. Also, if I need to write code to make this happen, that's fine. But, a little help pointing in the right direction there would help also.

kriki

In europe the "Sales Tax"-fields are not used. Only "VAT Business Posting Group" (defined on the customer or vendor) and "VAT Product Posting Group" (on the item or G/L Account for direct posting) are used.
In the table "VAT Posting Setup", the combination of both will define the VAT-percentage.
So if your customer is a foreign customer, you give him a group of Foreign. Combined with the "VAT Product Posting Group" it should give 0% VAT.

If you take the W1-version, you will find some examples.
It should not be needed to make changes in the code. At least this goes for the W1-version. I don't know what changes the Navision US did. You should check if they didn't do changes that disable the W1-VAT calculation.

PS : I would hire a local Navision VAT-specialist to do the country-specific VAT-setup. The rules between the different countries can change very much.

Kowa

Trade between EU Countries needs "Reverse Charge VAT" and an additonal "Reverse Chrg. VAT Acc." filled in. Do not generally set the Tax % to zero, (except for tax free Items) that is done only for international trade with countries outside the EU.
Typical setup for a german system : ( without the accounts)
0 := No VAT
7: Reduced VAT
16 : Full VAT

VAT Bus. Post. Grp. VAT Prod. Post. Grp. VAT Calc. Type VAT %
0 "Normal VAT" 0
7 "Normal VAT" 0
16 "Normal VAT" 0
EU 0 "Reverse Charge VAT" 0
EU 7 "Reverse Charge VAT" 7
EU 16 "Reverse Charge VAT" 16
IMP/EXP 0 "Normal VAT" 0
IMP/EXP 7 "Normal VAT" 0
IMP/EXP 16 "Normal VAT" 0
NATIONAL 0 "Normal VAT" 0
NATIONAL 7 "Normal VAT" 7
NATIONAL 16 "Normal VAT" 16

Also bear in mind that "Adjust for Payment Disc." has to be ticked in the G/L Setup. ( refunds VAT if payment discounts are given).

The two tax accounts balance to zero , but the tax charges have to calculated nonetheless because they are subject of various tax documents (preliminary turnover tax return or INTRASTAT declaration)

2nd Hand Goods are posted as tax free , but are subject to differential taxation ( difference between purchase price and sales price (profit margin) is taxed)