European Union (EU) Supplemental Information
This information may include:
- Delivery Terms
- Nature of Transaction Code (NOTC)
- Secondary Nature of Transaction Code, if applicable
- Commodity Code
- Origin
- Process Indicator
- Unit Weight in Kilograms
- Supplementary Units (the system provides a conversion factor used to calculate supplementary units)
- SSD Value
- Consignment Number
To handle this requirement, an EU VAT data tab is included on line item forms (for example, Customer Order Lines, Purchase Order Lines, and so on). On this tab, you can display and/or update the above information for a line item. Some of this information (for example, NOTC, Delivery Terms, and Process Indicator) may also be tracked at the order header level.
Reporting Documents
The EU VAT information is included on these reporting documents:
- EU VAT Report or VAT Report.
Use the EU VAT Report form to capture information about the value of intra-community sales and purchases. This information is required for the European Union (EU) Value Added Tax (VAT) Report. This report extracts information for boxes 1-7 from invoice and voucher sales tax information, and boxes 8 an 9 from Invoice Register and A/P Voucher Register line items, grouped by tax code.
Use the VAT Report form, which is a more detailed version of the EU VAT Report form, to extract information from invoice and voucher sales tax information, from the Invoice Register and A/P Voucher Register line items, and from the manual journal entries tax table. The information can be grouped in various ways to provide subtotal amounts that can be used to fill in the VAT reports that are required by tax authorities in some EU countries. You can also set up Tax Line Numbers and use this report to tie the tax line numbers to the relevant boxes on your VAT submission form, to provide transaction totals.
- EU Sales List, also known as the EC Sales List Report
- EU Supplementary Statistical Declaration Report, also known as the Intrastat Report
These reports allow VAT authorities in EU member countries to control the administration of VAT under the single market.
There are potentially several statistical obligations that must be completed by VAT-registered businesses involved in intra-EU trade:
- Additional boxes 8 and 9 on the VAT return (VAT Return), used in the United Kingdom
- EU Sales List (ESL)
- Supplementary Statistical Declaration (SSD)
- VAT fiscal authority report, used in Germany
These reports detail intra-EU trade only.
System Assumptions and Disclaimers
- On invoicing, VAT is charged if the customer is domestic, or is in another member state and is not registered and arranges transport of goods. In the system, both cases are indicated by a blank tax code on the Customer Orders form. If these conditions are not met, you must manually enter an exempt tax code for customer orders.
- If processed goods are sent to another member state for processing, the transaction must appear on the EU Sales List Report. The necessary indicators and codes should be in place.
- If freight and miscellaneous charges are used on customer orders or purchase orders within SyteLine, these values are not reported on the EU SSD Report. For the EU Sales List, however, options are available to include or not include these charges.
- SyteLine treats installed and assembled goods as domestic supplies in the member state where they are installed or assembled.
- For intrastat, the owner must account for the moving of the goods being processed, both going out and coming in. On the return of the goods, they are declared at cost plus the processing charge.
- The tax point for VAT is the invoice date.
- Some optional SSD fields have been omitted.
- A/R payment receipts or A/P payments do not generate any VAT or SSD records. Taxes are due on invoice, not on payment/receipt.
- The system assumes that the tax point for VAT is the invoice date.