European tax reporting

If your business operates in the European Community (EC), then you must file periodic of taxable sales and purchases of goods and services. Because of the reporting variations between countries, VAT return reporting requires special processing. You may also be required to file Intrastat reports.

Tax authorities require two reports:

• The Value Added Tax Return Report contains summary information for all of the taxable purchases and sales that are made by the company over a period. It shows the company's VAT tax liability. VAT tax liability is the difference between tax that is collected from customers and tax that is paid to vendors. The Value Added Tax Return Report contains statistical information about some types of transactions, such as transportation. Value Added Tax Return Reports vary from country to country.
• The European Community Sales List Reports contain all of the intra-EEC sales transactions that are reported on your company Value Added Tax Return Reports for the quarter.