Value added tax
Requirement
All member states of the EU must adopt the EU directives regarding VAT into their own national legislation.
M3 solution
These requirements are supported:
- VAT on goods and services
- VAT on purchase of goods and services
- VAT on supplier self-billing
- VAT with tax point on payments
- VAT with tax point on deliveries
- Required VAT information on invoices
- Simplified triangulation
- Fiscal representation
- Through address and entry point in EU
- VAT handling for prompt payment discounts
- VAT in both local and foreign currencies
- VAT reporting
- VAT reconciliation
- VAT payments and refunds
The calculation, accounting, reporting, and reconciliation of value added tax is supported by generic functionality in M3. Country-specific functionality is then configured from this standard functionality, and delivered with the country version:
- VAT reports and electronic reporting
- Unpaid supplier invoices
- VAT reports by voucher number
- VAT reports by invoice number for customer and supplier invoices
Configuration guidelines
| Program ID | Program name | Description or comment |
|---|---|---|
| MNS100/G | Company. Connect Division | Specify the tax method per division. |
| CRS030 CRS031 |
VAT Code. Open VAT Rate. Open |
Specify the VAT rate by date, country, and area or state. |
| CRS395 | Accounting Rule. Set | Configure all VAT setups. |
| CRS610/J | Customer. Open | Specify the VAT registration number of the customer. |
| CRS620/E | Supplier. Open | Specify the VAT registration number of the supplier. |
| CRS630 | Accounting Identity. Open | Set the VAT account types as required. |
| OIS002/F | Customer. Connect Addresses | Optionally, in the VAT reg no field, specify the VAT registration number. |