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 on payments
  • VAT on deliveries
  • Required VAT information on invoices
  • Triangulation
  • Fiscal representation
  • Through address and entry point in EU
  • VAT handling for cash and 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
  • VAT control reports
  • Unpaid supplier invoices
  • VAT reports by voucher number
  • VAT reports by invoice number for customer and supplier invoices

In this country, most of the functionality that supports VAT calculation, accounting, reporting, and reconciliation is used.

The VAT date can be taken from the invoice date, the accounting date, the delivery date, or the due date.

In Poland, the standard VAT rate is 23%, and the reduced VAT rates are 8% and 5%.

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.