Preparations for Outgoing Invoices 

Deliveries to customers with a VAT registration number in other EU member states are exempt from tax. You must note on the outgoing invoices that they are tax-exempt. You must also specify the customer's VAT registration number and your own. Deliveries of this type must be declared separately in the advance return for tax on sales/purchases.

Note the following for outgoing invoices:

Fields in the Line Item

The customerís VAT registration number must be specified in the FI document. The VAT registration number field is not ready for input in the line item. This value can only be retrieved from the customer master record. This is done when you enter a reporting country. The reporting country is the country in which the customer was assigned his or her VAT registration number.

The Reporting country field is ready for input if the following conditions are met:

If, in addition, the country key contained in the customer master record is different from the country of the company code and if this is an EU country, the VAT registration number specified for the customerís country is defaulted as the tax number. If the reporting country is deleted from the line item, the VAT registration number is also deleted. The country of the company code is always adopted as the delivering country if a VAT registration number exists in the line item. The Delivering country field is not displayed in the line item.

All specifications must be entered for the customer item on an additional screen. If the additional screen is not called up when you enter a document, the system automatically adopts the default values.

For postings to a one-time account, the VAT registration number is not displayed on the additional screen but on the screen for the one-time data. It can be entered directly here. There is no field for the reporting country.

For recurring documents, the country in which the customer is located is adopted as the reporting country, and the relevant VAT registration number is also determined from the master record.

The system is so configured that the fields Reporting country and Tax number are only displayed if the posting is sales-related. This information is contained in the posting key. These fields are also ready for input if terms of payment can be entered in a non-sales-related posting. The system needs these postings to be able to enter tax data in the cash discount items. This is necessary for a residual item that is paid at a later date with cash discount deduction, for example. These non-sales-related postings are not included in the reports for the tax authorities.

What to Consider When Entering the G/L Account Line Item

The new tax rules are only relevant for postings for cash discount paid. By using a separate field status group for these accounts, you can ensure that the necessary tax data can only be entered for these accounts. When you enter documents for all other G/L accounts, these fields are hidden.

In the case of automatic postings, the system automatically copies the tax number and the delivering country from the open item account line item to the cash discount items.

When you enter cash discount paid manually, you cannot enter the tax number directly. It is determined on the basis of a customer number and the reporting country. Both specifications must be entered in the cash discount paid item to call the customerís VAT registration number.

Tax Codes and Tax Accounts

Deliveries to customers with a VAT registration number in other EU member states are exempt from tax. To be able to furnish proof of such a delivery, however, and to be able to report according to legal requirements, you must post a tax item. You need a separate tax code to do this. You must also specify an account for this code.

So that the type of delivery can be recognized, specify for every tax code whether it is a delivery of goods, subcontracting, or a service. Currently only deliveries of goods are displayed in the returns.