Defining VAT Countries

To define VAT countries, use the VAT Country Definition component (COUNTRY_VAT).

This section discusses how to define VAT countries.

Page Name

Definition Name

Usage

VAT Country Options Page

COUNTRY_VAT_PNL

Define countries in which you or your trading partners are located and which are subject to VAT.

Use the VAT Country Options page (COUNTRY_VAT_PNL) to define countries in which you or your trading partners are located and which are subject to VAT.

Navigation:

Set Up Financials/Supply Chain > Common Definitions > VAT and Intrastat > Value Added Tax > VAT Country Options

Field or Control

Description

VAT Default

Click to access the VAT Defaults Setup page. The system transfers you directly to the VAT Defaults Setup component with the applicable fields for the VAT country driver and entered VAT country. Here you can specify VAT defaults for the country.

Note: This is the same page you can access using the VAT Defaults Setup component described later in this topic.

VAT Return ID Type

Specify the type of VAT registration ID for the system to use when completing your VAT return.

If you use your VAT registration ID, select VAT.

If you use a local tax ID, select Local.

You define the IDs on the VAT entity.

EC Sales List ID Type

If your organization uses the EC sales list report, specify the type of VAT registration ID for the system to use on the report.

If you use your EU VAT Registration ID, select VAT.

If you use a local tax ID, select Local.

Treat Exported Service As

Use to define the handling of transactions for the sale of international services.

Specify the treatment as either Zero-Rate or Outside the scope of VAT.

Service For Foreign Buyer

For services supplied domestically to a foreign buyer, specify whether to treat this service as a Domestic transaction or as a deemed Export.

Record VAT on Import Goods As

For imported goods, specify whether to record the VAT as Inpt/Outpt (input/output) VAT to self-assess the VAT, or Input Only, which is assumed to be zero because the customs VAT is recorded on a third-party voucher.

Use VAT Suspension

Select if this country grants suspension from VAT to qualifying organizations.

Track VAT by Province, Track VAT by Department, or Track VAT by Bundesland

Select if this country tracks VAT at a subcountry level.

Note: The exact wording of this field depends on how you defined the state label for this country on the main Country page.

Apply Domestic Reverse Charge

Select to enable the domestic reverse charge for countries that require the use of the reverse charge provision for certain goods. The domestic reverse charge applies to sales within the UK where specified goods are purchased by a VAT-registered business for business purposes (sales to nonbusiness customers are unaffected by the change, and normal VAT rules apply).

VAT Authority Name and Short Name

Enter the VAT authority long name and short name. This is displayed on domestic reverse charge-applicable invoices and indicates the VAT authorities to which the customer must pay the self-assessed output VAT.