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<ManualTopic ID="/baanerp/tc/onlinemanual/000317" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">EU VAT codes</Title>
		<Keyword><Level1>EU VAT codes</Level1>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>Different <Link href="/baanerp/tc/glossary/glossary#000338" role="glossary">VAT</Link> rates apply to the goods transfer between the countries of the European Union (EU).</Paragraph>
		<List><ListIntro>SSA ERP applies the VAT rules for intra-EU transactions if the following is true:</ListIntro>
			<ListItem>The business partners involved are legal persons, in other words, the business partners have a <Link href="/baanerp/tc/glossary/glossary#000336" role="glossary">tax number</Link>.</ListItem>
			<ListItem>The transactions are posted to financial companies that reside in EU countries.</ListItem>
		</List>
		<List><ListIntro>The VAT rates for intra-EU transactions apply to the following transaction types:</ListIntro>
			<ListItem>Sales transactions and purchase transactions between your company and external business partners.</ListItem>
			<ListItem>Sales transactions and purchase transactions between <Link href="/baanerp/tc/glossary/glossary#AffiliCompan.tc" role="glossary">affiliated-company</Link> business partners (logistic companies of one multisite structure).</ListItem>
		</List>
		<GeneralSection><SectionTitle>EU VAT rates</SectionTitle>
			<List><ListIntro>Five different <Link href="/baanerp/tc/glossary/glossary#000338" role="glossary">VAT</Link> rates are imposed in the EU countries:</ListIntro>
				<ListItem><Link href="/baanerp/tc/glossary/glossary#000339" role="glossary">Domestic VAT</Link>.</ListItem>
				<ListItem><Link href="/baanerp/tc/glossary/glossary#000340" role="glossary">Intercommunity transactions (ICT) sales VAT</Link>.</ListItem>
				<ListItem><Link href="/baanerp/tc/glossary/glossary#000341" role="glossary">Intercommunity transactions (ICT) purchase VAT</Link>.</ListItem>
				<ListItem><Link href="/baanerp/tc/glossary/glossary#000342" role="glossary">Import VAT</Link>.</ListItem>
				<ListItem><Link href="/baanerp/tc/glossary/glossary#000343" role="glossary">Export VAT</Link>.</ListItem>
			</List>
			<List><ListIntro>In the <GUIRef href="/baanerp/tc/mcs/tcmcs0138m000" role="session">Tax Handling (tcmcs0138m000)</GUIRef> session, you can enter the EU VAT tax codes and the corresponding VAT rates for each combination of:</ListIntro>
				<ListItem>Financial company.</ListItem>
				<ListItem>Country.</ListItem>
				<ListItem>Item (optional).</ListItem>
			</List>
			<Paragraph>If a VAT code applies to a specific item, you must specify the item. SSA ERP applies the VAT codes with an empty <GUIRef href="" role="manual">Item</GUIRef> field to all the items for which you do not enter specific VAT codes.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Tax numbers</SectionTitle>
			<Paragraph>Legal persons and businesses in the EU are identified by a <Link href="/baanerp/tc/glossary/glossary#000336" role="glossary">tax number</Link>. If you define a business partner in an EU country, you must enter the business partner's tax number.</Paragraph>
			<Paragraph>You can enter a default tax number for a business partner in the <GUIRef href="/baanerp/tc/com/tccom4100s000" role="session">Business Partners (tccom4100s000)</GUIRef> session. SSA ERP uses the default tax number for all the business partner addresses for which you do not enter a specific tax number.</Paragraph>
			<Paragraph>You can use the <GUIRef href="/baanerp/tc/com/tccom4530m000" role="session">Addresses (tccom4530m000)</GUIRef> session to enter the specific business partner's tax number in each country as part of the business partner role address.</Paragraph>
			<Paragraph>Business partners that do not have a tax number are considered to be private persons instead of commercial businesses. <Link href="/baanerp/tc/glossary/glossary#000339" role="glossary">Domestic VAT</Link> must be applied to all transactions with private persons.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Supply of goods with installation or assembly</SectionTitle>
			<Paragraph>Different rules apply to goods that must be assembled or installed on arrival. For example, these are components needed to repair, improve, or expand previously built or installed goods. This type of transactions typically occurs in a project or service environment. Therefore, SSA ERP uses the ship-to address to determine the country and the VAT number for transactions that you enter in <GUIRef href="/baanerp/tp" role="package">Project</GUIRef> and <GUIRef href="/baanerp/ts" role="package">Service</GUIRef>, according to the EU tax regulations.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Freight tax</SectionTitle>
			<Paragraph>Special VAT rates apply to freight orders for transportation across country borders. You must set up separate tax codes for the VAT on freight orders.</Paragraph>
			<List><ListIntro>To freight orders related to transportation in countries of the European Union, the following tax rules apply:</ListIntro>
				<ListItem>To freight orders for goods transport within a country, domestic VAT applies. For domestic VAT, SSA ERP uses the default tax code for freight orders that you specified in the <GUIRef href="/baanerp/fm/fri/fmfri0100m000" role="session">Freight Invoicing Parameters (fmfri0100m000)</GUIRef> session.</ListItem>
				<ListItem>For freight orders related to transportation across country borders, SSA ERP uses the EU tax codes that you defined in the <GUIRef href="/baanerp/tc/mcs/tcmcs0138m000" role="session">Tax Handling (tcmcs0138m000)</GUIRef> session.</ListItem>
				<ListItem><List><ListIntro>If the financial company that is linked to the enterprise unit of the shipping office resides in an EU country, SSA ERP determines the tax code and the tax country of the invoice as described below.</ListIntro>
						<ListItem>Sales freight tax applies to freight cost invoices for internal and external business partners.</ListItem>
						<ListItem>Purchase freight tax applies to self-billed invoices for internal freight costs.</ListItem>
						<ListItem>If the freight order line is linked to a sales order line or a purchase order line, SSA ERP uses the ship-from and ship-to address of the order line to determine the tax country and the VAT code in the same way as for sales orders and purchase orders.</ListItem>
						<ListItem>If no ship-from address and ship-to address can be found, SSA ERP determines the tax country and the VAT code based on the invoice-from and invoice-to data in the same way as for sales orders and purchase orders for which no ship-from and ship-to address is available.</ListItem>
						<ListItem>The invoice-from country is the country of the address of the financial company that is linked to the shipping office. The invoice-to country is the country of the invoice-to address.</ListItem>
						<ListItem>If one of the special EU tax codes applies, the specific EU Freight tax codes are used that you selected in the <GUIRef href="/baanerp/tc/mcs/tcmcs0138m000" role="session">Tax Handling (tcmcs0138m000)</GUIRef> session.</ListItem>
						<ListItem>If domestic tax applies, the default freight tax code is used that you specified in the <GUIRef href="/baanerp/fm/fri/fmfri0100m000" role="session">Freight Invoicing Parameters (fmfri0100m000)</GUIRef>.</ListItem>
						<ListItem>In all cases in which no special tax code applies, the default freight tax code is used that you specified in the <GUIRef href="/baanerp/fm/fri/fmfri0100m000" role="session">Freight Invoicing Parameters (fmfri0100m000)</GUIRef>.</ListItem>
					</List>
				</ListItem>
			</List>
		</GeneralSection>
		<GeneralSection><SectionTitle>To determine the tax country and the VAT code</SectionTitle>
			<Paragraph>To comply with the <Link href="/baanerp/tc/glossary/glossary#000338" role="glossary">VAT</Link> rules within the EU it is important to determine the <Link href="/baanerp/tc/glossary/glossary#000337" role="glossary">tax country</Link> of each transaction. SSA ERP uses the addresses to determine the tax countries. The business partner's addresses appear by default on the sales orders and purchase orders. Different rules apply to sales transactions, purchase transactions, and freight orders.</Paragraph>
			<Paragraph>The logic that SSA ERP uses to determine the tax country and the VAT code for sales transactions, purchase transactions, and freight orders is described below.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>To determine the tax country and the VAT code for sales transactions</SectionTitle>
			<List><ListIntro>If the financial company that is linked to the enterprise unit of the sales office resides in an EU country, the following rules apply:</ListIntro>
				<ListItem><List><ListIntro>If the invoice-to business partner does not have a tax number:</ListIntro>
						<ListItem>Tax country = invoice-from business partner country.</ListItem>
						<ListItem>VAT code = domestic VAT (the item's tax code).</ListItem>
					</List>
				</ListItem>
				<ListItem><List><ListIntro>If the invoice-from business partner country = the invoice-to business partner country:</ListIntro>
						<ListItem>Tax country = invoice-from business partner country.</ListItem>
						<ListItem>VAT code = domestic VAT (the item's tax code).</ListItem>
					</List>
				</ListItem>
				<ListItem><List><ListIntro>If the ship-from business partner country = the ship-to business partner country:</ListIntro>
						<ListItem>Tax country = ship-from business partner country.</ListItem>
						<ListItem>VAT code = domestic VAT (the item's tax code).</ListItem>
					</List>
				</ListItem>
				<ListItem>If the ship-from business partner country is an EU country, the following rules apply: <List><ListItem><List><ListIntro>If the invoice-to business partner country is an EU country:</ListIntro>
								<ListItem>Tax country = ship-from business partner country.</ListItem>
								<ListItem>VAT code = ICT sales VAT code.</ListItem>
							</List>
						</ListItem>
						<ListItem><List><ListIntro>If the invoice-to business partner country is not an EU country:</ListIntro>
								<ListItem>Tax country = invoice-from business partner country.</ListItem>
								<ListItem>VAT code = export VAT code.</ListItem>
							</List>
						</ListItem>
					</List>
				</ListItem>
			</List>
			<List><ListItem>If the ship-from business partner country is not an EU country, the following rules apply: <List><ListItem><List><ListIntro>If the ship-to business partner country = the invoice-from business partner country:</ListIntro>
								<ListItem>Tax country = invoice-from business partner country.</ListItem>
								<ListItem>VAT code = domestic VAT (the item's tax code).</ListItem>
							</List>
						</ListItem>
						<ListItem><List><ListIntro>If the ship-to business partner country is different from the invoice-from business partner country:</ListIntro>
								<ListItem>Tax country = invoice-from business partner country.</ListItem>
								<ListItem>VAT code = export VAT code.</ListItem>
							</List>
						</ListItem>
					</List>
				</ListItem>
			</List>
		</GeneralSection>
		<GeneralSection><SectionTitle>To determine the tax country and the VAT code for purchase transactions</SectionTitle>
			<List><ListIntro>If the country of the financial company that is linked to the purchase office's enterprise unit is an EU country, the following rules apply:</ListIntro>
				<ListItem><List><ListIntro>If the invoice-to business partner does not have a tax number:</ListIntro>
						<ListItem>Tax country = invoice-from business partner country.</ListItem>
						<ListItem>VAT code = domestic VAT (the item's tax code).</ListItem>
					</List>
					<List><ListIntro>If the invoice-from business partner country = invoice-to business partner country:</ListIntro>
						<ListItem>Tax country = invoice-to business partner country.</ListItem>
						<ListItem>VAT code = domestic VAT (the item's tax code).</ListItem>
					</List>
				</ListItem>
				<ListItem><List><ListIntro>If the ship-from business partner country = ship-to business partner country:</ListIntro>
						<ListItem>Tax country = ship-to business partner country.</ListItem>
						<ListItem>VAT code = domestic VAT (the item's tax code).</ListItem>
					</List>
				</ListItem>
				<ListItem><List><ListIntro>If the ship-to business partner country is not an EU country, the following rules apply:</ListIntro>
						<ListItem><List><ListIntro>If the ship-from business partner country = the invoice-to business partner country:</ListIntro>
								<ListItem>Tax country = invoice-to business partner country.</ListItem>
								<ListItem>VAT code = domestic VAT (the item's tax code).</ListItem>
							</List>
						</ListItem>
						<ListItem><List><ListIntro>If the ship-from business partner country is different from the invoice-to business partner country:</ListIntro>
								<ListItem>Tax country = invoice-to business partner country.</ListItem>
								<ListItem>VAT code = import VAT code.</ListItem>
							</List>
							<List><ListItem></ListItem>
							</List>
						</ListItem>
					</List>
				</ListItem>
				<ListItem><List><ListIntro>If the ship-from business partner country is an EU country, the following rules apply:</ListIntro>
						<ListItem><List><ListIntro>If the invoice-from business partner country is an EU country:</ListIntro>
								<ListItem>Tax country = ship-to business partner country.</ListItem>
								<ListItem>VAT code = ICT sales VAT code.</ListItem>
							</List>
						</ListItem>
					</List>
					<List><ListItem><List><ListIntro>If the invoice-to business partner country is not an EU country:</ListIntro>
								<ListItem>Tax country = invoice-to business partner country.</ListItem>
								<ListItem>VAT code = import VAT code.</ListItem>
							</List>
						</ListItem>
					</List>
				</ListItem>
			</List>
		</GeneralSection>
	</GeneralSection>
	<GeneralSection><SectionTitle>To determine the tax country and the VAT code for freight orders</SectionTitle>
		<Paragraph>In this description, the invoice-to country is the country of the address of the financial company that is linked to shipping office's enterprise unit.If the invoice-to-country is not an EU country, then the tax country is the country of the invoice-from address, that is the country of the address of the carrier’s invoice-from business partner role.</Paragraph>
		<List><ListIntro>If the country of the financial company that is linked to the purchase office's enterprise unit is an EU country, the following rules apply:</ListIntro>
			<ListItem>If the invoice-to-country is not an EU country, then the tax country is the country of the invoice-from address, that is the country of the address of the carrier’s invoice-from business partner role.</ListItem>
			<ListItem><List><ListIntro>If the invoice-to-country is an EU country:</ListIntro>
					<ListItem>If the address of the financial company of the shipping office does not have a tax number: <List><ListItem>Tax country = the ship-from country.</ListItem>
							<ListItem>VAT code = domestic VAT from the freight invoicing parameters.</ListItem>
						</List>
					</ListItem>
					<ListItem>If the address of the financial company of the shipping office has a tax number, the following rules apply: <List><ListItem>If the invoice-from country or the ship-from country is not an EU country then: <List><ListItem>Tax country = invoice-to country.</ListItem>
									<ListItem>VAT code = Import Freight</ListItem>
								</List>
							</ListItem>
							<ListItem>If the invoice-from country or the ship-from country is an EU country: <List><ListItem>If the invoice-to country = ship-from country, then <List><ListItem>If the invoice-from country = the invoice-to country, then: <List><ListItem>Tax country = invoice-from country.</ListItem>
													<ListItem>VAT code = domestic VAT from the freight invoicing parameters.</ListItem>
												</List>
											</ListItem>
											<ListItem>If the invoice-from country differs from the invoice-to country: <List><ListItem>Tax country = ship-from country (= invoice-to country).</ListItem>
													<ListItem>VAT code = ICT Purchase Freight.</ListItem>
												</List>
											</ListItem>
										</List>
									</ListItem>
								</List>
								<List><ListItem>If the invoice-to country differs from the ship-from country, then: <List><ListItem>If the invoice-from country = the invoice-to country: <List><ListItem>Tax country = invoice-to country.</ListItem>
													<ListItem>VAT code = domestic VAT from the freight invoicing parameters.</ListItem>
												</List>
											</ListItem>
											<ListItem>If the invoice-from country differs from the invoice-to country: <List><ListItem>Tax country = invoice-to country.</ListItem>
													<ListItem>VAT code = ICT Purchase Freight.</ListItem>
												</List>
											</ListItem>
										</List>
									</ListItem>
								</List>
							</ListItem>
						</List>
					</ListItem>
				</List>
			</ListItem>
		</List>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000316" role="manual">To define tax codes for EU VAT rates</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
