| # Tax registration in a foreign country Differences between Infor ERP LN 6.1 FP2 and Infor ERP LN 6.1 FP3. For example in the European Union, various rules exist by which transactions are liable for taxation in the destination country, which can differ from the country in which the invoice is raised and/or paid. In the following situations, you must have a registered tax number in countries other than the company's home country: If you perform transactions that are taxable in the destination country. If you have branch offices in some countries that belong to legal entities in other countries. Infor ERP LN 6.1 FP3 In Infor ERP LN 6.1 FP3, you can model tax exceptions in such a way that the tax country of specific transactions differs from the financial company's home country. You must register your organization for tax in the new tax country, and you must link the tax number in the foreign country to a financial company. For transactions taxable in foreign countries, you must create a separate finacial company for tax registration in the foreign country. In Infor ERP LN 6.1 FP3, to implement tax registration in foreign countries, the following changes are made: In the Tax Parameters (tctax0100m000), the following check boxes are added: Use Tax Numbers of other Financial Companies If this check box is selected, ERP LN can change the tax country of a transaction and replace your tax number on, for example, order acknowledgements and sales invoices, with the tax number of the financial company in the new tax country. Allow Simplified Triangulation between Own Entities If this check box is selected, ERP LN does not apply the rules for tax registration in foreign countries to goods transfer between enterprise units of your company. If you select the Use Tax Numbers of other Financial Companies check box, you can select this check box. If you apply the simplified triangular trade procedure, you do not require a tax number in the destination country for goods transfer between enterprise units in different EU countries that represent sites of your own organization. . In the new Financial Departments (tctax4110m000) session, you can specify, for a financial company, the related operational and financial companies and the accounting office in every foreign tax country. In the Goods Transfer (tcemm2150m000) session, you can define goods transfer relationships between the following types of entities: Warehouse and accounting office Warehouse and service department Accounting office and sales office Purchase office and accounting office Accounting office and accounting office All orders that can result in taxable transactions are assigned a tax classification. ERP LN retrieves the default tax classification from the invoice-to and invoice-from business partner. You can use the tax classification to model tax exceptions, for ecxample, you can indicate that the tax must be paid in a different country. In the Reprint Invoices (cisli2405m000) session, you can reprint the invoice in the language of the business partner, the tax country, or both. Related topics Tax registration in a foreign country |