European Union (EU) Supplemental Information

European Union (EU) countries require certain information to be tracked at the item level for statistical purposes. This information may include:

• Delivery Terms
• Nature of Transaction Code (NOTC)
• Secondary Nature of Transaction Code, if applicable
• Commodity Code
• Origin
• Process Indicator
• Unit Weight in Kilograms
• Supplementary Units (the system provides a conversion factor used to calculate supplementary units)
• SSD Value
• Consignment Number

To handle this requirement, an EU VAT data tab is included on line item forms (for example, Customer Order Lines, Purchase Order Lines, and so on). On this tab, you can display and/or update the above information for a line item. Some of this information (for example, NOTC, Delivery Terms, and Process Indicator) may also be tracked at the order header level.

NOTE: Consult your local tax office for information about the specific codes, indicators and values to enter in these forms.

Reporting Documents

The EU VAT information is included on these reporting documents:

• EU VAT
• EU Sales List, also known as the EC Sales List Report
• EU Supplementary Statistical Declaration Report, also known as the Intrastat Report

These reports allow VAT authorities in EU member countries to control the administration of VAT under the single market.

There are potentially three statistical obligations that must be completed by VAT registered businesses involved in intra-EU trade:

• Additional boxes 8 and 9 on the VAT return (VAT Return), used in the United Kingdom
• The EU Sales List (ESL)
• The Supplementary Statistical Declaration (SSD)

These reports detail intra-EU trade only.

System Assumptions and Disclaimers

• On invoicing, VAT is charged if the customer is domestic, or is in another member state and is not registered and arranges transport of goods. In the system, both cases are indicated by a blank tax code on the Customer Orders form. If these conditions are not met, you must manually enter an exempt tax code for customer orders.
• If processed goods are sent to another member state for processing, the transaction must appear on the EU Sales List Report. The necessary indicators and codes should be in place.

• If freight and miscellaneous charges are used on customer orders or purchase orders within SyteLine, these values are not reported on the EU SSD Report.  For the EU Sales List, however, options are available to include or not include these charges.

• SyteLine treats installed and assembled goods as domestic supplies in the member state where they are installed or assembled.

• For intrastat, the owner must account for the moving of the goods being processed, both going out and coming in.  On the return of the goods, they are declared at cost plus the processing charge.

• The tax point for VAT is the invoice date.
• Some optional SSD fields have been omitted.
• A/R payment receipts or A/P payments do not generate any VAT or SSD records. Taxes are due on invoice, not on payment/receipt.
• The system assumes that the tax point for VAT is the invoice date.

Related Topics

Customer Order Lines

EU VAT Report

European Union (EU) Field Defaults

Purchase Orders

Setting Up Information for the EU Sales List Report

Setting Up Information for the EU SSD Report

Setting Up Tax Systems

Setting Up and Calculating Value-Added Tax Information