Spanish Intra-community VAT Setup and its operations, reviewing and printing setup

Dear Dynamics 365 Lovers,

In this blog I have articulated about the Spanish Intra-community VAT Setup and its operations, reviewing and printing setup, I hope it will be interesting for you. 

lets explore~

Business scenario~

When Spanish company book a European Union (EU) vendor invoice, two VAT transactions are created. One VAT transaction is created for payable sales tax, and the other VAT transaction is created for receivable sales tax.

For other country similar scenario is referred as ;Reverse charge or use tax sometime 

Step by Step Configuration~ 

To use this function we must enable the below two parameters 

1: Accounts Payable parameter-> ledger and sales tax-> Intra-community VAT= Yes

2: General ledger parameters-> Ledger-> Negative sales tax percentage = Yes

Now, we shall create two sales tax codes.

1: IN+21% value= +21% this is for positive code, with this code, transaction is created for receivable sales tax.

2: IN-21% value=  -21% this is for negative code, with this code, transaction is created for payable sales tax

(Note- to create negative value tax code, kindly allow negative sales tax percentage)

Now the two tax code is created 

• Create a Sales Tax Group and add the newly created two sales tax codes to this group
• Enable the Intra-Community VAT for negative Sales tax code, see below.

Create an Item Sales Tax Group and add the newly created two sales tax codes to this group

• Add Sales tax group to the required Vendor 
• Add Items sales tax group to the ITEM if required for Purchase Order Invoice.

The configurations are done

Operations & Reviewing posted intracommunity VAT amounts

Now lets create one vendor invoice and check the posted transactions and posted sales tax

See the the below Posted sales tax on the transaction and it shows the positive tax code IN+21% as Sales tax receivable and IN-21% as Sales tax Payable 

To review the intra-community VAT amounts that have been posted, run the Posted sales tax query (Tax > Inquiries and reports > Sales tax inquiries > Posted sales tax). On the Posted sales tax page, on the General tab, the Intra-community VAT check box is selected

BONUS

Spanish localization has default print PDF option for Intra- Community Invoice from Invoice Journal Page

Printing intracommunity VAT on a purchase invoice

To print intra-community VAT on a purchase invoice, enable the Print EU sales tax on Spanish invoices option on the Invoice tab on the Form setup page (Accounts payable > Setup > Forms > Form setup).

Printing invoices that have intracommunity VAT amounts

I have added the Microsoft Documentations for this business scenario https://docs.microsoft.com/en-us/dynamics365/finance/localizations/emea-esp-intra-community-vat#reviewing-posted-intracommunity-vat-amounts

I have added the Legislation requirement here https://www.garrigues.com/en_GB/new/spain-introduces-changes-vat-intra-community-trade