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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / D365 EU ABC VAT Transa...
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D365 EU ABC VAT Transactions

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Posted on by SU-22040800-0 2,416
I'm working on setting up the D365 FO Tax Calculation determination rules for an EU company, and there is a complex ABC transaction that I would like to know if anyone has handled in a smart way.
 
Scenario:
  1. A (Germany) sells to B (Netherlands) who in turn sells the stock to C (Belgium).
  2. C COLLECTS the stock from A (i.e. Delivery Term = FCA).
  3. All 3 entities are independent entities.
  4. Only company B is implemented on D365.
 
How i understand it, in the above, A is instructed by the ABC rule, to post (German) Sales Tax on the Sales Invoice to B, and not Intra-comm 0%.. This means that within the setup of D365 (for company B), there would need to exist all VAT codes for Germany to process the Payable Invoice (and potentially all other EU countries' sales ta codes that B could trade with in this manner). 
 
Has anyone encountered this scenario?
 
 
 
Categories:
Dynamics 365 Finance
  • SU-22040800-0 Profile Picture
    SU-22040800-0 2,416 on at
    D365 EU ABC VAT Transactions
    Thank you for the response Gaurangkumar Jani
     
    An apologies for the delayed response from my side... I have just been a bit busy.
     
    I read up on the OrangeTax article and it doesn't exactly answer my question.. (or maybe i'm reading it wrong). The main question I am asking, surrounds the Delivery Term FCA. From what I have been instructed, is that if A sells to B (who in turn sells to C) with term FCA, where C collects from A; Then A should charge local/domestic VAT on the invoice.
     
    This is something I'm not getting any clarity on, from any VAT documentation online.
     
     
  • Suggested answer
    Gaurangkumar Jani Profile Picture
    Gaurangkumar Jani 4,511 User Group Leader on at
    D365 EU ABC VAT Transactions
    Hi there,
     
    Please see below blog on ABC, and it's clear that B only need to concern on invoice come from A which should be charged at 0% Inter-community so no other Tax code needs to be created. 
     
    Please let me know if this is helpful.
     
    Thanks,
    CA Gaurangkumar Jani

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