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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / VAT 100 Report configu...
Finance | Project Operations, Human Resources, ...
Answered

VAT 100 Report configuration for Reverse Charge between UK and EU countries

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Posted on by EUH Syed 35

Hi All,

We need to set up reverse charge for UK VAT reporting for trading with EU.

We cannot use the inbuilt RC function because the legal entity is Danish, but has a UK trading warehouse within it.

We are instead using the Use Tax functionality to achieve the RC function

I understand that there is a way to configure the VAT report in the 'Report setup' section of the Sales tax code to achieve correct reporting(for e.g. in the German DEMF Contoso entity below):

pastedimage1610024791057v1.png

Does anyone know if this is possible for our scenario (i.e. for the English report layout) and what the values are?

Many thanks

I have the same question (0)
  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: VAT 100 Report configuration for Reverse Charge between UK and EU countries

    Hi EUH Syd,

    If I read this correctly then your scenario is that a Danish company sends goods from their UK warehouse to another EU country - let's assume France.

    Is that right?

    Best regards,

    Ludwig

  • EUH Syed Profile Picture
    EUH Syed 35 on at
    RE: VAT 100 Report configuration for Reverse Charge between UK and EU countries

    Hi Ludwig,

    Yes, but only B2B both to other EU and also UK companies,

    Regards

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: VAT 100 Report configuration for Reverse Charge between UK and EU countries

    I see.

    Is this then a sales related transaction, meaning that your company sells the stuff to customers in other EU countries?

    In this case there should be no tax on your invoice and you need to record only the tax base amount, right?!

    Best regards,

    Ludwig

  • Verified answer
    EUH Syed Profile Picture
    EUH Syed 35 on at
    RE: VAT 100 Report configuration for Reverse Charge between UK and EU countries

    Hi Ludwig,

    Yes, this is the case, and also there will be the occasional purchase of goods and services from EU as well.

    However I found that it seems to work fine actually, without any need to enter anything in the report setup fields. I will do further testing with various scenarios but it's looking good so far,

    Many thanks for your help

    Best regards

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: VAT 100 Report configuration for Reverse Charge between UK and EU countries

    Hi EUH Syd,

    Great to hear.

    I have a related question, maybe you know the answer:

    Does the EU reverse charge mechanism actually still apply after Brexit? Do you have special transition rules in the UK?

    Best regards,

    Ludwig

  • Suggested answer
    EUH Syed Profile Picture
    EUH Syed 35 on at
    RE: VAT 100 Report configuration for Reverse Charge between UK and EU countries

    Hi Ludwig,

    My understanding is that the reverse charge mechanism for the UK will continue as before for the foreseeable future. Here is a link. There are, however, a number of other changes which have applied as outlined in this link:

    "There are limited changes on the Brexit VAT on services for B2B transactions after the UK leaves the EU VAT regime. The reverse charge will still apply. In the future, the UK may deviate from some of the use and enjoyment rules. There are changes on certain cross-border B2C services to EU consumers (and vice-a-versa)."

    www.avalara.com/.../uk-to-leave-eu-vat-regime-31-dec-20200.html

    Hope that helps

    Best regards

    ***UPDATE***

    It appears that the reverse-charge mechanism does not apply to procurement of goods into GB from the EU any longer due to Brexit, however it is not clear if this is also the case with services. I will update when I can find out more unless someone else knows.

    Paying VAT on imports from outside the UK to Great Britain and from outside the EU to Northern Ireland - GOV.UK (www.gov.uk)

  • Suggested answer
    markhenri Profile Picture
    markhenri 5 on at
    RE: VAT 100 Report configuration for Reverse Charge between UK and EU countries

    hey sir

    I think so that business 2 business they both can do in this situation there is not tax will be applicable .or want to know more taxationoutsourcing

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