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NAVISION Dynamics TRIMIT - VAT Triangulation

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Posted on by nirishandy 15

Hi there,

Our business is based in the UK, yet we have a GB warehouse and NL warehouse, so have a VAT number assigned to each.

Our customer, based in the UK, has a Warehouse in DE.  They have asked for us to ship goods from our NL Warehouse to their DE Warehouse, as an intra EU transaction.  The VAT is 0% Reverse Charge due to the goods being shipped NL to DE.  However the billing address is GB.  

Question: how do I get Navision to bill the GB Customer for what is an Intra EU sale?  It's ok for the background shipping details, but when I come to invoice the goods, then our system is trying to charge GB VAT.

Cheers
Andy

  • Suggested answer
    Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: NAVISION Dynamics TRIMIT - VAT Triangulation

    Andy,

    This one requires a VAT expert but as I can certainly change VAT Bus. Posting Group to mark the invoice EU but the name will still show a GB Country. Could you the Tax Authority for direction? There answer might tell you how to move forward.

    Thanks,

    Steve

  • nirishandy Profile Picture
    nirishandy 15 on at
    RE: NAVISION Dynamics TRIMIT - VAT Triangulation

    Thanks for your extensive answer, and I appreciate the fact that you've answered point A below, which I understand.  However, it's point B that's confusing us as part of the triangulation, but not in the same location as the goods.

    a) Goods are being shipped NL to DE

    b) Sales Invoice is being raised from GB (my business) to GB (customers business).  So I need to make sure that it avoids being classed as a GB sale.  

    So how do we bill the EU shipment, even though the invoice is being dealt with in the UK by 2 GB companies?

    Thanks

    Andy

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: NAVISION Dynamics TRIMIT - VAT Triangulation

    Hello,

    Here are the steps to setup Reverse Charge on VAT:

    To reverse charges on VAT

    1. In the Search box, enter VAT Business Posting Groups, and then choose the related link. Create a new VAT business posting group. Set up the needed VAT product posting groups.

    2. Open the pastedimage1614950131764v2.gifGeneral Ledger Setup window. On the Reverse Charge FastTab, fill in the fields as described in the following table.

      Field Description

      Threshold applies

      Specifies if reverse charge invoices will be processed.

      Threshold Amount

      Specifies the “de minimis rule” amount that is determined by the tax authorities. The reverse charge does not apply to supplies with a VAT-exclusive value below this amount.

    3. Open the pastedimage1614950131765v3.gifSales & Receivables Setup window. On the Reverse Charge FastTab, fill in the fields as described in the following table.

      Field Description

      Reverse Charge VAT Posting Gr.

      Specifies the VAT business posting group code for reverse charge VAT.

      Domestic Customers

      Specifies the VAT business posting group code for domestic customers.

      Invoice Wording

      Specifies the wording that is printed on the invoice to indicate that the invoice is a reverse charge transaction.

    4. Open the pastedimage1614950131765v4.gifPurchases & Payables Setup window.

    5. On the Reverse Charge FastTab, fill in the fields as described in the following table.

      Field Description

      Reverse Charge VAT Posting Gr.

      Specifies the VAT business posting group code for reverse charge VAT.

      Domestic Vendors

      Specifies the VAT business posting group code for domestic vendors.

    6. To set up items subject to reverse charge, select the item, and open the Item Card window. On the Invoicing FastTab, fill in the field as described in the following table.

      Field Description

      Reverse Charge Applies

      Specifies if this item is subject to reverse charge.

    Now enter a Sales Order for the Customer with this Item that employs Reverse Charge.

    Hope this helps.

    Thanks,

    Steve

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