Tax exempt numbers

(0) Share

Report

Posted on by CapsLock

1,419

Hi,

Anyone knows when this should be filled? What implications does it have to have informed here the tax exempt numbers? What is this used for?

The form I'm referring to is found under the menu path: Tax > Setup > Sales tax > Tax exempt numbers

I have the same question (0)

All responses (8)

Answers (3)

CapsLock 1,419 on at

Like (0)

Report

RE: Tax exempt numbers

Hi,

Thanks for your answers above. does anyone know what does the option "Check tax exempt number" actually checks if ticked in this form? What's best practice to tick it or not? Thanks again!

Was this reply helpful? Yes No
Verified answer

Ludwig Reinhard Microsoft Employee on at

Like (1)

Report

RE: Tax exempt numbers

Hi CapsLock,

This is needed for the EUsalestax list report that you have to submit if you operate in EU countries.

For details, please see:

docs.microsoft.com/.../eur-00011-eu-sales-list-reporting

When doing your tax statement and your reconciliation, make sure that the EU sales list ties to your sales tax report!

Best regards,

Ludwig

Was this reply helpful? Yes No
Suggested answer

Ramit Paul 22,797 Most Valuable Professional on at

Like (1)

Report

RE: Tax exempt numbers

I saw this is used as FR in France, but talk to your client if they have any legal requirement.

Was this reply helpful? Yes No
CapsLock 1,419 on at

Like (0)

Report

RE: Tax exempt numbers

Thank you Ramit. Last question, what should I inform on the sales tax box?

Was this reply helpful? Yes No
Verified answer

Ramit Paul 22,797 Most Valuable Professional on at

Like (0)

Report

RE: Tax exempt numbers

Hello,

The error is coming because you need to add tax code for country in TAX- setup- sales tax- country/region parameters.

Was this reply helpful? Yes No
CapsLock 1,419 on at

Like (0)

Report

RE: Tax exempt numbers

Thank you guys. I understand that I need to have there all the VAT or tax exempt numbers for all customers or vendors. Not only the ones that are exempt but I all of them though.

Still I have 2 questions regarding the same.

1. When creating a new tax exempt number I receive this warning message. The number is created and can be added to a customer but I would like to understand why do I get the message.

The country is added on:

2. There is this other form that seems related. As I understand, this automatically generated the European format for a tax exempt number. Is it correct? Or, is this setup for something else? This is, if a French company, for example, has a local VAT number of 12345678911, by creating it like that as tax exempt number and having this setup:

It should result in the following "European tax exempt number": FR12345678911. Is this correct? If so, where would I see that the tax number has not the FR in front or not? Not in a free text invoice:

Was this reply helpful? Yes No
Verified answer

Ludwig Reinhard Microsoft Employee on at

Like (1)

Report

RE: Tax exempt numbers

Hi CapsLock,

From a legal perspective in the EU you need to track those numbers if you want to process specific transactions without VAT.

As an example, if your company operates in Denmark and wants to import something tax free from Germany then you have to be able to prove that this is a tax free intra EU transaction. This prove can be made by specifying this number on your invoice documents. The same applies for sales for example from Denmark to France or any other EU country.

If the tax exempt number is missing then you risk that you have to pay the tax later on.

That is, out of the sales revenue that you collected, you would have to pay the tax.

Given the high VAT rates in Europe, this can endanger your business.

So, be very careful with that and make sure that your invoices are in line with VAT regulations in your country.

Best regards,

Ludwig

Was this reply helpful? Yes No
Ramit Paul 22,797 Most Valuable Professional on at

Like (1)

Report

RE: Tax exempt numbers

Hi,

Good question.

This form is same as Vat number for customer and vendor

When the vendor or customer is created there is a field called tax exempt number, that comes from this master form

In one world This is VAT master form for vendor customer eta.

Was this reply helpful? Yes No