VAT Statement in different currency

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Posted on by David E

Hi,

If a company is VAT-registered in more than one country, you need to set up a new VAT Statement in NAV for each country. But the tax authorities requires you to report the VAT in the local currency. How can you set up a VAT-statement that shows amount in another currency than the selected LCY?

For example, you LCY is set to EUR but you will have to create a VAT statement in GBP and CHF for VAT transactions under UK or Swiss VAT-registration.

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Marcellus 2,735 on at

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Hi David,

There is the option called "Show Amount in Add.Reporting Currency" on the VAT statement report request page:

You can use this parameter to print your VAT statement in a different currency.

To setup the Additional Reporting Currency you have to go to the General Ledger Setup and select a Currency Code in the Additional Reporting Currency field in the Reporting Fast Tab:

You can find more information about the additional reporting currency on msdn: msdn.microsoft.com/.../hh168995(v=nav.80).aspx

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Alexander Ermakov 28,096 on at

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Good answer from Marcell. However I should admit standard NAV is not so flexible in your case. This is not the only difficulty you will face. Additional currency will allow you make one more country, but if you would have three countries with different currencies, it would not help. You would also meet differences in VAT legislation for different countries, that consequently might require different setups of posting groups and the way how VAT is processed. In the end, the reports of VAT statement itself might be different, and depend on certain localization...

I could suggest also looking at consolidation functionality, where you would have one new company for each country that you would use for VAT reporting purposes, and it would have its own LCY.

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Jens Glathe 6,092 on at

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Well, there is an AddOn for this :) There are some limitations, though, but you have a chance to show the "right" numbers to the local VAT authority. What we do (and sell) is transaction currency in the G/L and VAT entries. This records the original transaction currency, on all transactions where this is feasible. The "not so good" part comes when you need to ensure that all transactions for a country are in the currency of the country. This is not a given, you can ensure this only through strict setup (currency code in the customers/vendors, payments only in country currency with a bank account), or further customization (couple country code and currency code for all postings - this will take effect for postings with VAT). But this is resolvable.

With this, you can show reports in transaction currency for the countries. Et voila. Works for as many countries as you need.

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David E 25 on at

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Hi Jens,

Thank you for your reply! Do you know what this AddOn is called, and where I can download it?

Thanks!

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David E 25 on at

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Hi Marcell,

Thank you for your answer.

This function does, however, not fulfill the demands for the VAT report. The amounts needs to be shown in the exact amount in the currency issued. For example; if I create an invoice of 200 GBP with 20% VAT under UK VAT registration, the VAT report should show the amount £ 200 in base and £ 40 in VAT amount. The additional reporting currency is creating some exchange rate differences between the chosen currency and the LCY.

Also the additional reporting currency causes G/L registers in a lot of other places in the program that is not necessary.

Best regards,

David

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Jens Glathe 6,092 on at

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Hi David,

the name is Plexada P/4 Transaction Currency Advanced (yes I know, as if Microsoft's marketing team came up with a name). We have NAV2015 DE and W1 implementations, specific CUs on request. Regarding objects/pricing/documentation, feel free to send me a PM or email to info (at) plexada (dot) com.

Regarding download: Nope. This is an oldschool style horizontal AddOn, on the market since 2011, only changes in C/AL objects, and a few new ones. Some changes are on the extensive/excessive side, though. We're talking around 200 modifications in CodeUnit 12. And you can't really protect this type of modification, so no free download.

with best regards

Jens

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David E 25 on at

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The solution was to create a new table saving all original amounts from the original posting, and to display the VAT statement in that currency.

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Jens Glathe 6,092 on at

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What about VAT corrections due to discounts?

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