D365 Finance & Operations and Dynamics AX Forum

Expand all | Collapse all

One legal entities has VAT registration numbers in several countries

  • 1.  One legal entities has VAT registration numbers in several countries

    Posted Apr 15, 2020 11:55 AM
    Hi
    I am supporting companies who have sites and/or warehouses in multiple countries and have a VAT number in each of the countries.

    For example a Danish company owns a production plant and warehouse in Poland.
    The company has both a Polish and a Danish VAT number. Whenever it delivers goods from Poland, it must apply Polish VAT, and if it delivers from Denmark it must apply Danish VAT. The same customer can receive the same item from both Denmark and Poland. So there is no unique relation between site and item, or customer and item. It is depending on availability of the goods.

    We can set up Sales Tax codes attached to different sales tax authorities through the settlement period and add the code to an item sales tax group. But is it possible to create a setup where Dynamics add the item sales tax group to the sales order line based on the warehouse or site?
    Also: Is there a way to make the correct VAT registration number (either the Polish or the Danish) appear on the sales invoices? I am aware that this will require that each packing slip is invoiced individually, so that it will only contain goods from one site.

    Further more, in this example both company and plant/warehouse is located in EU countries, which requires reporting of EU Sales and Intrastat. When items are delivered from the Polish site to a polish customer it must be reported as domestic sales to the Polish authorities in the Polish report format, and if the same customer receives goods from the Danish site, it must be reported as EU Sales to the Danish Authorities in the Danish report format. If anybody has a suggestion for how to handle this, it will be appreciated.

    I have met this requirement from several Danish companies within several Dynamics versions - hence the hashtags below. Up until now I have always advised to set up individual legal entities. But it is becoming more and more common.

    #D365FO, #AX2012, #AX2009


    ​​​​

    ------------------------------
    Kit Jeppesen
    CGI Technologies and Solutions Inc.
    Montreal QC
    ------------------------------


  • 2.  RE: One legal entities has VAT registration numbers in several countries

    Posted Aug 26, 2021 05:10 AM
    Hello Kit, did you manage to find a solution for this requirement in the end? I am working on a similar scenario at the moment and I find myself stuck without a solution.

    ------------------------------
    Stefan Jevtic
    Avanade
    Seattle WA
    ------------------------------



  • 3.  RE: One legal entities has VAT registration numbers in several countries

    GOLD CONTRIBUTOR
    Posted Sep 13, 2021 10:07 AM
    Hi Kit and Stefan,

    It's only in preview for now, but there is a feature that deals with "supporting multiple VAT registrations in one legal entity". I just managed to enable it in a CHE and haven't done any testing yet, but from the documentation it looks promising.

    https://docs.microsoft.com/en-us/dynamics365/finance/localizations/emea-multiple-vat-registration-numbers

    Good luck!

    ------------------------------
    Kerstin Newman
    Business Analyst
    StarTech.com
    London ON
    ------------------------------



If you've found this thread useful, dive deeper into User Group community content by role