How to handle EU trade (Intra-Community Supplies / Acquisitions)

[Volker Voßkämper]

Hello,

handling EU trade has special needs in handling taxes if both involved businesspartners have a valid tax id.

This is described in detail here:

• http://www.revenue.ie/en/tax/vat/leaflets/VAT-eu-intra-community-acquisitions.html
• http://www.revenue.ie/en/tax/vat/guide/intra-community-supplies.html

or in german:

• http://www.rechnungswesen-info.de/innergemeinschaftliche_lieferung.html
• http://www.rechnungswesen-info.de/buchungen_forderungen_innergemeinschaftlich.html
• http://www.rechnungswesen-info.de/buchungen_verbindlichkeiten_innergemeinschaftlich.html

From my understanding there are some missing features to fully support this:

• global regions (across countries - not really needed but helpful to not define a tax per country)
• product accountig definition records and defaults in product category depending on country or global region (this is at least needed for Product Expense/Revenue)
• a tax rate that is double booked but not printed on purchase order and only selected if vendor tax id is available
• a zero tax rate on sales order only selected if customer tax id is available

If someone just need a correct order/invoice on paper there is a workaround:

• create a tax reate with SO Tax exempt set  and a rate of 0
• set the businesspartner to SO/PO Tax exempt if a valid tax id is available

Now orders show correct values without tax.

But if you want to export accounting data into an external accounting system or fully use iDempieres accounting this is not enough.

I am wondering if there are any company in EU using Adempiere/iDempiere and how they work around this limitation.

Regards

Volker

[Daniel Tamm]

Hi,

I'm supporting two iDempiere/Adempiere clients that trades with both services and goods in the EU and there are working "workarounds" to make it work quite nicely.

The only thing I'm missing is actually the "global regions" that you mention, because it would enable us to put countries in a single tax region and have the same tax rules apply to all in the same group of countries.

Currently we have to define tax rules for every country in the EU that we trade with (the same rules but one set for each country).

The accounting for us works just as you specify (double booking but the total is 0). I'll try to find time as soon as possible to put an example configuration on the iDempiere wiki.

The general idea is to have a "summary tax level" where the countries are specified and two sub-taxes where one is negative and one is positive and set the accounting on the sub-taxes.

/Daniel

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[blacklevel]

Hi,

thank you, Volker, for bringing this up and thank you, Daniel, for hinting at a possible workaround. I am also very interested in how this case can be handled. 

On my setup we have the common case where Google sends a monthly invoice from Ireland to Germany where the "reverse charge" tax case applies. Until now I am unable to get the accouting right for this.

Best Regards

Michael

[Volker Voßkämper]

hi Daniel,

great to hear from your workaround for the tax. I hope you find the time to document this example in the wiki soon :-)

But for me this is only half way because at least in germany you must separate the expenses and revenues between domestic, intra-community and other abroad.

Is this not relevant to your clients?
Do they use adempiere accounting or an external accounting system and if external, do they export the data?

Best Regards
Volker