EU third-party purchase transactions
European Union (EU) third-party trade occurs when you receive a purchase invoice from a customer in one EU country/region, and the products are sent to a different EU country/region without entering the country of residence. The transaction amount can be identified and reported separately to comply with some EU countries'/regions' value-added tax (VAT) reporting and VAT Information Exchange System (VIES) requirements. Microsoft Dynamics 365 Business Central enables purchase transactions to be set up as EU third-party trade. Posted EU third-party transactions can be filtered in VAT statements and excluded from the amount in the Sales to Customer column of the VAT-VIES Declaration Tax Auth report.
Even if the feature is preinstalled as an extension, it isn't activated by default. Follow these steps to activate the feature.
- Select the
icon, go to the Feature Management workspace, and then select the related link. - In the list, find and select Feature update: Replace the existing EU 3-Party Purchase functionality with the new EU 3-Party Trade Purchase extension.
- In the Enabled for column, select All users.
Note
If you use the German or Italian localization, you won't be able to enable this app because it's not compatible with certain VAT features in those localizations.
Enable EU third-party trade functionality for a purchase
- Select the icon, enter VAT Setup, and then select the related link.
- On the VAT Setup page, mark the Enable EU 3-Party Purchase field.
Use EU third-party trade functionality
- Select the icon, enter Purchase Invoices (or another purchase document), and then select the related link.
- Select an existing purchase invoice, or select New to create a new one.
- On the Invoice Details FastTab, select the EU 3-Party Trade checkbox.
- Select OK.
Include or exclude EU third-party trade records on the VAT statement
Select the
icon, enter VAT Statements, and then select the related link.On the VAT Statement page, select one of the following options to show EU third-party trade records by using the EU 3-Party Trade Filter field.
Option Description All Show all records, regardless of whether the EU 3-Party Trade field in documents was marked. EU3 Show only records where the EU 3-Party Trade field in documents was marked. Non-EU3 Show only records where the EU 3-Party Trade field in documents wasn't marked.