## (Europe) Setting Up European Union Functionality

This chapter provides overviews of the functionality that is commonly in use in European countries, value-added taxes (VAT) terminology and principles, and intracommunity VAT and discusses how to:

- Set up user-defined codes (UDCs) for European Union (EU) functionality.

- Set up next numbers for Intrastat reporting.

- Set up commodity code information.

- Enter cross-references for items and suppliers.

- Set up layout for the IDEP/IRIS interface.

- Set up intracommunity value-added taxes (VAT).

Note. The EU functionality discussed in this chapter applies to most of the EU countries supported by JD Edwards EnterpriseOne software. However, the basic Intrastat reports might not include all of the information required for all countries, because each country determines its own reporting requirements. Refer to the chapters for each country for country-specific EU reports.

### Understanding EU Functionality

This table provides an overview of EU setup and processes that you use in addition to the standard setup and processes provided in the base software.

Setup or Process | Description
UDCs | In addition to the base software UDCs, set up EU UDCs to work with: Intrastat reporting. See Setting Up UDCs for Intrastat Reporting. Invoices with an attached International Payment Instruction (IPI). See Setting Up UDCs for International Payment Instructions. Companies. Affiliated Companies (74/AC) Code Number (74/30) See Setting Up UDCs for European Companies.
Import and export of goods | In addition to the standard setup for items, suppliers, and companies, to work with imported and exported goods in the European Union: Set up commodity codes to identify the products that are exported from or introduced to the country. See Setting Up Commodity Code and Statistical Information. Enter cross-reference for items and suppliers to track the country of origin of goods. See Entering Cross-References for Items and Suppliers.
Bank account information | Countries in Europe commonly use the International Bank Account Number (IBAN) for banking transactions. JD Edwards EnterpriseOne software supports the use of the IBAN. See Understanding International Bank Account Numbers. Bank ID and bank account validation routines exist for: Belgium Finland France Italy Spain See Understanding Bank ID and Bank Account Validation.
Invoice processing | In addition to standard invoice processing, you can print invoices with an attached IPI. To print these invoices and attachments: Set up UDCs for IPIs. See Setting Up UDCs for International Payment Instructions. Set processing options for the invoice print program. See Setting Processing Options for Invoice Print with International Payment Instruction (R03B5053). Print invoices with attached IPIs. See Printing Invoices with an Attached International Payment Instruction.
Intrastat reporting (setup) | To set up Intrastat reporting: Review the overview about European Union reporting. See Understanding European Union Reporting. Set up UDCs. See Setting Up UDCs for Intrastat Reporting. Set up next numbers for Intrastat reporting. See Setting Up Next Numbers for Intrastat Reporting. Set up commodity codes. See Setting Up Commodity Code and Statistical Information. Set up cross-references between suppliers and items to show the country of origin. See Entering Cross-References for Items and Suppliers. Set up the IDEP/IRIS interface for certain countries. See Setting Up Layouts for the IDEP/IRIS Interface. Set the processing options for the Intrastat workfile programs. See Setting Processing Options for Intrastat Workfile Generation - Sales (R0018I1), Setting Processing Options for Intrastat Workfile Generation - Sales (R0018I1). See Setting Processing Options for Intrastat Workfile Generation - Procurement (R0018I2).
Intrastat reporting (using) | To print and purge Intrastat records: Populate the workfiles. See Populating the Intrastat Workfile. Revise the workfiles as necessary. See Revising Intrastat Information. Use the IDEP/IRIS Interface program (R0018I3) to generate an electronic Intrastat declaration in the format required for each country. See Using the IDEP/IRIS Interface for Intrastat Reporting. Purge records from the Intrastat table (F0018T). See Purging Records from the Intrastat Table (F0018T).
Other EU reporting | In addition to Intrastat reporting, you can generate these reports: EC Sales List Reports See Printing the EC Sales List Report (R0018L). EC Sale List - AR Report See Printing the EC Sale List - AR Report (R0018S).
Intracommunity VAT | See Understanding Intracommunity VAT. See Validating Tax ID Numbers.

### Understanding VAT Terminology and Principles

VAT is a noncumulative tax that tax authorities impose at each stage of the production and distribution cycle. If you work with VAT, you should understand these terms and principles:

Output VAT | Suppliers of goods and services must add VAT to their net prices. They must record output VAT for goods on the date that they issue invoices and for services on the date that they receive payment. The amount of VAT is determined by applying specific rates to the net selling prices of certain goods and services. Output VAT is also called: AP VAT Receivable Recoverable VAT Collectable VAT
Input VAT | Input VAT is the VAT paid by the purchaser of goods and services. If the purchaser is subject to output VAT, the purchaser can recover input VAT by offsetting it against output VAT. When input VAT exceeds output VAT, the purchaser can forward the VAT balance as a credit toward the tax authority for the next reporting period, or receive a cash refund, depending on the policies of the tax authority. Input VAT is also called: AR VAT Payable Deductible VAT
Nonrecoverable Input VAT | Input VAT cannot be recovered for: Goods and services that are not necessary for running the business. Expenses that are related to business entertainment. Transport of persons. Oil-based fuels and lubricants that are transformed and then resold. Goods that are provided free of charge or at a substantially reduced price. Purchase of cars. Services related to goods that are normally excluded from the right of recovery.

See Also

(CZE) Printing VAT and Other EU Reports for the Czech Republic

Processing French VAT

(HUN) Printing VAT and Other EU Reports for Hungary

(ITA) Processing VAT for Italy

Printing VAT Reports for Poland

(RUS) Printing VAT Purchase and Sales Reports

### Understanding Intracommunity VAT

Goods sold from a taxable entity in one EU member state to a taxable entity in another EU member state are treated as exempt from VAT. The buyer is then subject to output VAT on the transaction in the buyer's own EU member state. In some cases, the buyer is entitled to recover the amount of the output VAT as input VAT.

In the JD Edwards EnterpriseOne Accounts Payable system, you record the VAT on these transactions by setting up a tax rate/area for intracommunity VAT. The VAT payable is compensated with the VAT receivable, and both amounts must be displayed in the relevant reports. The reports must also display the transactions that were exempt from VAT.

In most EU countries, you must submit various reports on VAT, including the VAT that has been exempted on intracommunity transactions. To record the exempted VAT on transactions between EU members, you need to set up a tax rate for intracommunity VAT.

Set up the intracommunity VAT tax rate/area with two tax rates:

- The VAT rate that would be used if the transaction were not exempt.

- The second tax rate, which is the negative equivalent of the first tax rate.

  For example, if the first tax rate is 16 percent, the second tax rate is –16 percent. The two tax rates net to zero.

To qualify for the intracommunity VAT exemption, the buyer's VAT registration number, including the European Union Member State National Identification Number, must be quoted on the supplier's invoice.

Reporting Considerations

You must print the information for sales and purchases that are subject to intracommunity VAT on separate VAT reports. To report on intracommunity VAT separately, use data selection to select transactions with the tax rate/area for intracommunity VAT.

### Setting Up UDCs for European Union Functionality

Set up UDCs for:

- IPI.

- Intrastat reporting.

- Companies.

#### Setting Up UDCs for International Payment Instructions

Set up these UDCs before processing invoices with IPI attachments.

IPI - Address Line Sequencing (00/IA)

The IPI - Address Line Sequencing UDC table (00/IA) determines the combination of the values for the postal code, city, and country that the system includes as the second address line of the ordering customer's address on the IPI.

These values are hard-coded and consistent with the requirements for IPIs. The European Committee for Banking Standards publishes the requirements for IPIs.

IPI - Charges Paid By (00/IC)

The IPI - Charges Paid By UDC table (00/IC) contains values that specify the entity that is responsible for paying the bank charges that are associated with the IPI. These values are hard-coded and consistent with the requirements for IPIs. The European Committee for Banking Standards publishes the requirements for IPIs.

IPI - Form Types (00/IF)

The IPI - Form Types UDC table (00/IF) contains hard-coded values that represent the types of preformatted IPI forms that are available to use. The values in this UDC are consistent with the requirements for IPIs. The European Committee for Banking Standards publishes the requirements for IPIs.

IPI - Languages and Countries (00/IL)

Most of the values for the UDCs for IPIs are hard-coded. However, you must set up values for the IPI - Languages and Countries (00/IL) UDC table.

IPIs must be printed in English, but they can also contain a secondary language. You specify the secondary language by setting up a value in the IPI - Languages and Countries UDC table (00/IL). Some countries require that you print IPI forms with a secondary language; for some countries, the use of a secondary language is optional. The European Committee for Banking Standards publishes the requirements for IPIs.

When you set up the IPI - Languages and Countries UDC, you complete the Special Handling field with a value from the Language (01/LP) UDC table. The system uses the value in the Special Handling field to determine the secondary language that prints on the IPI form. If you do not want the system to print a secondary language on the IPI form, set the Special Handling code for a country to E (English). Generally, you use the language of the country where the customer's bank is located.

You can set up only one language per country. For example, for banks in Belgium, you must specify a secondary language, but you can select to use French, German, or Dutch. In the 00/IL UDC, you can set up only one of those languages for Belgium; you cannot set up a value for each language.

This table shows examples of the languages that you can set up for countries:

Codes | Description 01 | Description 02 | Special Handling
AT | Austria | O - German | G
BE | Belgium | R - French, Dutch, or German | F
CH | Switzerland | O - German, French, or Italian | F
DE | Germany | R - German | G
DK | Denmark | Unspecified - Danish | DN
ES | Spain | R - Spanish | S
FI | Finland | R - Finnish and Swedish | FN
FR | France | R - French | F
GB | Great Britain | Not applicable | E

IPI - Details of Payment (00/IP)

The IPI - Details of Payment UDC table (00/IP) determines the data that appears in the Details of Payment section on the IPI. These values are hard-coded and are consistent with the requirements for IPIs. The European Committee for Banking Standards publishes the requirements for IPIs.

#### Setting Up UDCs for Intrastat Reporting

Many fields throughout the system accept UDCs as valid values. You must set up several UDCs to provide valid information for Intrastat reporting.

Set up these UDCs to use Intrastat reporting:

- Country Codes (00/CN).

- European Union Members (00/EU).

- Intrastat Regime Code (00/NV).

- State and Province Codes (00/S).

- Condition of Transport (00/TC).

- Mode of Transport (00/TM).

- Triangulation Tax Rates (00/VT).

- Shipping Commodity Class (41/E).

- Purchasing Reporting Codes 01 through 05 (41/P1 through 41/P5).

- Sales Reporting Codes 01 through 05 (41/S1 through 41/S5).

- Freight Handling Code (42/FR).

- European Community Members (74/EC).

- Intrastat Declaration Type (74/IT).

- Nature of Transaction - EU (74/NT).

- Arrivals or Dispatchings (74/TD).

Country Codes (00/CN)

You must specify a country code in the address book records for the branch/plants, customers, and suppliers.

This table shows examples of country codes:

Codes | Description 01 | Special Handling
AE | United Arab Emirates (UAE) | 784
AF | Afghanistan | 004
AG | Antigua and Barbuda | 028
AR | Argentina | 032
AT | Austria | 040
AU | Australia | 036

To find the country code for the branch/plants, the system searches for records based on the address number in the Inventory Constants table (F41001). If no address number is specified, the system uses the address number that is specified in the Business Unit Master table (F0006).

Transaction eligibility for Intrastat reporting is based on the country of the customer or supplier, the country of origin of the goods, and the country of the declarant.

Important! Do not use blank as the default country code. You must use a nonblank country code on the address book records for the country code to be included on Intrastat reports.

European Union Members (00/EU)

Each European Monetary Union (EMU) member currency must be set up in UDC table 00/EU.

The User-Defined Codes form (00/EU) contains default currency codes and effective dates when the country joins the EMU. Verify the existing values and ensure that a valid currency code exists for the euro (EUR).

The Special Handling Code field is a text field, not a date field. You must enter the effective date in this format, regardless of the date preferences:

DD/MM/YYYY

Each currency has an effective date, which enables you to enter existing EMU currencies now and, at a later time, add other currencies that join the EMU. Enter the effective date for a currency in the Special Handling Code field on the User-Defined Codes form (00/EU), as shown:

Codes | Description 01 | Description 02 | Special Handling | Hard Coded
EUR | Euro | E - Electronic Format Euro | January 01, 1999 | N

Intrastat Regime Code (00/NV)

Use the Intrastat Regime UDC to set up the Nature of VAT Regime codes. The Nature of VAT Regime code is similar to the nature of transaction code (NAT) and is applicable only to certain countries.

(FRA) Nature of VAT Regime codes are commonly used in France.

Important! If the reporting requirements for the country do not include Nature of VAT Regime, you must add a blank code to UDC 00/NV to prevent errors in the Intrastat Revision table (F0018T).

This table shows examples of Intrastat regime codes:

Codes | Description 01
10 | Permanent export
11 | Permanent export after rework
21 | Temporary export
22 | Temporary export after rework

State and Province Codes (00/S)

For countries that require regional information, use the State field in the address book record to specify the region. Set up state and province codes to identify the region of origin for shipments or the region of destination for purchases.

The system searches for address book records based on the address number in the Inventory Constants table. If no address number is specified, the system uses the address number that is specified in the Business Unit Master table.

This table shows examples of state and province codes:

Codes | Description
* | All states
AB | Alberta
AI | Arctic Islands
AK | Alaska
AL | Alabama
AM | Amazonas
AR | Arkansas

Condition of Transport (00/TC)

You set up Condition of Transport codes (00/TC) to indicate how goods are transported.

You must set up values in UDC 00/TC that correspond to the first three characters of the values that you set up in the Description 02 field in the Freight Handling Code UDC table (42/FR). For example, if you set up a value in UDC 42/FR for Cost, Insurance, and Freight and use CIF as the value in the Description 02 field, you must set up a code of CIF in UDC 00/TC.

You can set up default conditions of transport by using the Supplier Master program (P04012). Enter the condition of transport in the Freight Handling Code field. When you enter purchase orders, this information appears in the purchase order header fields.

This table shows examples of condition of transport codes:

Codes | Description 01
CIF | Cost, Insurance, and Freight
DDP | Delivered Duty Paid
DDU | Delivered Duty Unpaid
EXW | Ex Works
FOB | Free on Board

Mode of Transport (00/TM)

You set up codes for the modes of transport on UDC table 00/TM (Mode of Transport). The first eight code values are predefined for EU trade reporting.

This table shows examples of mode of transport codes:

Codes | Description 01
1 | Transport by sea
2 | Transport by rail
3 | Transport by road
GRD | Ground Service
LTL | Less than Truckload
NDA | Next Day Air

The fifth position of the Description 02 field of the Freight Handling Code UDC (42/FR) is used to indicate the mode of transport; it corresponds to the values in UDC 00/TM. To assign a default mode of transport to a supplier, complete the Freight Handling Code field on the Supplier Master Revision form of the Supplier Master program. Setting up a supplier in this way causes freight handling and mode of transport information to appear in purchase order header fields.

Triangulation Tax Rates (00/VT)

If you use the EC Sales List (R0018S), you must list the tax rates that are used for trade triangulation transactions. Transactions that use any of the tax rates that are listed on this UDC are flagged as trade triangulation transactions on the EC Sales AR.

Shipping Commodity Class (41/E)

Use Shipping Commodity Class codes (41/E) to further identify the products that the company imports or exports.

To comply with Intrastat guidelines, commodity codes must have a corresponding commodity value.

Use the Intrastat Commodity Code form to set up commodity values and supplemental units of measure for commodity codes.

This table shows examples of shipping commodity classes:

Codes | Description 01
Blank | Blank - Shipping Comm Class 41/E
CSE | Consumer Electronics
FPD | Food Products
LST | Livestock

Purchasing Reporting Codes 01 through 05 (41/P1 through 41/P5)

Use purchasing reporting codes 01 through 05 (41/P1 through 41/P5) to set up nature of transaction codes specifically for purchase order transactions. Using these UDC tables to indicate the nature of transaction for the item is an alternative to using UDC 74/NT to indicate the nature of transaction.

You can designate any one of the five purchasing reporting codes to specify the nature of transaction for individual items. You must indicate the reporting code that you are using for nature of transaction in the processing options for the Intrastats Tax Update - Purchasing program (R0018I2). The reporting code that you specify in these processing options should correspond to the reporting code that you use to identify the nature of transaction for the item in the Item Master program (P4101). Enter 1 for table 41/P1, 2 for table 41/P2, and so on.

This table shows examples for purchase reporting codes:

Codes | Description 01
Blank | Blank - Commodity Class 41/P1
A | Aluminum
B | Brass
C | Copper
DRG | Drugs-Pharmaceutical
ELC | Electrical

When you update the Intrastat Revision table, you use a processing option to specify the UDC that you want the system to use to find the applicable information.

Sales Reporting Codes 01 through 05 (41/S1 through 41/S5)

Use these codes to identify the type of import and export rules to which an item is subject. The import and export rules depend on the way that a product is moved; whether it is for sales, purchases, or leases; or other reasons.

You can set up nature of transaction codes specifically for EU reporting on UDC table 74/NT, or you can use the UDC tables from the Inventory Management system (specifically, 41/P1–P5 and 41/S1–S5). You can also create a UDC table to store nature of transaction codes.

You can designate any one of the five sales reporting codes to specify the nature of transaction for individual items. You must indicate the reporting code that you are using for nature of transaction in the processing options for the Intrastat - Tax Update - Sales program (R0018I1). The reporting code that you specify in these processing options should correspond to the reporting code that you use to identify the nature of transaction for the item in the Item Master program (P4101). Enter 1 for table 41/S1, 2 for table 41/S2, and so on.

This table shows examples of sales reporting codes:

Codes | Description 01
APP | Apparel Section
AVA | Aviation
COM | Commuter Bike Section
MNT | Mountain Bike Section
SAF | Safety Equipment Section
TRG | Touring Bike Section

When you update the Intrastat Revision table (F0018T), you use a processing option to specify the UDC that you want the system to use to find the applicable information.

Freight Handling Code (42/FR)

You use freight handling codes to identify various freight information. To comply with EU requirements, modify the freight handling codes to include the codes that you set up for the Condition of Transport, Condition of Transport extension, and Mode of Transport tables. For this action, enter the codes for the conditions of transport, conditions of transport extension, and modes of transport in the second description field for the table.

Note. You must set up one freight handling code line in UDC 42/FR for each separate combination of Condition of Transport, Condition of Transport extension, and Mode of Transport tables.

The Description 02 field accepts up to 15 characters. When you modify freight handling codes, use the first three characters in the field to specify the conditions of transport. Use the fourth character to indicate the COTX extension (the code for the place indicated in the contract of transport). The COTX extension is required only in certain countries. Enter the code for mode of transport as the fifth character of the second description.

Note. You should define the codes that indicate the various conditions and modes of transport on their respective UDC tables, in addition to indicating the conditions and modes of transport on the freight handling codes. If the conditions and modes of transport are not defined in their respective tables, you receive an error when you try to modify the condition or mode of transport in the Intrastat Revision table.

For IDEP, the Incoterms field accepts only these values:

- C: Main transportation expenses paid (CFR, CIF, CPT, CIP).

- D: Arrival (DAF, DES, DEQ, DDU, DDP).

- E: Depart (EXW).

- F: Main transportation not paid (FCA, FAS, FOB).

For IDEP, set up UDC 42/FR with these codes, rather than the standard transport conditions, in the first three positions of the Description 02 field.

This table shows examples of freight handling codes:

Codes | Description 01 | Description 02 | Special Handling
A | Free Alongside Ship | FAS | Not applicable
BRR | Bypass Routing and Rating | Not applicable | 9
C | Freight Collect | Not applicable | 1
D | Delivered, Duty Paid | DDP | Not applicable
F | Free On Board - Our Dock | FOB | Not applicable
FP | Freight Pre-pay and Add | Not applicable | Not applicable

European Community Members (74/EC)

Only transactions between EU members are included in the Intrastat Revision table. Verify that a one-to-one relationship exists between the country codes that you set up in UDC 00/CN and the country codes for all EU countries on UDC table 74/EC. When you run the Intrastat update programs, the system cross-references the country codes that you specify for customers, suppliers, and branch/plants in UDC table 00/CN to the codes in 74/EC.

This table shows examples of EU country codes:

Codes | Description 01
AT | Austria
BE | Belgium
BL | Belgium and Luxembourg
DE | Germany
DK | Denmark
ES | Spain
FI | Finland
FR | France
GB | Great Britain

Intrastat Declaration Type (74/IT)

Set up UDC 74/IT to specify whether the IDEP declaration is fiscal, statistical, or complete.

This table shows examples of Intrastat declaration type codes:

Codes | Description 01 | Special Handling
1 | Fiscal | F
2 | Statistical | S
3 | Complete | C

You specify the character that the system uses to populate the Intrastat declaration in the special handling code for each value. The code specified in the special handling code is written to the text field in the Text Processor Detail Table (F007111) when you process the IDEP/IRIS Interface (R0018I3). This special handling code is also used to determine the VAT registration number for sales transactions. For statistical declarations, the system uses the ship to address number. For fiscal or complete declarations, the system uses the sold to address number.

The default value is 3 (complete).

Nature of Transaction - EU (74/NT)

Use Nature of Transaction (74/NT) to set up nature of transaction codes specifically for EU reporting.

Set up UDC table 74/NT following these steps:

- Use the Codes field to enter a concatenated value to identify the nature of transaction.

  Concatenate these values in sequence without any separators, such as commas or spaces: Company Number, Order Document Type, and Line Type.

- Enter the nature of transaction code in the Description 02 field.

- Enter the nature of the VAT regime (statistical procedure) in the Special Handling field, if required.

This table shows examples of nature of transaction codes:

Codes | Description 01 | Description 02
00100XIS | Export to Customer | 16
00100COC | Credit to Customer | 16
00100SOS | Stock Inv Item | 10
00100X2S | Transfer from Branch | 10
00200SOS | Stock Inv Item | 11
00200X1S | Export to Customer | 16
00200X2S | Transfer from Branch | 11

When you update the Intrastat Revision table, you use a processing option to specify the UDC table that you want the system to use to find the applicable information.

(CZE) Fiscal Area (74/SG)

Set up codes that you use when you assign special goods and movements. You assign the code for special goods and movements when you use the Commodity Codes program (P744102) to enter information for Intrastat reporting. You obtain these codes from the government.

(GBR) Arrivals or Dispatchings (74/TD)

If you use the Single European Market Declaration (SEMDEC) interface for Intrastat submissions, set up a UDC for each document type that is used in Intrastat transactions to indicate whether the document type corresponds to the arrival (purchase) or dispatch (sale) of goods.

To set up UDC 74/TD, enter the same codes in the Codes field that you use for document types on UDC 00/DT. The Description 01 field must contain either Arrival or Dispatch. The system uses UDC 74/TD, in conjunction with UDC 00/DT, to determine whether the transaction represents the arrival or dispatch of goods for Intrastat reporting purposes. You need to include on UDC 74/TD only those document types that are used in sales or purchasing.

Note. If you do not set up UDC 74/TD, the system assumes that all sales are dispatches and that all purchases are arrivals.

#### Setting Up UDCs for European Companies

Set up these UDCs to specify company parameters.

Affiliated Companies (74/AC)

You must set up UDC 74/AC so that the system can determine whether the customer or supplier company is affiliated with the reporting company. You must list the address book records of all companies with which the reporting company is affiliated. The system uses the Affiliated Companies UDC table 74/AC to select records for reporting, and to group data for affiliated companies and nonaffiliated companies in this manner:

Type of Company | Usage
Affiliated companies | If the address book number from a record in the Accounts Payable Ledger table (F0411) matches an address book record in UDC table 74/AC, the system selects the record for reporting for affiliated companies.
Nonaffiliated companies | If the address book number from a record in the F0411 table does not match an address book record in UDC table 74/AC, the system selects the record for reporting for nonaffiliated companies.

Code Number (74/30)

Set up code numbers to indicate the type of service industry. For example, you might set up these values:

- 014: Transportation by domestic air carrier.

- 015: Transportation by foreign air carrier.

- 016: Transportation by other carrier.

### Setting Up Next Numbers for Intrastat Reporting

When you run the Text File Processor program (P007101) when working with Intrastat reports, the program assigns the batch number and interchange from line 7 of Next Numbers System 00. The Text File Processor program assigns the message number from line 5 of Next Numbers System 74. You must set up these numbering systems.

### Setting Up Tax Rate Areas for Intracommunity VAT

This section provides an overview of tax rate areas for intracommunity VAT and lists the forms used to set up tax rate areas for intracommunity VAT.

#### Understanding Tax Rate Areas for Intracommunity VAT

Since the creation of the Single Market in 1993, sales and purchases among EU members are not subject to VAT. To record VAT on transactions between EU members, you need to set up a tax rate/area for intracommunity VAT.

(ESP) In Spain, you must report on VAT-exempt transactions.

You set up the tax rate/area for intracommunity VAT as you would any other tax rate/area, except that you must use three tax rates:

- The first tax rate is 0 because the transaction is exempt from VAT.

- The second tax rate is the VAT rate that would be used if the transaction were not exempt.

- The third tax rate is the negative equivalent of the second tax rate.

  For example, if the second tax rate is 16 percent, the third tax rate would be –16 percent. The two tax rates net to zero.

For each type of tax rate code, you can set up specific GL offsets. The system uses the GL offset, which is defined in the PTxxxx AAI, to post the journal entries to different VAT accounts in the chart of accounts. For example, you might have a Domestic VAT account and an EU VAT account.

After you set up tax rate areas in the Tax Rates/Area Revisions program, use the Tax Areas - Tag File Maintenance (P744008) program to specify whether a tax rate area is for intracommunity VAT. You access the Tax Areas - Tag File Maintenance program by selecting Regional Info from the Row menu on the forms in the Tax Rates/Area Revisions program.

#### Forms Used to Set Up Regional Information for Intracommunity VAT

Form Name | FormID | Navigation | Usage
Work With Tax Rate/ Areas | W4008A | Tax Processing and Reporting (G0021), Tax Rate/Areas. | Review and select tax rate/area records.
Tax Area - EMEA - Revisions | W744008A | On the Work With Tax Rate/ Areas form, select Regional Info from the Form menu. | Indicate that the tax rate/area uses intracommunity VAT.

### Setting Up Commodity Code and Statistical Information

You use commodity codes to identify the products that are exported from or introduced to the country. Commodity code information is stored in the Intrastat Commodity Code Additional Information table (F744102). This section lists a prerequisite and discusses how to set up commodity codes.

#### Prerequisite

Set up shipping commodity class codes in UDC 41/E.

#### Forms Used to Set Up Commodity Codes and Statistical Information

Form Name | FormID | Navigation | Usage
Intrastat Commodity Code | W744102B | Set Up (G74STAT4), Commodity Codes On the Work With Intrastat Commodity Code form, click Add. | Add commodity codes.
Commodity Code Additional Information | W744102C | On the Work With Intrastat Commodity Code form, select Add Info from the Form menu. On the Intrastat Commodity Code form, select Add Info from the Form menu. | (CZE) Enter the statistical code and special goods and movement code for items by commodity code.

#### Setting Up Commodity Codes

Access the Intrastat Commodity Code form.

Shipping Commodity Class | Enter a value that exists in the Shipping Commodity Class (41/E) UDC table that represents an item property type or classification (for example, international shipment handling). The system uses this code to sort and process similar items. This field is one of three classification categories available primarily for inventory and shipping purposes.
Commodity Code | Enter the commodity code number for the item.
Supplementary UOM (supplementary unit of measure) | Enter a value that exists in the Unit of Measure (00/UM) UDC table to specify the quantity in which to express an inventory item. Examples of values are: CA (case) BX (box)
Volume Conversion Factor | Enter the weight of one unit of an item, expressed in the primary unit of measure. Enter the density of the product in the Volume Conversion Factor field only if the product is typically measured in liquid volume but needs to be reported in kilograms. The system multiplies the volume of the product by the density that you enter to calculate the mass of the product.

#### (CZE) Adding Statistical Information

Access the Commodity Code Additional Information form.

Statistical Code | Enter the additional code for Intrastat reporting. This code represents more detail in the goods names and is related to the commodity code. For example, commodity code 27101121 (Special Petrol, white spirit) has these additional codes: 10 - Special Petrol - White spirit as a component for production of motor petrol 20 - Special Petrol - White spirit as a component for production of diesel oil 90 - Special Petrol - White spirit for different application than as a component for production of motor fuels
Special goods and movements | Enter a value that exists in the Fiscal Area (74/SG) UDC table to represent a special movement of arrived goods or a shipment of arrived goods.

### Entering Cross-References for Items and Suppliers

This section provides an overview of cross-references for items and suppliers and discusses how to enter cross-references.

#### Understanding Cross-References for Items and Suppliers

An important element of including purchases on Intrastat reports is tracking the country of origin of goods. In some countries, Intrastat reports must contain the country of origin and the original country of origin for each item.

For example, a German company might place a purchase order with a French supplier for goods manufactured in France. These goods are stored in a warehouse in Belgium, so the actual delivery comes from Belgium. The country of origin is Belgium, but the original country of origin is France.

Depending on the business and the suppliers, you might need to set up a more advanced relationship among the supplier, the item, and the country of origin. You can cross-reference this information in the Intrastat Item/Supplier Cross Reference program (P744101):

- Supplier

- Item

- Country of origin

- Original country of origin

The Supplier and Item Cross Reference program stores information in the Intrastat Supplier/Item Cross Reference Table (F744101). The Intrastats - Update - Purchasing program (R0018I2) retrieves the cross-referenced information if you specify in the processing options to use table F744101.

Note. The system retrieves the country of origin from the address book record of the supplier. The supplier's country of origin can be overridden when you update the Order Address Information table (F4006) for an individual order. If necessary, you can override the country of origin in the Country of Origin field (ORIG) in table F744101 and specify in the processing options of the Intrastats - Update - Purchasing program (R0018I2) to use table F744101.
The system uses the Country of Origin field (ORIG) to determine transaction eligibility for Intrastat reporting. The Original Country of Origin field (ORGO) is for information only.
Note also that in the United Kingdom, country of origin is called country of consignment, and original country of origin is called country of origin.

#### Form Used to Enter Cross-References for Items and Suppliers

Form Name | FormID | Navigation | Usage
Intrastat Cross Reference | W744101B | Set Up (G74STAT4), Supplier and Item Cross Reference On the Work the With Intrastat Cross Reference form, click Add. | Add cross-references.

#### Entering Cross-References

Access the Intrastat Cross Reference form.

Address Number | Enter *ALL in the Address Number field to indicate that the item always comes from the specified country of origin and original country of origin, regardless of supplier. When the system searches for a specific record in the Intrastat Supplier/Item Cross Reference Table (F744101), it first searches for a record that matches the item number and address number. If no record is found, the system searches for a record that matches the address number, with an item number of *ALL. If no record is found, the system then searches for a record that matches the item number with an address number of *ALL.
Country of Origin | Enter a code (00/CN) that identifies the country in which an item originates. This information is useful to organizations that must periodically separate their inventory by source.
Original Country of Origin | Enter a code (00/CN) that indicates the original country of origin of goods. For example, you are a German company that places a purchase order with a French supplier for goods that are manufactured in France but are warehoused in and delivered from Belgium. The country of origin is Belgium, but the original country of origin is France.

### Setting Up Layouts for the IDEP/IRIS Interface

This section discusses how to set up layouts for the IDEP/IRIS interface.

Before importing this information from an external system, such as from JD Edwards EnterpriseOne software to IDEP/CN8, you need to specify the format of the file to be imported. After you specify the format, you need to indicate the structure of the file to be imported (field sequence, field number, field size, and so forth) into IDEP/CN8.

This table illustrates the structure that you must set up for an IDEP/CN8 file:

Field | Position [Length]
Declarant Reference Number | 1-14[14]
Partner VAT number | 16-35[20]
Original Country of Origin | 37-39[3]
Country of Origin | 41-43[3]
Nature of Transaction A | 45-45[1]
Nature of Transaction B | 47-47[1]
Statistical Procedure | 49-53[5]
Mode of Transport | 55-55[1]
Port of Entry | 57-60[4]
Region of Origin | 62-63[2]
Terms of Delivery | 65-67[3]
Related Location 1 Identity | 69-69[1]
Commodity Code | 71-78[8]
Goods Description | 80-219[140]
Supplementary Unit | 221-233[13]
Net Mass | 235-248[12,2]
Invoice Value | 250-262[13]
Foreign Invoice Value | 264-276[13]
Statistical Value | 278-289[10,2]
Foreign Statistical Value | 291-302[10,2]
Currency Code | 304-306[3]
Declaration Type | 307-307[1]

Note. The comma in the Net Mass, Statistical Value, and Foreign Statistical Value field lengths listed above denotes that a decimal point can be used before the last two characters in those field lengths.

CBS-IRIS - Netherlands

The Dutch version of CBS-IRIS requires no fixed record layout for the import file. However, you must map the data coming from an import file in CBS-IRIS.

Note. The data to be imported must be in flat file format. Also, you must indicate the first position and the number of positions of each field to be imported from the flat file. The number of positions to import should not exceed the number of positions that is defined in CBS-IRIS for the field. The fields cannot overlap. You should end each field with a carriage return and a line feed.

In CBS-IRIS, the file containing the data to be imported should be a blank-separated txt-file (this type of file can be compared with a Microsoft Excel file that is saved as a text file with blanks as separation characters).

In CBS-IRIS, you can leave the fields blank, as long as the positions defined are correct (that is, each blank stands for one position in the record).

This table illustrates the structure that you must set up for a CBS-IRIS - Holland file:

Field | Position [Length]
Declarant Reference Number | 1-10[10]
Del VAT Number | 12-23[12]
Partner VAT Number | 25-42[18]
Original Country of Origin | 44-46[3]
Country of Origin | 48-50[3]
Nature of Transaction A | 52-52[1]
Statistical Procedure/Nature of VAT Regime | 554-55[2]
Mode of Transport | 57-57[1]
Port of Entry | 59-60[2]
Commodity Code | 62-69[8]
Tariff Code | 71-72[2]
Currency Code | 74-74[1]
Supplementary Unit | 76-85[10]
Net Mass | 87-96[10]
Invoice Value | 98-107[10]
Statistical Value | 109-118[10]
Commodity Flow | 120-120[1]
Reporting Period | 122-127[6]

CBS-IRIS - Germany

The German version of CBS-IRIS requires no fixed record layout for the import file. However, you must map the data coming from an import file. For each field imported in the flat file format, you need to set up the beginning position and the length of the field. This table illustrates the structure that you must set up for a CBS-IRIS - Germany file:

Field | Position [Length]
Declarant VAT Number | 1-16[16]
Original Country of Origin | 18-20[3]
Country of Origin | 22-24[3]
Nature of Transaction | 26-27[2]
Statistical Procedure/Nature of VAT Regime | 29-33[5]
Mode of Transport | 35-35[1]
Port of Entry | 37-40[4]
Region of Origin | 42-44[3]
Commodity Code | 46-53[8]
Currency Code | 55-55[1]
Supplementary Unit | 57-65[9]
Net Mass | 67-75[9]
Invoice Value | 77-85[9]
Statistical Value | 87-95[9]
Commodity Flow | 97-97[1]
Reporting Period | 99-104[6]