Intra-community acquisition / intra-community delivery

An intra-Community acquisition refers to the taxable purchase of goods by a company from another EU member state. It is part of the so-called country of destination principle, where VAT is incurred in the buyer's country.

Basics:

An intra-Community acquisition is always offset by an intra-Community supply.
The delivery is tax-free in the country of origin, the tax liability arises in the country of destination.
Prerequisites: Delivery must arrive in the country of destination (Entry certificate) and the buyer must provide proof of a valid VAT ID number (purchaser requirement).

Tax treatment:

VAT liability in the buyer's country (country of destination).
ID card in the Advance turnover tax return (e.g. key figure 89 for acquisition tax, key figure 61 for input tax).
Input tax deduction possible under national tax law.

Accounting entry:

Basis of assessment (invoice amount from the supplier).
Recording of the tax amount separately in the postings.
No offsetting of tax and input tax in the accounting record - separate disclosure required.

Example:

A German company purchases a machine from a Belgian supplier. The delivery is tax-free. In Germany, the purchase is treated as taxable. The amount is reported in the advance VAT return and simultaneously claimed as input tax.

Implementation in SAP Business One:

Illustration of the purchasing posting cycle (an order, Goods Receipt, incoming invoice).
Goods receipt increases the stock level and addresses the goods receipt clearing account (We/Re account).
Incoming invoice clears the We/Re account and recognises the liability and input tax.
Account determination must be configured accordingly (income tax account, input tax account).
Incoming invoices can be entered in foreign currency.

Versino Financial Suite

the Versino Financial Suite extends SAP Business One with tax-compliant functions for mapping intra-Community acquisitions and deliveries. It ensures the correct separation of purchase tax and input tax, supports foreign currency postings and validates VAT identification numbers. It also offers analyses and export options for preparing advance VAT returns and declarations. The Versino Financial Suite thus facilitates the proper implementation of legal requirements in the intra-Community movement of goods.

Important notes:

Intra-Community acquisitions must be reported separately - no net offsetting.
Correct accounting is a prerequisite for tax compliance.
ERP-side support is provided via the systemic structure of documents, account determination and reporting.