To ensure that you are able to register and report the VAT data according to the regulations for 2010, you must perform the entry process based on the classification of the items.
When an item is classified as goods, a VAT code for goods has to be used. When an item is classified as services, the VAT code for services has to be used. When creating entries, the VAT code defined in the VAT field in the debtor maintenance is suggested by default. You are required to ensure that correct VAT codes for goods and services are entered based on the classification of the items.
As there are changes in the VAT codes, EU sales list, and VAT return, here are the steps to ensure that you can register and declare your VAT according to the rules for 2010.
You are required to define separate VAT codes for goods and services so that the goods and services on the EU sales list are split when your company has customers in foreign countries. In this case, there are three possible scenarios:
For each scenario, a different situation applies:
When you only deliver goods, you do not have to change anything. When you link your VAT codes at the debtor maintenance, you can keep those links. At the item maintenance, you have the possibility to define the items as goods. But this is not a mandatory step in this situation.
When you only deliver services, you have to adjust the following:
When you deliver both services and goods, you have to adjust the following: