[EU] Brexit - Northern Ireland Protocol impact to Intra-community trade reporting in EU countries.

Overview

This feature is available for Europe. It allows you to specify State in Country/region properties in Foreign trade parameters. You can now determine whether Country/region and State pair is EU, EFTA or Third country.

You can use this to specify that GBR country/region and NI state is EU and GBR with other states are Third countries.

This feature also enables extended algorithm for printing Partner country/region ISO code in EU Sales list: two-letter prefix of Partner tax exempt number will be printed in EU sales list report instead of ISO code of the Partner country/region shown in EU sales list line.

To get the feature, you should activate it in the Feature management workspace and download the following or higher version of ER configuration EU sales list model.version.3

Fix downloading instructions:

https://learn.microsoft.com/en-us/dynamics365/fin-ops-core/dev-itpro/analytics/er-download-configurations-global-repo?toc=/dynamics365/finance/toc.json

As a prerequisite for using this feature, you should make yourself aware of recommendations for system setup and master data updates that are described in the whitepaper in the section You’re in an EU member state, or Switzerland, Norway, Iceland, or Liechtenstein, and your counterparties are in the United Kingdom:

CustomerSource: https://mbs.microsoft.com/customersource/Global/news-events/news-events/news/GuidanceBrexitImpact

PartnerSource: https://businesscenter.mbs.microsoft.com/#contentdetail/GuidanceBrexitImpact

Activate the feature

Applicable for Dynamics 365 for Finance and operations

In the Feature management workspace, activate the feature Determine Country/region properties based on Country/region and State pair

Applicable for Dynamics AX 2012 R3

Go to Organization administration > Setup > Foreign trade parameters. On the Country/region properties tab activate the parameter State in a country/region.

Set up Country/region properties

Go to Tax > Setup > Foreign trade > Foreign trade parameters.

On the Country/region properties tab set up GBR as Third country/region in the Country/region column.

Click State/province. In the State/province page, define that GBR country/region and NI state/province pair is EU country/region type. Define Intrastat code as XI.

Impact on reporting

After you activate the feature and do all required settings, you will see the following impact on reporting:

Intrastat

Applicable for European countries.

1. Sales to customers with delivery to GBR address are not transferred to Intrastat. Sales to customers with delivery to GBR address with NI state are transferred to Intrastat.

2. Purchases from vendors with GBR address are not transferred to Intrastat. Purchases from vendors with GBR address and NI state are transferred to Intrastat.
   
   Find more details about Intrastat in Transfer transactions to the Intrastat - Finance | Dynamics 365 | Microsoft Learn

3. Purchases from vendors with Lading address in GBR are not transferred to Intrastat. Purchases from vendors with Lading address in GBR and NI state are transferred to Intrastat.
   
   Find more details about specifying lading address in EUR-00002 Specifying a lading address for an intra-community transaction - Finance | Dynamics 365 | Microsoft Learn

4. When you generate Intrastat report for sales or purchase where your partner is in GBR and NI state, Partner country/region field should have XI value in the Intrastat Excel report and in electronic Intrastat file.
   
   Find more details about how to generate Intrastat declaration in EUR-00002 Generate an EU Intrastat declaration - Finance | Dynamics 365 | Microsoft Learn
   
    
   Applicable for Hungary.
   
   Validation of Intrastat fulfillment date will be executed for documents with GBR and NI state pair and will not be executed for GBR country.

EU sales list

Applicable for European countries.

1. List code is pre-defaulted as EU trade if partner address is in GBR and NI state and won’t be pre-defaulted as EU trade if partner address is in GBR.

2. Validation function in EU sales list considers that GBR and NI state is in EU and warning message is not thrown.
   
   Find more details about EU sales list reporting in EU Sales list reporting - Finance | Dynamics 365 | Microsoft Learn

3. When you generate EU sales list report for sales to GBR with NI state, Partner country/region field should have XI value in EU sales list Excel report and in electronic EU sales list file.
   
   Specifically, if you for example sell to a customer GBR and NI state with delivery address in DEU and you specify customer tax exempt number as XI######### on the document, you will get Country/region as DEU and Tax exempt number as XI######### in EU sales list page. When you further report this line in EU sales list, you will get XI in Partner country/region field as it will be taken from two-letter prefix of tax exempt number.
   
   Find more details about how to generate EU sales list report in EUR-00011 Generate the EU sales list report - Finance | Dynamics 365 | Microsoft Learn

Validation of mandatory Tax exempt number

Applicable for European countries

Validation of Tax exempt number based on the setting in Accounts receivable parameters when you create customer master record is updated.

When you set up value in Tax exempt number requirement field in Accounts receivable parameters page as EU member states or Domestic + EU member states and create customer master record with address in GBR and NI state, the system requires you to specify Tax exempt number. If you create customer master record with address in GBR, system doesn’t require you to specify Tax exempt number.

Applicable for Spain

When you print Report 340 or Report 347, and address of the customer is in GBR and NI state, system checks that Tax exempt number is filled for the line.

More information and known limitations

The following pieces of the local functionality are planned through separate deliverables.

In all features listed below as of feature release date system determines type of GBR country/region following the setting you’ve made on Country/region properties Tab of Foreign trade parameters page.

1. Invoice issue deadline. Feature has rules for setting up Invoice issue Due Date based on Country/region type. Uptake of this feature is planned in scope of 10.0.18 monthly update and in scope of Issue 552120 

2. Spanish SII. Feature has certain rules for filling invoice attributes based on type of the country/region of customer address. Uptake of this feature is planned in scope 10.0.18 monthly update and in scope of Issue 549960

3. Italian Esterometro. Uptake of this feature is planned for delivery in scope of regulatory features 3983437, 3983453

4. French Intrastat. Feature has certain logic for transferring sales with Direct delivery to the end customer from Intercompany purchase order in EU country. Uptake of this feature is planned in scope of 10.0.18 monthly update.

5. Italian Intrastat. Feature has certain logic for transferring purchase orders if warehouse address is domestic or in EU country. Also Vendor invoice journal has a field Country/region and such vendor invoices are transferred in Country/region is domestic or in EU country. Uptake of this feature is planned in scope of 10.0.18 monthly update.

6. Latvian VAT declaration. Feature has certain rules for filling data in appendixes based on type of the country/region of customer and vendor.

7. Hungarian Intrastat. Feature has certain logic for transferring to Intrastat purchases from vendors with warehouse in Third country/region but when purchase is done from the Port with address in EU country/region.

8. Hungarian reimbursement tax report. Feature has certain logic for validation whether Issuer country on customer master record is in EU country/region