A country-specific update for Russia is available to create the indirect tax declaration for goods imported from Custom Union countries in Microsoft Dynamics AX 2009 SP1

Introduction

The goal of this feature is to create the indirect tax declaration for goods imported from Custom Union countries.

The declaration contains the information about excise and VAT which have to be accrued when goods are imported from Custom Union countries.

More information

1. Identify countries/vendors – Custom unit members Basic – Setup - Addresses - Country/region
   Country/region – BL
   
   Member of Custom Union - ON
   
   AP – Vendor details
   
   Create a new vendor, fill in the fields INN, RCOAD, Registry reason code and Tax agent group:
   
   Vendor type – Non-resident, and primary address with Country/region BL.
   
   The purchases from vendors - Custom Unit members only will be included in indirect tax declaration.

2. Units and items
   
   Basic - Setup - Units – Units
   
   Create new unit – л.б.с. (anhydrous alcohol). The excise rates for alcohol production are defined for anhydrous alcohol.
   
   IM - Item details
   
   Create a new item Вино Столовое
   
   Setup:
   
   Alcohol production fields
   
   Production type - Вина
   
   Strength % - 10 – anhydrous alcohol.
   
   Manufacturer – БелАго IM
   
   Item details – Setup - Unit conversion
   
   Create a new unit conversion for Вино Столовое.
   
   Item number - Вино Столовое
   
   From unit - л.б.с. (for anhydrous alcohol calculation)
   
   Factor - 1.0000000000
   
   Mathematical operator – x (can take values: add+ or multiply x), allows the double conversion.
   
   Alcohol concentration – 0.100
   
   To unit - л
   
   Round off – Round off
   
   The conversion will be calculated by the formula: (1 х 0,1) л.б.с. = 1л, what means that 1 liter of vine contains 100 ml of anhydrous alcohol. The conversion is needed because the excise rate is defined for anhydrous alcohol.

3. Taxes setup
   
   GL - Setup - Sales tax - RCOAD codes
   Create new RCOAD code
   
   GL - Setup - Sales tax - External - VAT operation codes
   Create a new VAT operation code
   
   GL - Setup - Sales tax - Sales tax codes (excise). Create new sales tax code AзАлк10 for excise calculation and setup in following way.
   
   Tab General:
   
   Type of tax – Excise
   
   VAT charge – From own funds
   
   Tab Calculation:
   
   Origin – Amount per unit
   
   Marginal base – Net amount per line
   
   Unit – л.б.с.
   
   The value also should be set up for tax codes
   
   GL - Setup - Sales tax - Sales tax codes (VAT)
   
   Create new sales tax codeНДС_531 for VAT calculation and setup in following way.
   
   Tab General:
   
   Type of tax – Standard VAT
   
   VAT charge – From own funds
   
   GL - Setup - Sales tax - Sales tax groups
   
   Tab Calculation:
   
   Create new sales tax group AзАлк10
   
   Add sales tax code АзАлк10 and НДС_531, check Exempt, because sales tax code has type "from own funds."
   
   If sales tax code had type from vend funds, Exempt would be unchecked.
   
   GL - Setup - Sales tax - Item sales tax groups
   
   Create new item sales tax group АзАлк10.
   
   Add sales tax code АзАлк10 and НДС_531:
   
   GL - Setup - Sales tax - Sales tax codes
   
   Create new sales tax code НДС_531 and setup in following way.
   
   Tab General:
   
   Type of tax – Standard VAT
   
   VAT charge – From own funds – this regime provides the business case when taxes are paid by the company, not by the vendor Union custom member.
   
   Method of calculation – Whole amount
   
   Tab Calculation:
   
   Origin – Percentage of gross amount
   
   Marginal base – Net amount per line
   
   GL - Setup - Sales tax - Sales tax groups
   
   Create a new Sales tax group AзАлк10
   
   Add sales tax code АзАлк10 and НДС_531, check Exempt, because sales tax code has type From own funds.
   
   If sales tax code had type From vend funds, Exempt would be unchecked.
   
   GL - Setup - Sales tax - Item sales tax groups
   
   Create new item sales tax group АзАлк10.
   
   Add sales tax code АзАлк10 and НДС_531:

4. Indirect Tax declaration format setup
   
   GL - Setup - Indirect taxes declaration - VAT Setup
   
   To create the Indirect taxes declaration user should provide the separate accounting for VAT and excise taxes. To identify the VAT tax codes included in every line of Indirect taxes declaration section 1 user has to map the line numbers with VAT tax codes.
   
   Add new lines entering the fields:
   
   Line number – 031
   
   Sales tax code – НДС_5315.

5. Separate divisions
   
   GL - Setup - Sales tax - Sales tax authoritiesTo provide the possibility to create the indirect tax declarations by separate divisions the information about relations between tax authorities, separate divisions and warehouses have to be set up.
   
   Create new tax Authority ИМНС related to the vendor – separate division.
   
   Set STI code – 7700
   
   Vendor account - VendRuExcise01GL - Setup - Indirect taxes declaration - Sales tax relationsCreate new line:
   
   Type of tax – Standard VAT
   
   Code - НДС_531
   
   Budget revenue code – 1020203
   
   Type of tax – Standard VATBasic – Setup – Separate divisionsCreate new Separate division.
   
   Set Vendor account.IM - Setup - Inventory breakdown – WarehousesTo support the indirect tax calculation for separate divisions set vendor account for the warehouse.
   
   Based on the setup the system calculates the taxes and creates transactions in standard for tax agents’ way for invoices from vendors of countries – Custom Unit members.

6. Indirect tax declaration journal
   
   GL – Journals - Indirect tax declaration journal
   
   Create new journal. Click the button Lines, than – the button Calculate. The system will select the invoices from vendors of Custom Union countries; identify the lines containing indirect taxes and calculate the figures for Indirect tax declaration sorting and grouping the data in proper way, required for declaration forming.
   
   Three registers are created as the calculation result:

   • Indirect VAT

   • Excise amount

   • Excise tax base

   After approving the journal, the declaration should be printed using the Print button.
   
   The dialog window allows to setup:
   Correction number, Location code, and the format of declaration meaning separate declaration for every authorities or one declaration for all divisions. The format should be identified in the field By place. If Tax authority was selected in the field By place, the Tax agent should be selected.