A country specific update to support company tax registration IDs in sales documents and transfer sales to Intrastat with filter by tax registration ID

Summary

From 1 January 2021, a company is trading with the EU and sell goods in Northern Ireland, is needed to:

  1. put an ‘XI’ prefix in front of VAT number when communicating with an EU customer or supplier (your invoices will show XI in front of your VAT number - for example, XI 123456789 - instead of GB.

  2. transfer to Intrastat sales of goods to EU only from the Northern Ireland

This article describes how to enable, set up and use Microsoft Dynamics 365 Finance to choice company registration IDs (with XI or GB prefix) in sales document (sales orders, free text invoices, project invoice proposals) It includes information about how to complete the following tasks:

  • Feature activation

  • Configuring system to use this feature

  • Working with this feature

This article also describes how to transfer to Intrastat only sales to EU from the Northern Ireland and do not transfer sales to EU from the Great Britain.

IMPORTANT: This update must be installed prior to posting transactions in 2021. This is applicable to any company that operates from both the Great Britain (England, Scotland, and Wales) and Northern Ireland and has counterparties in the EU, as well as to any company that sells from the territory of Northern Ireland to the EU.

More information

Feature activation

You can open the Feature management workspace by selecting the appropriate tile on the dashboard or by going to System administration > Workspaces > Feature management. Among other features find Company tax registration in customer invoices and use button Enable to activate the feature. Read more about feature management and available options in Feature management overview article.

Note: Not applicable for Dynamics Ax 2012 R3.

Set up tax registration IDs

Details how to setup registration ID master data can be found in Registration IDs article . The below procedure illustrates only simplified process of setting up registration IDs for use in this feature

  1. Create  Registration types for tax registration numbers (Organization administration > Global address book > Registration types > Registration types).  Set Primary for country option to Yes for one of these  registration types (this registration type is use by default in sales orders, posting invoices, posting packing slips, project invoice proposal).

  2. Assign the created Registrations types to Registration categories (Organization administration > Global address book > Registration types > Registration categories). Set Registration category to VAT ID (registration types with such category are for selection in sales orders, posting invoices, posting packing slips, project invoice proposal).

  3. Create Tax registration numbers (Registration IDs) for the primary address of the legal entity (Organization administration > Organization > Legal entities,, click Registration IDs).

Note: Use path General ledger > Setup >Sales tax >External to set up Tax registration types and Legislative types in Dynamics Ax 2012 R3 .

Work with registration IDs in sales documents

When a user creates a sales order, the system automatically populate the default registration ID to Tax registration number field (Accounts receivable > Orders > All sales orders, in the selected sales order, click Header, then Setup FastTab, Tax registration number field). The user can update this field value from drop-down list.

The default value of Tax registration number field in the sales order is populated to Posting invoice and Posting packing slip forms.

When a user creates a Free text invoice, the system automatically populate the default registration ID to Tax registration number field (Accounts receivable > Invoices > All Free text invoices).

The similar  behavior when a user is creating Project invoice proposal. The system fills in the Tax registration number field with the default value in the Project invoice proposal and the user can update this field from drop-down list.

The value of Tax registration number is populated to Invoice journal/ Packing slip journal/ Project invoice journal when Posting sales order invoice or Free text invoice/ Packing slip/ Project invoice journal.

The set of Tax registration number  is used for printing the pro-forma invoice and invoice layout.

Note. If you use batch process for posting invoices, packing slip, free text invoices, and invoice proposals the system uses  default value of Tax registration number. 

Transfer sales from Northern Ireland to Intrastat

Go to Tax > Declarations > Foreign trade > Intrastat. Click Transfer

In the opened Intrastat (Transfer) dialog set Free text invoice, Customer invoice, Project invoice or Customer packing slips to Yes. Click Filter button.

In the opened Query enter tax registration number with 'XI' prefix that you have used for posting customer invoices in the lines for Registration number field. Click OK.

In result, only customer invoices to EU countries with 'XI' prefix will be transferred.

Finance (Globalization) guidance about Brexit impact (Whitepaper)

To download Whitepaper go to

Microsoft Dynamics CustomerSource:

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

Or

Microsoft Dynamics PartnerSource:

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



 

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