EU sales list reporting
This article provides information about European Union (EU) Sales list reporting.
EU Sales list reporting
A supplier that is performing intra-community supplies of goods or services to businesses that are established within the European Union (EU) must submit a Declaration of Intra-Community Supplies (EU Sales list, or ESL). In general, the ESL must be submitted to tax authorities no later than the last day of the month after the calendar period that the ESL covers. The supplier must state its value-added tax (VAT) identification number on the ESL and must also state, by customer, the following information:
- VAT identification number of the EU customer
- Total value of the intra-community supplies of goods and services that are made to the EU customer in that period. The supplier must also separate general supplies of goods from triangular trade supplies. A triangular trade transaction involves direct delivery of goods from the supplier's supplier to its customer when both parties are registered in other member states of the EU.
By using the ESL, tax authorities of each EU member state can verify whether VAT has been paid for each intra-community transaction. The combination of listings and VAT returns let EU member states exchange information about the flow of goods throughout the EU.
Overview of the EU Sales list reporting process
You can complete the following tasks for EU Sales list reporting:
- Collect information about intra-community trade transactions. An intra-community trade transaction can be a sales invoice, free text invoice, project invoice, or vendor invoice. A transaction is identified based on the country/region of the counterparty. Intra-community trade transactions of different types are collected into the EU Sales list table, where they are represented in the common form. Each record of the ESL table represents single transaction and consists of the VAT identifier of a counterparty and the total value of goods and services that were supplied.
- (Optional) Preview the EU Sales list report. You can preview and validate the EU Sales list report for a given period in the form of a Microsoft Excel workbook.
- Generate the EU Sales list report. The EU Sales list report is generated in the form of an electronic file of a particular format that is specific to each member state of the EU. In general, an EU Sales list report contains basic information about the reporting party and the values of supplies of goods and services. The information is grouped by the country and VAT identifier of a counterparty.
- Close the EU Sales list reporting period. After the EU Sales list report is generated and submitted to authorities, you can mark the records of the ESL table as Closed. These transactions won't be included in additional reports.
The following table shows the prerequisites that must be in place before you start.
|Setup: Legal entity||The primary address of the legal entity must be in a EU member state. On the Legal entities page (click Organization administration > Organizations > Legal entities), select your legal entity. On the Addresses FastTab, create an address, select a country/region and other address components, and mark the address as Primary. On the Tax registration FastTab, in the Tax registration number field, specify the tax registration number for your company.|
|Setup: Tax exempt identification parameters||Set up tax exempt identification parameters on the Country/region parameters page (click Tax > Setup > Sales tax > Country/region parameters). For each country/region where you have counterparties, create a record on the page, and specify the following information:
|Setup: Tax exempt numbers||Create tax exempt numbers for your counterparties on the Tax exempt numbers page (click Tax > Setup > Sales tax > Tax exempt numbers). For each tax exempt number, create a record on the page, and specify the following information:
|Setup: Tax registration of counterparties||Set up tax registration information for your counterparties on either the All customers page (click Sales and marketing > Customers > All customers, select a customer record, and then click Options > Change view > Details view) or the Vendors page (click Procurement and sourcing > Vendors > Vendors, select a vendor record, and then click Options > Change view > Details view). On the Invoice and delivery FastTab, in the Tax exempt number field, select the tax registration number.|
|Setup: Sales tax||Set up the tax codes to include on the EU Sales list report on the Sales tax codes page (click Tax > Indirect taxes > Sales tax > Sales tax codes). On the Report setup FastTab, for each sales tax code that should be included on the report, clear the Excluded check box. Set up sales tax parameters for items on the Item sales tax groups page (click Tax > Indirect taxes > Sales tax > Item sales tax groups). For each item sales tax group, select a value in the Reporting type field. The value that you select determines the ESL amount column that the line amount will be included in.
|Setup: ESL reporting configurations||Import or create electronic reporting configurations for the ESL. For information about how to create and maintain electronic reporting configurations, see the Electronic reporting documentation.|
|Setup: General parameters||Set up ESL reporting parameters on the Foreign trade parameters page (click Tax > Setup > Foreign trade > Foreign trade parameters). Specify the following parameters:
Working with the ESL
Collecting information about intra-community trade transactions
Transactions of the following types can be considered intra-community trade transactions:
- Sales invoices
- Free text invoices
- Project invoices
- Vendor invoices
A transaction is considered an intra-community trade transaction if the delivery address of the transaction is in a member state of the EU. For such countries/regions, a record should exist on the Country/region parameters tab of the Foreign trade parameters page, and the Country/region type value should be set to EU. Intra-community trade transactions are marked in the List code field. Using this field, you can also separate general intra-community trade transactions from triangular trade transactions. You can collect information about intra-community trade transactions on the EU Sales list page (click Tax > Declarations > Foreign trade > EU Sales list) by using the Transfer function. This function lets you include transactions that have amounts of different reporting types (i.e., items or services), according to the item sales tax groups that are specified on transaction lines. You can also apply other filters to define the transactions that should be included. The Transfer function creates a record on the EU Sales list page for each intra-community trade transaction that is included, and specifies a counterparty account number, a country/region, a tax exempt number, an invoice number and date, and the total amounts of lines per reporting type. It also copies the List code value from the transaction. You can manually change the list code for a transaction on the EU Sales list page. The Transfer function creates records where the Reporting status value is set to Included. You can validate the information that is collected on the EU Sales list page by using the Validate function.
Generating the EU Sales list report
You can generate an EU Sales list report by using the Reporting function on the EU Sales list page. The function lets you select a reporting period and apply filters to define the ESL records to include. Additionally, you can specify other parameters that are specific to each country/region. You can also choose to generate a preview report, an electronic file, or both. The Reporting function uses the report and file format settings that are specified on the Foreign trade parameters page. In general, an EU Sales list report consists of separate lines that list the total amounts of supplies per counterparty country/region, tax exempt number, and reporting type (triangular trade transactions are included). After you generate an EU Sales list report for a specific period, you can mark the ESL records that are included on the report by setting the Reporting status value to Reported. To set this status, use the Mark as reported function on the EU Sales list page.
Closing the EU Sales list reporting period
When you've completed the reporting process for a specific period (for example, when tax authorities have accepted the EU Sales list report), you can mark the ESL records that are included on the report for the period by setting the Reporting status value to Closed. To set this status, use the Mark as closed function on the EU Sales list page. If you revert the closing of the period, you can mark ESL records by setting the Reporting status value to Included. These records can then be included on an EU Sales list report again. To set this status, use the Mark as included function on the EU Sales list page.