VAT-UE Declaration

According to Article 100 of the Goods and Services Tax Act, taxpayers registered as EU VAT taxpayers are required to provide the tax authirities with summary information on the following activities:

1. intra-Community supplies of goods to value-added tax payers or legal entities that are not such taxpayers,

2. intra-Community acquisitions of goods from value-added tax payers,

3. supply of goods in triangular transactions (this obligation refers to the second taxpayers supplying goods to value-added taxpayers or legal entities that are not such taxpayers),

4. services provided in the territory of a Member State other than the national territory, other than services exempt from value added tax or taxed at a rate of 0%, for which the payer of value added tax is the service recipient,

5. movements of goods in the call-off stock procedure.

Polish Localization allows recording and preparing data for VAT EU declarations.

Setup

In order to properly generate VAT EU declaration and corrective declaration (VAT-UEK) files, it is required to define the appropriate settings.

Government Reporting Setup

To define the data of an individual or company that is required to generate VAT-UE declarations:

1. Choose the icon, enter Gov. Reporting Setup, and then select a related link.

2. On the Gov. Reporting Setup page, fill in the fields as described below:

   2.1. For the Company taxpayer type:

   • Company Name - Specify the name of a company that is the taxpayer.

   • VAT Registration No. – This field is filled in automatically based on data entered in the VAT Registration No. field on the Company Information page.

   • Tax Authority No. – Specify the unique 4-digit code of the taxpayer’s tax authority.

   2.2. For the Person taxpayer type:

   • Person First Name- Specify the name of the individual who is the taxpayer.

   • Person Last Name- Specify the name of the individual who is the taxpayer.

   • Person Birth Date- Specify the date of birth of the individual who is the taxpayer.

   • VAT Registration No. – This field is filled in automatically based on data entered in the VAT Registration No. field on the Company Information page.

   • Tax Authority No. – Specify the unique 4-digit code of the taxpayer’s tax authority.

Setting VAT Transaction Type

The preparation of VAT EU declarations requires the additional definition of an additional setting for intra-Community transactions. To define required settings:

1. Choose the icon, enter VAT Business Posting Groups, and then select a related link.

2. For intra-EU transactions, economic VAT accounting groups should be marked with an EU entry in the VAT Transaction Type column. If the column is blank, change the VAT transaction type according to the steps below:

   2.1. On the VAT Business Posting Groups page select Actions and VAT Transaction Type for the selected VAT business posting group.

   2.2. The dialog box appears and it shows a question: Do you want to change the VAT transaction type in the VAT Business Posting Group field?, select EU for New VAT Transaction Type, and Yes.

   2.3. As a result, the Domestic entry is created in the VAT Transaction Type column for the VAT business posting group that was set for domestic customers and vendors.

VAT Posting Setup

1. Choose the icon, enter VAT Posting Setup, and then select a related link.

2. On the VAT Posting Setup page, select the line with a combination of values in the Bus. VAT Posting Setup and Prod. VAT Posting Group fields which refers to a intra-community transaction and then choose Edit.

   2.1. If the combination of accounting group codes in a line refers to an intra-Community supply, select the EU Sales field on the Sales FastTab on the VAT Posting Setup Card page.

   2.2. If the combination of accounting group codes in a line refers to an intra-Community purchase of goods, select the UE Purchase field on the Purchase FastTab on the VAT Posting Setup Card page.

   2.3. If the combination of accounting group codes in the line refers to both intra-Community delivery of goods and intra-Community acquisition of goods, select both fields: EU Sales and EU Purchase.

   2.4. If the combination of accounting group codes in a line refers to an intra-Community delivery of services, select the UE Service field on the General FastTab on the VAT Posting Setup Card page.

   Perform these steps for each combination of VAT accounting group codes that applies to intra-Community transactions.

Setting the Role of the Intermediary in Three-way Transaction on Documents

Polish law obliges three business entities operating in a supply chain to properly post and report VAT calculated for third-party transactions including delivery of goods directly from the first to the third entity in the supply chain.

When goods or services are delivered in different countries of the European Union, the second business entity (intermediary) in this supply chain is required to report accordingly:

• intra-Community acquisition (purchase) from the first business entity, and
• an intra-Community transaction for the third business entity.

Transactions of the second business entity (intermediary) are reported in the VAT EU declaration.

The EU 3-Party Intermediate Role functionality has been described on the example of a sales invoice, but it also applies to the following documents:

• Purchase Quote,
• Purchase Order,
• Purchase Invoice,
• Purchase Return Order,
• Purchase Credit Memo,
• Sales Quote,
• Sales Order,
• Sales Invoice,
• Sales Return Order,
• Sales Credit Memo,
• Service Quote,
• Service Order,
• Service Invoice,
• Service Credit Memo.

To post a sales invoice marked as EU 3-Party Intermediate Role:

1. Fill in the sales invoice in the standard way.

2. On the Invoice Details FastTab, select the EU 3-Party Intermediate Role field. This field is appropriately correlated with the standard EU 3-Party Trade field.

After the document is posted, the EU 3-Party Intermediate Role field will be selected on the posted document header and in the entries in the VAT Entries table.

Important

In order to use the standard functionality of triangular transactions in intra-Community acquisitions, you need to start it on the Manage Functions page by selecting Function Update: Replace the existing EU 3-Party Purchase Trade functionality with the new EU 3-Party Trade Purchase extension.

With the Business Central 26 version (the April 2025 release), the change will be enabled automatically.

Creating the EU VAT Summary Reports

VAT EU Declaration

To generate a VAT EU declaration file for a selected period:

1. Choose the icon, enter VAT Periods, and then select a related link.

2. On the VAT Periods page, select the line with the period for which you want to create a VAT EU declaration.

3. On the VAT Periods page, before generating the file, first select the Close Period field, which will block the posting of operations that affect VAT records in the period.

4. On the VAT Periods page , choose the New VAT EU Declaration action on the action bar.

Note

From the VAT Periods page, you can also view previously created VAT EU declarations by choosing the VAT EU Declarations action on the action bar. The VAT EU Declarations page contains header information, as well as the lines corresponding to specific supplementary VAT EU information.

5. On the new VAT-UE declaration card, on the General FastTab, fill in the following fields:

   • Document Date - Specifies the date on which the VAT EU declaration was created. The default value is the working date. The date can be modified manually.

   The remaining fields are filled automatically.

   • Period No. - Specifies the consecutive number of the month of the year for which the VAT EU declaration is to be created.

   • Year - Specifies the year to which the VAT EU declaration to be created applies.

   • Declaration Type - Specifies the type of declaration. For the first VAT EU declaration in a given period, the First Submission type will be selected by default, whereas for subsequent declarations it will be Correction.

   • Name- Specifies the company name. The name is entered from the Gov. Reporting Setup page.

   • VAT Reg. No. Origin Country Code - Specifies the code of the country of origin of the VAT registration number entered from the Gov. Reporting Setup page.

   • VAT Registration No. - Specifies the VAT registration number that is entered from the Gov. Reporting Setup page.

   • Tax Office Number - Specifies the code of the tax office to which the declaration is sent. The number is entered from the Gov. Reporting Setup page.

   • Starting Date - Specifies the starting date of the period the VAT EU declaration covers. This date is entered from the VAT Periods page.

   • Ending Date - Specifies the ending date of the period the VAT EU declaration covered that is entered from the VAT Periods page.

   • Status - Specifies the editing status of the VAT- EU declaration which can be Open, Released, Exported. The status can be changed by choosing the Release or Reopen actions. The Exported state is set automatically after the export of data to the xml file.

6. To fill in the lines in the declaration header after verifying the completed fields, select Suggest Lines.. on the action bar.

   When the Suggest Lines batch job is run, the program fills in declaration lines using the rules described below:

   • The batch job processes VAT entries that include the VAT settlement date falling within the period specified in the Start Date and End Date fields on the General FastTab in the VAT-UE declaration.

   • Additional filtering of VAT entries depends on the settings for VAT posting groups, the combinations of which have been set as EU Purchases, EU Sales, EU Service.

   • The system inserts VAT EU declaration lines grouped by: VAT Registration No., Trade Type, EU 3-Party Intermediate Role.

   • When lines are inserted, the application fills in the following fields automatically:

     • Trade Type - Specifies the trade type. Depending on the type of the transaction, it can be: Supply of Goods, Acquisition of Goods, Supply of Services.

     • Line Type - Specifies the type of the line: for a declaration made for the first time, it is New, and for the correction of the declaration, it can be Before and After.

     • EU Country/Region Code - Specifies the country code based on the VAT entry. The code is based on the origin country code of the VAT registration number, the country/region code inserted from the VAT Registration No. prefix (if the former is not available).

     • VAT Registration No. - Specifies the VAT registration number based on the VAT entry.

     • Amount (PLN) - Specifies the sum of the values of the VAT Basis field in VAT entries with the purchase/sale transaction type in the line.

     • Trade Role Type- Specifies if the line applies to the direct transaction or if the taxpayer has the role of the EU third-party transaction intermediary.

7. It is possible to run a test printing process for a VAT EU declaration before it is approved. To print the report, select View Test Report and then Preview or Print. The report presents the Amount (PLN) fields that contain the calculated value in PLN, which is the sum of the amounts from the lines of the VAT EU declarations for each type of transaction.

Note

The test report is used to validate the entered data and displays error messages that prevent the approval of the VAT-UE declaration

8. If the error is related to a field in the VAT EU declaration header, delete the declaration, correct or complete the data in the settings, and create the declaration anew so that no error messages appear on the test report. If the error is related to the lines of the declaration, delete the declaration, correct the documents that caused the erroneous entries. Create the declaration anew and insert the lines.

9. Approve the VAT EU declaration by changing its status to Released. To change the status, select the Release action on the action bar and then select Release.

10. You can export the approved VAT EU declaration (with the Released status) to an xml file by selecting the Export action on the action bar. Send the file that was created electronically to the Ministry of Finance. The VAT UE declaration that has the Exported status cannot be released or edited again.

Correction of the VAT UE Declaration

To correct the error that appeared in one of the previously VAT EU declarations, create a corrective declaration. Polish legal regulations require that a corrective declaration should show before- and after-correction line values. If the original VAT EU declaration included a line that should not be included in a corrective declaration, the line should show a zero value before the correction. If the original VAT EU declaration included a line that should not be included in a corrective declaration, the line should show a zero value before the correction. Generally, each line before the correction should contain the same value as the original declaration line, and each line after the correction should have a new value that was, properly calculated for a specified period of time.

To post transactions that affect have an impact on data in the VAT-UE declaration which was already submitted for the period and to create a file which is a corrective VAT-UE declaration:

1. Choose the icon, enter VAT Periods, and then select a related link.

2. Select an appropriate period, and then choose the Reopen Period action. This enables posting the transactions made in the selected period.

3. After all transactions are posted, close the VAT period again.

4. To create corrective VAT EU declaration file for a selected period, create a new VAT-UE declaration header in the same way as the for the original declaration.

5. In the corrective declaration header, the Declaration Type field is automatically filled with the Correction value. Other fields are also automatically filled in by the system.

6. To fill in the lines in the header section of the declaration after verifying the completed fields, select Suggest Lines.. on the action bar.

7. When the Suggest Lines batch job is used the system automatically fills in the declaration correction lines – two lines for each corrected line. The line of the Before >type (before correction) is created based on an original declaration line, and the line of the After type (after correction) is created based on a new calculated values.

8. It is possible to run a test printing process for a VAT EU declaration before it is approved. To print the report, select View Test Report and then Preview or Print. The report presents the Amount (PLN) that contain the calculated value in PLN, which is the sum of the amounts from the lines of the VAT EU declarations for each type of transaction.

Note

The test report is used to validate the entered data and displays error messages that prevent the approval of the VAT-UE declaration

9. If the error is related to a field in the VAT EU declaration header, delete the declaration, correct or complete the setup data, and create anew the declaration so that no warnings appear on the test report. If the error is related to the lines of the corrective declaration, delete the declaration, correct the documents that caused the erroneous entries. Create the declaration anew and insert the lines.

10. Approve the VAT EU declaration by changing its status to Released. To change the status, select the Release action on the action bar and then select Release.

11. You can export the approved VAT EU declaration (with the Released status) to an xml file by selecting the Export action on the action bar. Send the file that was created electronically to the Ministry of Finance. The VAT UE declaration that has the Exported status cannot be released or edited again.

See Also

Third-party Transactions