EU third-party purchase transactions

European Union (EU) third-party trade occurs when you receive a purchase invoice from a customer in one EU country/region, and the products are sent to a different EU country/region without entering the country of residence. The transaction amount can be identified and reported separately to comply with some EU countries'/regions' value-added tax (VAT) reporting and VAT Information Exchange System (VIES) requirements. Microsoft Dynamics 365 Business Central enables purchase transactions to be set up as EU third-party trade. Posted EU third-party transactions can be filtered in VAT statements and excluded from the amount in the Sales to Customer column of the VAT-VIES Declaration Tax Auth report.

Prerequisites

• For Sweden (SE) and Finland (FI) localized versions, activate the EU third-party trade feature in Feature Management.

  Even if the feature is preinstalled as an extension, it isn't activated by default. Follow these steps:

  1. Select Search (Alt+Q) in the upper-right corner, go to the Feature Management workspace, and then select the related link.
  2. In the list, find and select Feature update: Replace the existing EU 3-Party Purchase functionality with the new EU 3-Party Trade Purchase extension.
  3. In the Enabled for column, select All users.

• The EU third-party trade feature is unavailable in the German (DE) or Italy (IT) localized versions, because it's not compatible with the local VAT reporting and declaration features specific to these countries/regions.

Enable EU third-party trade functionality for a purchase

1. Select Search (Alt+Q) in the upper-right corner, enter VAT Setup, and then select the related link.
2. On the VAT Setup page, mark the Enable EU 3-Party Purchase field.

Use EU third-party trade functionality

1. Select Search (Alt+Q) in the upper-right corner, enter Purchase Invoices (or another purchase document), and then select the related link.
2. Select an existing purchase invoice, or select New to create a new one.
3. On the Invoice Details FastTab, select the EU 3-Party Trade checkbox.
4. Select OK.

Include or exclude EU third-party trade records on the VAT statement

1. Select Search (Alt+Q) in the upper-right corner, enter VAT Statements, and then select the related link.

2. On the VAT Statement page, select one of the following options to show EU third-party trade records by using the EU 3-Party Trade Filter field.

   Option	Description
   All	Show all records, regardless of whether the EU 3-Party Trade field in documents was marked.
   EU3	Show only records where the EU 3-Party Trade field in documents was marked.
   Non-EU3	Show only records where the EU 3-Party Trade field in documents wasn't marked.

Related information

Financial Management
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