How to Report the VAT for Sales Transactions the Type of 'Installation' (Good + Service) (Partially Belgium Specific) (Doc ID 1352247.1)

Last updated on AUGUST 04, 2016

Applies to:

PeopleSoft Enterprise SCM Billing - Version 8.9 and later
PeopleSoft Enterprise SCM Order Management - Version 8.9 and later
Information in this document applies to any platform.

Goal

Article # 36 of the EU VAT Directive (Directive 2006/112/EC) states the following:

"Where goods dispatched or transported by the supplier, by the customer or by a third person are installed or assembled, with or without a trial run, by or on behalf of the supplier, the place of supply shall be deemed to be the place where the goods are installed or assembled. Where the installation or assembly is carried out in a Member State other than that of the supplier, the Member State within the territory of which the installation or assembly is carried out shall take the measures necessary to ensure that there is no double taxation in that Member State."

So supposing that you are registered for VAT in Belgium and in France and creating a Sales Order for an installation (including a Good and a Service) on a customer location in France this article says the following:

1) Place of Supply = France
2) VAT Return to be filled in France
3) Measures should be taken to ensure that there is no double taxation

Question # 1:
In Belgium, the transaction the type of 'installation' has to be reported on the Belgium VAT Return as well the French one but in a separate box (see the attached for screen shots from a Belgium VAT software tool showing that the transaction has to be reported on the French & Belgium VAT Declaration Reports). Is this supported by PeopleSoft?


Question # 2:
If you create a Sales Order for an installation with a line for the Good and a line for the Service, you would have the following:

* Line for the Good:

Ship From Country = Belgium
Ship To Country = France
Reporting Country = Belgium

* Line for the Service:

Ship From Country = France
Ship To Country = France
Reporting Country = France

How can you make sure that both lines have a Ship From Country being France and a Reporting Country being France?

Solution

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