This walkthrough shows how to create a triangulation sales transaction using the new triangulation simplification.
Before you begin
Ensure that you have the following before you proceed further:
You must have a VAT AvaTaxGlobal service subscription.
The VAT effective date must be 01st January 2021 or later to apply the new or enhanced VAT rules. If the VAT effective date is before 01st January 2021, then the old VAT rules will be applied for the transactions.
You must have the International Tax Reporting bundle installed in your NetSuite account. After installing the International Tax Reporting bundle, you will be able to access the EU Triangulation and other options at the line level.
- Log in to NetSuite.
- Create a sales order.
- In the CUSTOMER field, select a VAT customer.
The following new fields are displayed on the sales order.
MIDDLE MAN VAT ID (Required) Type the middle man VAT ID.
This field is required if the transaction is part of a triangulation scenario because AvaTax needs to know the VAT ID of the middleman.
When you provide the middle man VAT ID, you must include the complete VAT ID, starting with the two-digit country ISO prefix. For example, "ATU12345678"
TRANSPORT Indicates who in the VAT transaction is responsible for handling the transportation of the physical goods. This field is required and must be submitted on all physical goods transactions.
The default value of transport is Seller in case of a sales transaction.
Select from the list of options:
Note: In the case of EU Triangulation, the Transport field defaults to None irrespective of the value selected.
- Select a GOODS/SERVICE RENDERED ADDRESS from the customer record.
- Provide the MIDDLE MAN VAT ID on the transaction header.
- Add a line item and select the appropriate tax code.
- Select Mark EU Triangulation Column to mark this transaction for EU Triangulation.
- Select Save.