This document includes guidance for Companies in Countries that are joining the EU and are current users of Access software, and also for Companies who currently trade with these Accession Countries.

The first section of this document outlines guidance for Companies in the Countries that are joining the EU on 1st May and are current users of Access software. It should be noted that Access software is designed to serve the UK VAT regime and may not meet all the requirements of other local EU territories. It is the sole responsibility of the software user to ensure that they meet all their legal obligations with regards to VAT compliance.

Companies need to plan to clear any batched transactions from their system prior to switching to EU status on 1st May. For larger Companies this will entail some careful planning and they should aim to complete as many financial transactions as possible on 30th April before changing status. This will involve ensuring that all delivered goods are invoiced on 30th April and that new deliveries are not generated on 30th April. There are rules for transactions that fall across the ‘change over’ period and Companies will benefit from having a clean demarcation line for transactions. Incomplete orders may well have to be deleted from the batch and re-entered on 1st May to capture the new VAT rules.

Copy the service pack into the Service folder and ensure that a user with Service Pack access logs into the data file and activates the upgrade. This process can be undergone at any time and is not date sensitive.

The following steps should only be taken on, or after 1st May 2004.

It is assumed that you will want to run new EU VAT returns commencing with your trade on 1st May 2004. To ensure that transactions posted prior to 1st May are not included in the new returns, you should print and update your VAT return for the period up to 30th April. Please note that if you have never printed and updated your VAT return, this process may take some time to compile the information.

This process should only be undertaken on, or after 1st May and can only be undertaken if all batched transactions have been cleared. This is to ensure that all financial transactions processed after 1st May are correctly coded for VAT purposes.

A backup of your data should be taken prior to changing the VAT status.

When the batches have been cleared, go to Home Defaults.

Click on Edit and then on the Non-EU State menu. This enables you to change the home default to EU State.

See Change Home Country to EU State for a full description of this process.

Having changed the Country status you should then review the VAT rates that are set up within the system to ensure that they conform to the EU rates to be applied. These are found in VAT Rates.

All Customer, Prospect and Supplier records having the Home Country Tax status will be updated automatically.

This section applies to Companies from all Countries including those joining the EU on the 1st May 2004.

If you trade with other Countries that are joining the EU you will need to amend their Country records to reflect the change.

Copy the service pack into the Service folder and ensure that a user with Service Pack access logs into the data file and activates the upgrade. This process can be undergone at any time and is not date sensitive.

The following steps should only be taken on, or after 1st May 2004.

A backup of your data should be taken prior to changing the VAT status.

Multi-Currency

If using a Multi-Currency version of Dimensions, before you amend any Country records you should check that all the Customer and Supplier records, that will be affected by the change, are currently set to Non-EU State for the Country being amended.

Single Currency

If using a Single Currency version of Dimensions you will need to create a Country record for any Non-EU States that you trade with before you can convert them to EU State status.

In Country Records, find the Country that needs updating. Click on Edit and then on the Non-EU State menu to select EU State. A drop down list of the existing EU State Countries will be added to the window. You will be prompted to add this Country to the existing system list.

You are able to change the VAT status of other Countries with which you trade whilst there are transactions in the batch. However, to ensure that you are using the correct VAT rates and rules you are advised to delete and re-enter batched transactions for these Countries.

Customers and Suppliers that are associated with the Home Country will not need to be changed. These Customers and Suppliers will have an EU Status of XX VAT, where XX is the Home Country Code.

You will need to change the EU Status of Customers and Suppliers from outside your Home Country; but who are associated with a Country that is joining the EU. These Customers and Suppliers will currently be flagged as Non EU State and will need to be changed to EU State.

You should amend the VAT status for the Country record first (see above). It is this change that enables you to change the VAT status of the Customers and Suppliers.

There are 2 ways to change their records.

Find the Customer/Supplier record to be changed. Click on Edit and then on the Non-EU State menu. Select EU State, a warning message will be displayed relating to batched transactions.

When the warning message has been accepted, the VAT window will be displayed. Ensure the correct Country code is selected on the VAT window, enter the VAT Registration number for the Customer and review their default analysis and Intrastat codes.

IMPORTANT: If the Customer is registered for VAT it is important to make an entry into the VAT Registration field as this will drive the VAT rates that are offered by the software.

Close the VAT window and click OK to save the record.

This utility will allow you to globally change all Customers and Suppliers for a specified Country that is joining the EU. This utility can be found within Customer/Supplier Change to EU State Utility.

The utility enables you to change Customers or Suppliers and to select specific Account Code ranges and Sort Key ranges. You must select a Country to process.

We would recommend that you create an audit file of this important change.

Having completed these processes you should be ready to process transactions utilising the new EU VAT rules. Access would recommend that the data file should be copied so that you can process test transactions prior to live processing. You should monitor the initial transactions being processed under the new configuration to ensure that the correct VAT codes are automatically being applied.

Having posted some sample transactions, you would be advised to print (but not update) the VAT Return and Audit trails to ensure that the correct values are being updated and reported.