You can export customer and vendor information that is needed by an auditor to a file in the format that is required by Italian law. Tax authorities use this information to analyze the tax position of each customer and vendor. The customer and vendor list must be submitted by no later than April of each year, and is used by the tax authority to calculate the "own resources" that each Member State must pay to the community budget.

Note
For more information, consult your tax accountant.

Set up company information for the Italian customer and vendor communication report

Click Basic> Setup> Company information .
On the Contact informationtab, enter information in the Routing numberand Tax exempt numberfields. This information is included in the Customer and vendor list communicationreport.

Set up a vendor account for a tax assistance center

To make payments to a tax assistance center (CAF), which in turn will submit the payment to the government on your behalf, you must set up a vendor account for the tax assistance center. If you choose to use a vendor account, you must set up the vendor account before you set up the sales tax authority record.

Click Accounts payable> Common Forms> Vendor Details .
Create a new vendor account and enter general information.
On the Setuptab, enter the fiscal code for the tax assistance center in the Fiscal codefield.

Set up sales tax codes and sales tax groups

Create the sales tax codes and sales tax groups that are required. For more information, consult your authorized Microsoft Dynamics AX partner.

Click General ledger> Setup> Sales tax> Sales tax codes .
Create sales tax codes. For more information, see Set up and use sales tax codes.
Click General ledger> Setup> Sales tax> Sales tax groups .
Create sales tax groups. For more information, see Set up and use a sales tax group.
Click General ledger> Setup> Sales tax> Item sales tax groups .
Create item sales tax groups. For more information, see Create an item sales tax group.

Set up Italian sales tax books and sections

Set up sales tax books and sections. Each section must have a sales tax book and a number sequence code assigned. The number sequence codes correspond to the transactions that a VAT transaction can be based on.

Click General ledger> Setup> Sales tax> External> Italian sales tax books .
Set up sales tax books.
Click General ledger> Setup> Sales tax> External> Italian sales tax book sections .
Set up sales tax book sections.

Set up customer and vendor list report

If necessary, you can exclude transactions with specific sales tax code and sales tax group combinations from the Customer and vendor list communicationreport. You also can specify that transactions that use those sales tax code and sales tax group combinations be treated as either Exemptor No Taxon the report. For more information, see Customer vendor list report setup (form).

Click General ledger> Setup> Sales tax> External> Customer and vendor list setup.
Select a sales tax code and sales tax group combination. (You can leave the sales tax group blank, if necessary.)
In the Exempt or no taxfield, you can select how the tax should be calculated for the report.
Select the Excludecheck box to exclude transactions for the sales tax group from the Customer and vendor list communicationreport.

Set up VAT information for customers and vendors

Click Accounts receivable> Common Forms> Customer Details .
Select a customer account.
On the Setuptab, set up the sales tax group, tax exempt number, and fiscal code.
Repeat steps 2 and 3 for the remaining customers.
Click Accounts payable> Common Forms> Vendor Details .
On the Setuptab, set up the sales tax group, tax exempt number, and fiscal code.
Repeat steps 5 and 6 for the remaining vendors.