Study Guide

Objective

Student:
-understands VAT on Intra-Community trade and exports / imports
-can do the government reports required regarding value added taxation in international trade

Content

-inta-community supply on goods and services
-VAT on export/import
-reverse charge
-invoice requirement
-VAT refunds

Location and time

Autumn 2024

Materials

Tomperi, S. Kehittyvä kirjanpitotaito (last version)
Teaching material from Tax Administration
VAT legislation
Other material assigned by the teacher

Lecture material on:
- Intra-community supply of goods and services
- VAT on export/import
- Reverse charge
- Invoice requirements in international trade
- VAT refunds from abroad

Teaching methods

Lectures
Exercises
Exam

Employer connections

Guest lectures

Exam schedules

Fre 17.1.2025 kl. 12-13.30
Fre 7.2.2025 kl. 12-13.30

Student workload

24 hours of campus based teaching
20 hours different exercises
10 hours preparation for exam

Tot. 54h ( 2 times 27h)

Evaluation scale

H-5

Assessment criteria, satisfactory (1)

Students are familiar with special issues regarding VAT system for international business transactions outside the country's borders.
Students understand the requirements for an invoice in international trade.
Students are familiar with the VAT reports that should be submitted when working with international trade.

Assessment criteria, good (3)

Students can handle issues regarding VAT in international business transactions, i.e. EU sales and purchases , export and import from an accounting perspective.
Students can create invoices with all the legal requirements for an invoice made in international trade.
Students are able to prepare and submit the VAT reports that the authorities need when conducting international trade.

Assessment criteria, excellent (5)

Students can independently handle issues regarding VAT in international business transactions, i.e. EU sales and purchases , export and import from an accounting perspective.
Students can independently create invoices with all the legal requirements for an invoice made in international trade.
Students are able to independently prepare and submit the VAT reports that the authorities need when conducting international trade.

Assessment methods and criteria

Intra-community supply of goods and services
- VAT on export/import
- Reverse charge
- Invoice requirements in international trade
- VAT refunds from abroad

Assessment criteria, fail (0)

(0) = fails to fulfill the requirements for 1

Assessment criteria, satisfactory (1-2)

Satisfactory (1-2)

Intra-Community Supply of Goods and Services:
• Basic understanding of the concept.
• Can identify what constitutes an intra-community supply.
• Limited knowledge of documentation requirements.
VAT on Export/Import:
• Basic understanding of VAT on exports and imports.
• Can identify when VAT is applicable.
• Limited knowledge of customs procedures.
Reverse Charge:
• Basic understanding of the reverse charge mechanism.
• Can identify when reverse charge applies.
• Limited knowledge of accounting for reverse charge.
Invoice Requirements in International Trade:
• Basic understanding of invoice requirements.
• Can identify essential invoice elements.
• Limited knowledge of international invoicing standards.
VAT Refunds from Abroad:
• Basic understanding of VAT refund processes.
• Can identify when a VAT refund is applicable.
• Limited knowledge of the documentation required.

Assessment criteria, good (3-4)

Good (3-4)

Intra-Community Supply of Goods and Services:
• Clear understanding of intra-community supply rules.
• Can explain the VAT treatment and necessary documentation.
• Knows the conditions for zero-rating intra-community supplies.
VAT on Export/Import:
• Clear understanding of VAT treatment on exports and imports.
• Can explain the difference between zero-rated exports and VAT on imports.
• Familiar with basic customs documentation.
Reverse Charge:
• Clear understanding of reverse charge rules.
• Can explain how to account for reverse charge in VAT returns.
• Knows the sectors and transactions where reverse charge is commonly applied.
Invoice Requirements in International Trade:
• Clear understanding of international invoice requirements.
• Can explain the necessary elements for compliance.
• Familiar with electronic invoicing and its benefits.
VAT Refunds from Abroad:
• Clear understanding of the VAT refund process.
• Can explain the steps to apply for a VAT refund.
• Familiar with the documentation and deadlines involved.

Assessment criteria, excellent (5)

Excellent (5)

Intra-Community Supply of Goods and Services:
• Comprehensive knowledge of intra-community supply regulations.
• Can apply rules to complex scenarios.
• Fully understands the implications for VAT reporting and compliance.
VAT on Export/Import:
• In-depth knowledge of VAT regulations for exports and imports.
• Can navigate complex customs procedures and documentation.
• Fully understands the impact on VAT returns and compliance.
Reverse Charge:
• Comprehensive knowledge of reverse charge regulations.
• Can apply reverse charge rules to complex transactions.
• Fully understands the implications for VAT compliance and reporting.
Invoice Requirements in International Trade:
• In-depth knowledge of international invoicing regulations.
• Can create compliant invoices for various international transactions.
• Fully understands the implications for VAT reporting and audits.
VAT Refunds from Abroad:
• Comprehensive knowledge of VAT refund regulations.
• Can navigate complex refund applications and procedures.
• Fully understands the implications for cash flow and compliance

Qualifications

Basics of Accounting