Transaction Nature

Use the Transaction Nature command to maintain the codes used to complete the relevant part of the Supplementary Declaration (SD) you submit for Intrastat purposes. The Nature of Transaction code (NoTC) is used to indicate the type of transaction which is being declared on the SD, for example normal sales or acquisitions, goods sent for processing or repair, or free of charge goods. The code normally has one digit and a zero. However a second digit can be used on certain occasions and although use of this second digit is not mandatory, it can very often help businesses in reconciling their Intrastat and VAT accounts, avoiding discrepancies which might result in enquiries from HMRC.

You can assign the nature of transaction to each EC customer and supplier using the Nature of Transaction box on the Sales - Processing - EC VAT form and the Purchase - Processing - EC VAT form.

Box	Description
Nature of Transaction	A two-digit number that identifies the nature of transaction. The permitted NoTC codes are described in the table above.
Description	The description for the NoTC code.

Nature of Transaction codes

NoTC	Transaction
10	All transactions involving actual or intended change of ownership for a consideration (except those appropriate to NoTC 2,7, or 8 (1st digit). This includes stock moved within the same legal entity (between Member States), and financial leasing.
16	Credit note values, where the goods are not returned, that is, an amount used to reduce the overall value of the SD. The second digit '6' acts as a negative value.
17	For transactions which must be declared on SDs but are not included in boxes 8 or 9 of the VAT Return, for example; goods arriving in an excise or fiscal warehouse (where the date of arrival, rather than the tax point is being used).
18	For transactions which are declared in boxes 8 or 9 of the VAT Return, but are only required on the SD for reconciliation purposes. For example; goods leaving an excise or fiscal warehouse (to home use in the UK) where the tax point was not used to declare the arrival, stage payments made when no movement of goods occurs, or final stage payments.
20	Returned goods and replacement goods. Transactions that use this NoTC should not be included in boxes 8 or 9 of the VAT Return.
30	Free of charge (FOC) transactions involving permanent change of ownership. A positive value must be shown on the SD for FOC goods. The value of free of charge goods will normally be the amount which would have been invoiced in the event of a sale or purchase of the goods.
37	Free of charge (FOC) transactions involving permanent change of ownership where the transaction must be declared on the SD but is not included in boxes 8 or 9 of the VAT Return.
38	Free of charge (FOC) transactions involving permanent change of ownership where the transaction must be declared in boxes 8 or 9 of the VAT Return, but is only required on the SD for reconciliation purposes.
40	Goods sent for processing or repair. Transactions that use this NoTC should not be included in boxes 8 or 9 of the VAT Return.
50	Goods returned following process or repair. Transactions that use this NoTC should not be included in boxes 8 or 9 of the VAT Return.
70	Joint defence projects or other joint inter-governmental production programmes (for example, Airbus).
77	Joint defence projects or other joint inter-governmental production programmes where the transaction must be declared on the SD but is not included in boxes 8 or 9 of the VAT Return.
78	Joint defence projects or other joint inter-governmental production programmes where the transaction must be declared in boxes 8 or 9 of the VAT Return, but is only required on the SD for reconciliation purposes.
80	Supply of building materials and equipment as part of a general construction or engineering contract. The value of the goods actually moving goes in box 2 of the SD, not the total value of the contract.
87	Supply of building materials and equipment as part of a general construction or engineering contract where the transaction must be declared on the SD but is not included in boxes 8 or 9 of the VAT Return. The value of the goods actually moving goes in box 2 of the SD, not the total value of the contract.
88	Supply of building materials and equipment as part of a general construction or engineering contract where the transaction must be declared in boxes 8 or 9 of the VAT Return, but is only required on the SD for reconciliation purposes. The value of the goods actually moving goes in box 2 of the SD, not the total value of the contract.
90	Other transactions which do not fit any of the descriptions above.
97	Other transactions which do not fit any of the descriptions above where the transaction must be declared on the SD but is not included in boxes 8 or 9 of the VAT Return.
98	Other transactions which do not fit any of the descriptions above where the transaction must be declared in boxes 8 or 9 of the VAT Return, but is only required on the SD for reconciliation purposes.