It is legal requirements in many countries to report VAT in the market FCY (i.e. GBP in UK) even if sold out of a DK warehouse to UK.

When posting sales and purchases in FCY the transactions in G/L Entries and VAT Entries should hold the currency information of the original document/transaction.

• Source Currency Code - seems to work already?
• Source Currency Factor - exchange rate as of the posting date/VAT date of the transaction
• Source Currency Amount - amount in FCY matching each Amount LCY in G/L Entries and VAT entries - not only the order total amount.

Please review the ChatGPT answer for a business case:

"When a Danish company sells goods in the UK and is required to report VAT to the UK tax authorities (HMRC), the VAT must be reported in British Pounds (GBP).

Here’s why:

1. UK VAT Reporting Requirements: Since the UK has its own tax authority, HMRC requires all VAT returns to be submitted in the local currency, which is GBP. This applies to all foreign businesses that are VAT registered in the UK, including those based in Denmark.
2. Conversion of Currency: If your transactions are in Danish Kroner (DKK) or any other currency, you will need to convert these amounts into GBP for the purpose of VAT reporting. HMRC typically provides guidance on the exchange rate to use, which is usually the rate published by HMRC or another recognized source on the day the VAT is incurred.
3. VAT Registration in the UK: If your Danish company is VAT registered in the UK due to crossing the threshold for distance selling, then all VAT-related activities for the UK market, including invoicing and reporting, must comply with UK rules, which includes reporting in GBP."