_________________________________

_________________________________
_________________________________

Intrastat and ValueAdded Tax (VAT) –
What You Need to
Know to Manage
Their Impact on Your
Global SAP Rollout

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Kees van Westerop
Kwest Consulting

_________________________________

© 2007 Wellesley Information Services. All rights reserved.

What We’ll Cover …

_________________________________

• Introduction

_________________________________

• What is VAT?

_________________________________

• Principles of VAT

_________________________________

• What is Intrastat?

_________________________________

• Relation between VAT and Intrastat

_________________________________

• Processes relevant for VAT and Intrastat
• Configuration

_________________________________

• Nonstandard situations

_________________________________

• Wrap-up

_________________________________
_________________________________
1

Introduction

_________________________________

• When rolling out your SAP system to the EU, both

_________________________________

Intrastat and VAT have a big impact on the way
processes have to be set
• This presentation is to make you aware of the impact
and how to deal with it

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

See Also: Kees van Westerop, “Doing Business in the EU? Tips
to Ensure Your Organization Correctly Configures and Reports
VAT” (Global SAP Environments conference, 2007).

_________________________________
2

In This Session ...

_________________________________

• The principles of Value-Added Tax (VAT) and Intrastat

_________________________________

are explained
• An overview of the most important processes relevant
for VAT and Intrastat is given
• The impact of the configuration is discussed
• Tip and tricks are given for how to handle nonstandard
situations

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
3

What We’ll Cover …

_________________________________

• Introduction

_________________________________

• What is VAT?

_________________________________

• Principles of VAT

_________________________________

• What is Intrastat?

_________________________________

• Relation between VAT and Intrastat

_________________________________

• Processes relevant for VAT and Intrastat
• Configuration

_________________________________

• Nonstandard situations

_________________________________

• Wrap-up

_________________________________
_________________________________
4

What Is VAT?

_________________________________

• VAT is an indirect tax, calculated on every sale of goods

_________________________________

and services
• The seller has to pay the VAT amounts to the tax
authorities; the purchaser can reclaim the charged
VAT from the tax authorities
• The final customer (consumer) cannot reclaim the
VAT paid
• Different rates apply, according to country

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
5

Ceuta (Spanish enclave in northern Africa) _________________________________ _________________________________ _________________________________ _________________________________ Many people aren’t aware of these exceptions! _________________________________ 6 What Is VAT? (cont. for example: Œ Bank charges Œ Medical services _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 8 .) _________________________________ • VAT is applicable for most products and services _________________________________ _________________________________ BUT _________________________________ Warning _________________________________ • There are (local) exceptions.) _________________________________ • VAT is applicable for most companies and organizations _________________________________ _________________________________ BUT _________________________________ Warning _________________________________ • There are (local) exceptions.What Is VAT? (cont.) _________________________________ • VAT is applicable for all 27 countries of the European _________________________________ Union (EU) _________________________________ BUT _________________________________ _________________________________ Warning • There are regional exceptions Œ For example. for example: Œ Airlines Œ Nonprofit organizations _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 7 What Is VAT? (cont.

Principles of VAT _________________________________ _________________________________ _________________________________ Goods _________________________________ Invoice _________________________________ Invoice Different VAT scenarios G oo _________________________________ ds _________________________________ _________________________________ _________________________________ sfer Goods tran road to plant ab _________________________________ 9 What We’ll Cover … _________________________________ • Introduction _________________________________ • What is VAT? _________________________________ • Principles of VAT _________________________________ • What is Intrastat? _________________________________ • Relation between VAT and Intrastat _________________________________ • Processes relevant for VAT and Intrastat • Configuration _________________________________ • Nonstandard situations _________________________________ • Wrap-up _________________________________ _________________________________ 10 Important Issues That Influence the Handling of VAT _________________________________ • Goods cross borders (yes/no) _________________________________ • Customer has VAT registration number (yes/no) _________________________________ • Origin and final destination of the goods _________________________________ • The destination of the sales invoice _________________________________ _________________________________ _________________________________ Don't Forget _________________________________ Each combination may have a different way of handling! _________________________________ _________________________________ 11 .

people aren’t aware that postings should be made like this! • _________________________________ _________________________________ 13 What We’ll Cover … _________________________________ • Introduction _________________________________ • What is VAT? _________________________________ • Principles of VAT _________________________________ • What is Intrastat? • Relation between VAT and Intrastat _________________________________ • Processes relevant for VAT and Intrastat _________________________________ • Configuration _________________________________ • Nonstandard situations _________________________________ • Wrap-up _________________________________ _________________________________ 14 .VAT tax rate of 20% in purchasing country Vendor Customer _________________________________ 100% deductible 100% payable Revenue 1000 1000 Costs 1000 _________________________________ Deductible VAT 200 1000 _________________________________ _________________________________ VAT payable _________________________________ 200 _________________________________ VAT is registered in receiving country • VAT rate equals rate in receiving country • In many companies. VAT tax rate of 20% 100% payable Customer Revenue 1200 _________________________________ 50% deductible VAT payable 1000 200 Vendor Costs 1200 _________________________________ Deductible VAT 100 1100 _________________________________ _________________________________ 50% deductible 100% deductible Vendor Vendor 1200 Costs Deductible VAT 1200 Costs Deductible VAT 100 1000 _________________________________ 200 1000 _________________________________ Nondeductible VAT _________________________________ 100 12 Cross Border Within European Community (EC) Scenario _________________________________ _________________________________ Scenario: Sales and purchase invoice of € 1200.Local Scenario _________________________________ _________________________________ _________________________________ Scenario: Sales and purchase invoice of € 1200.

then no Intrastat reporting is required! _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 17 .) _________________________________ • Intrastat is applicable for all EU countries _________________________________ _________________________________ BUT _________________________________ Warning • There are regional exceptions.000) • It is not a fiscal report • Some companies also have to report Extrastat for goods movement from inside the EU to the rest of the world _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 15 What Is Intrastat? (cont. but relevant for Italy) Œ Ceuta (Spanish enclave in northern Africa) _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 16 Important Issues That Influence Intrastat Handling _________________________________ • Does the customer have a Value-Added Tax (VAT) _________________________________ registration number? Don't Forget _________________________________ _________________________________ If the customer doesn’t have a VAT number.What Is Intrastat? _________________________________ • Intrastat is a statistical report on goods movement between European Union (EU) countries • Intrastat is required for companies fulfilling the threshold of €300. for example: Œ San Marino (not a member state of EU.000 ($400.

) _________________________________ • Do you have VAT registration numbers in other _________________________________ countries? Note _________________________________ _________________________________ You must report in more than one country: Use Plants Abroad functionality to report in those countries! Plants Abroad functionality enables VAT and Intrastat reporting in other countries than the company code countries.Important Issues That Influence Intrastat Handling (cont. _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 18 What We’ll Cover … _________________________________ • Introduction _________________________________ • What is VAT? _________________________________ • Principles of VAT _________________________________ • What is Intrastat? _________________________________ • Relation between VAT and Intrastat _________________________________ • Processes relevant for VAT and Intrastat • Configuration _________________________________ • Nonstandard situations _________________________________ • Wrap-up _________________________________ _________________________________ 19 Relation Between VAT and Intrastat _________________________________ • There is no relationship between VAT and Intrastat! _________________________________ _________________________________ BUT _________________________________ _________________________________ • Many companies enforce a relationship between VAT and Intrastat _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 20 .

Intrastat reports statistical value _________________________________ • Timing difference Œ VAT is reported based on invoices. Intrastat is reported based on goods flow _________________________________ _________________________________ _________________________________ • Some processes are relevant for VAT reporting but not _________________________________ for Intrastat reporting and vice versa _________________________________ Œ For example.Why Is There No Relationship Between VAT and Intrastat? _________________________________ • Value difference Œ VAT reports invoice value. triangulation (involvement of three different countries) and subprocessing Œ Consignment stock _________________________________ _________________________________ _________________________________ 21 How Can You Enforce a Relationship Between VAT and Intrastat? _________________________________ • Value difference Œ Make statistical values equal to reporting values _________________________________ • Timing difference Œ Make sure that goods flow is always registered in the same period as the invoice _________________________________ _________________________________ _________________________________ • Some processes are relevant for VAT reporting but not _________________________________ for Intrastat reporting and vice versa _________________________________ Œ Use specific VAT codes and business transaction types (used _________________________________ for Intrastat reports) to distinguish these kinds of processes _________________________________ _________________________________ 22 Conclusion _________________________________ • There is no relationship between VAT and Intrastat _________________________________ • For specific processes you can create a kind of _________________________________ relationship between VAT and Intrastat _________________________________ Œ You can use this internally to check the accuracy of your _________________________________ reporting! • Statistical offices in the EU countries are aware that _________________________________ there is no relationship between VAT and Intrastat! BUT Many processes relevant for VAT are also relevant for Intrastat and vice versa Note THIS IS THE ONLY RELATIONSHIP! _________________________________ _________________________________ _________________________________ _________________________________ 23 .

What We’ll Cover … _________________________________ • Introduction _________________________________ • What is VAT? _________________________________ • Principles of VAT _________________________________ • What is Intrastat? _________________________________ • Relation between VAT and Intrastat • Processes relevant for VAT and Intrastat _________________________________ • Configuration _________________________________ • Nonstandard situations _________________________________ • Wrap-up _________________________________ _________________________________ 24 Processes Relevant for VAT and Intrastat _________________________________ • Master data maintenance Œ All logistical master data and master data used in invoices _________________________________ • Sales process Œ For Intrastat only. both local and foreign • Maintenance of VAT indicators per sales area _________________________________ _________________________________ _________________________________ Œ VAT indicators can be used for correct VAT derivation _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 26 . cross-border flows within the EU are relevant _________________________________ _________________________________ _________________________________ • Purchasing processes Œ For Intrastat only in relation to cross-border goods flows within the EU _________________________________ • Cross-border goods flows _________________________________ • Some special (local) processes like lease cars and _________________________________ returns GOTCHA! Not VAT relevant is not the same as zero rated VAT! _________________________________ _________________________________ 25 Master Data Maintenance — Customer Master _________________________________ • Maintenance of geographical data like country _________________________________ and region • Maintenance of VAT registration numbers.

Master Data Maintenance — Vendor Master _________________________________ • Maintenance of geographical data like country _________________________________ and region • Maintenance of VAT registration numbers. both local and foreign • Maintenance of VAT indicators per purchasing organization _________________________________ _________________________________ _________________________________ _________________________________ Œ VAT indicators can be used for correct VAT derivation _________________________________ Œ Indicators are seldom used because automatic derivation is _________________________________ not always possible _________________________________ _________________________________ 27 Master Data Maintenance — Vendor Master (cont. Make it a required field.) _________________________________ _________________________________ _________________________________ _________________________________ Default mode of transport. it is required to make a distinction between physical goods and services! _________________________________ 29 . otherwise you have to correct every purchase invoice manually! _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 28 Master Data Maintenance — Material Master _________________________________ • Maintenance of weight in kilograms Œ This may require a conversion! _________________________________ _________________________________ • Maintenance of VAT indicators per sales area and per _________________________________ purchasing organization Œ VAT indicators can be used for correct VAT derivation _________________________________ Œ Indicators for the purchasing organization are seldom used _________________________________ because automatic derivation is not always possible _________________________________ _________________________________ GOTCHA! _________________________________ For Intrastat.

) _________________________________ _________________________________ _________________________________ Foreign trade export view _________________________________ _________________________________ Commodity code Export group _________________________________ _________________________________ Geographical info _________________________________ _________________________________ Some additional fields may be used depending on the local reporting requirements! Note _________________________________ 30 Master Data Maintenance — G/L Master _________________________________ • Indicator for sales or purchase tax on company code _________________________________ data view _________________________________ Œ Indicator whether tax is mandatory or optional fIf G/L account is tax relevant.Master Data Maintenance — Material Master (cont. always set tax to optional! _________________________________ fNever use a combination of sales and purchase tax _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 31 Sales Process Overview _________________________________ _________________________________ _________________________________ VAT data Sales Order Delivery Note Goods Issue _________________________________ Sales Invoice _________________________________ Financial Invoice _________________________________ _________________________________ _________________________________ Intrastat data _________________________________ _________________________________ 32 .

) _________________________________ • Pricing procedures must have been set up for VAT and _________________________________ statistical value calculation • It is important that condition records have been set up _________________________________ _________________________________ Œ Conditions will work only if you know where the goods are being delivered from! _________________________________ _________________________________ _________________________________ Solution Redetermine VAT and Intrastat in the invoice.Sales Order _________________________________ • Copy rules in SD determine whether tax is relevant _________________________________ or not _________________________________ Œ It is also possible that it is only partially relevant • Derivation of the tax codes _________________________________ • Derivation of the tax percentage _________________________________ • Calculation of the statistical value _________________________________ • Intrastat fields are filled in based on master data and _________________________________ customization settings _________________________________ _________________________________ _________________________________ 33 Sales Order (cont. _________________________________ _________________________________ _________________________________ 34 Sales Order (cont. this is controlled via copy control rules. _________________________________ Solution _________________________________ _________________________________ _________________________________ _________________________________ 35 .) _________________________________ • The previous solution doesn’t work for self-bill _________________________________ customers because they create the invoice themselves _________________________________ _________________________________ _________________________________ The customer is always right.

_________________________________ _________________________________ _________________________________ BUT _________________________________ _________________________________ • VAT reports are based on financial invoices _________________________________ • Intrastat reports require that the financial invoice was _________________________________ created _________________________________ 38 .Delivery Note _________________________________ • Doesn’t have Intrastat nor VAT data _________________________________ • Data is only used within condition records _________________________________ • Plant determines the ship-from country _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 36 Sales Invoice _________________________________ • The sales invoice contains the final data for VAT and _________________________________ Intrastat • Because there can be a big time difference between order creation and invoice creation. data based on condition records must be redetermined • Other data is copied from the sales order _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 37 Financial Invoice _________________________________ • The financial invoice contains the same data as the _________________________________ sales invoice • VAT and Intrastat data are the same as in the sale invoice.

Purchasing Process Overview _________________________________ _________________________________ VAT data _________________________________ _________________________________ _________________________________ Purchase Order Goods Receipt Logistic Invoice Financial Invoice _________________________________ _________________________________ _________________________________ _________________________________ Intrastat data _________________________________ 39 Sales Order _________________________________ • Automatic VAT derivation for goods is not always _________________________________ possible because the origin of the goods is not known. for services it is possible _________________________________ _________________________________ Œ Therefore Evaluated Receipt Settlement (ERS) is not possible for EU countries! _________________________________ • Calculation of the statistical value _________________________________ • Intrastat fields are filled in based on master data and _________________________________ customization settings _________________________________ Issue _________________________________ Intrastat fields are also often incorrect because of unknown country of dispatch! _________________________________ 40 Goods Receipt _________________________________ • Doesn’t have any effect on Intrastat and VAT data! _________________________________ • You can decide to report the goods receipt value instead _________________________________ of invoiced value _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 41 .

Logistics Invoice _________________________________ • The logistics invoice contains the final data for VAT _________________________________ and Intrastat • Data is entered manually _________________________________ _________________________________ Œ It is a legal requirement that data is entered as it appears on the invoice. even if it is incorrect! _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 42 Financial Invoice _________________________________ • The financial invoice contains the same data as the _________________________________ logistics invoice • VAT and Intrastat data are the same as in the sales invoice _________________________________ _________________________________ _________________________________ BUT _________________________________ _________________________________ • VAT reports are based on financial invoices _________________________________ _________________________________ _________________________________ 43 Cross-Border Goods Flows _________________________________ _________________________________ Company _________________________________ _________________________________ _________________________________ Warehouse Warehouse Goods flow _________________________________ _________________________________ • The company owns a warehouse in Holland and _________________________________ another in Italy • Goods flow from Holland to Italy must be reported in both Holland and Italy! Issue _________________________________ _________________________________ 44 .

) _________________________________ _________________________________ Company _________________________________ _________________________________ _________________________________ Warehouse Warehouse Goods flow _________________________________ _________________________________ • Use Plants Abroad functionality to solve the issue! _________________________________ _________________________________ _________________________________ Solution 45 Returns and Credit Notes _________________________________ • Returns and credit notes are important subjects: Œ Are goods returned to the original country of departure? fIf not then the standard SAP cannot handle it correctly Œ Credit notes must correct the original Intrastat report fStandard SAP cannot handle it correctly _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ Solution Ignore it: Pretend you aren’t aware of the issue. _________________________________ _________________________________ _________________________________ 46 What We’ll Cover … _________________________________ • Introduction _________________________________ • What is VAT? _________________________________ • Principles of VAT _________________________________ • What is Intrastat? • Relation between VAT and Intrastat _________________________________ • Processes relevant for VAT and Intrastat _________________________________ • Configuration _________________________________ • Nonstandard situations _________________________________ • Wrap-up _________________________________ _________________________________ 47 .Cross-Border Goods Flows (cont.

) _________________________________ _________________________________ Materials Management _________________________________ _________________________________ Where to FIND it _________________________________ _________________________________ Purpose: Correct VAT Code Derivation _________________________________ IMG path: Materials Management Æ Purchasing Æ Taxes _________________________________ _________________________________ _________________________________ 50 .Three Areas to Customize VAT _________________________________ _________________________________ Financial Accounting _________________________________ _________________________________ Where to FIND it _________________________________ _________________________________ _________________________________ _________________________________ Purpose: Correct Posting _________________________________ IMG path: Financial Accounting Æ Financial Accounting Global Settings Æ Tax on Sales/Purchases _________________________________ 48 Three Areas to Customize VAT (cont.) _________________________________ • Financial Accounting Œ Activate plants abroad? Œ Define tax codes Œ Account determination _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 49 Three Areas to Customize VAT (cont.

) _________________________________ _________________________________ Sales and Distribution _________________________________ _________________________________ Where to FIND it _________________________________ _________________________________ _________________________________ _________________________________ Purpose: Correct VAT Code Derivation _________________________________ IMG path: Sales and Distribution Æ Basic Functions Æ Taxes Æ Define Tax Relevancy Of Master Records _________________________________ 52 Three Areas to Customize VAT (cont.Three Areas to Customize VAT (cont.) _________________________________ • Sales and Distribution Œ Tax classification customer and material Œ Sales Tax ID number Determination Œ Pricing procedure (only relevant for plants abroad) Œ Interplant stock transfers within one company code _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 53 .) _________________________________ • Materials Management Œ Tax classification material Œ Tax classification plant Œ Tax classification Account Assignment (purchase order item) _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 51 Three Areas to Customize VAT (cont.

Customizing _________________________________ • You can set up Intrastat via the customizing menu or _________________________________ using wizards via the standard SAP menu: _________________________________ _________________________________ 1: Sales and Distribution _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 54 Customizing (cont.) _________________________________ • You can set up Intrastat via the customizing menu or _________________________________ using wizards via the standard SAP menu: (cont.) _________________________________ _________________________________ 2: Materials Management _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 55 Using Wizards _________________________________ • Wizards can guide you through the settings for Intrastat _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ Dispatches WZFT02 Receipts WZFT01 56 .

) _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ GOTCHA! _________________________________ _________________________________ But they aren’t complete! _________________________________ _________________________________ _________________________________ 57 What the Intrastat Wizards Don’t Mention _________________________________ • Maintain additional company code data (OBY6) _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 58 What the Intrastat Wizards Don’t Mention (cont.) _________________________________ • Conversion for intercompany billing _________________________________ _________________________________ Convert export into import! Relevant for the plants abroad and intercompany goods flows! _________________________________ _________________________________ _________________________________ IMG path: Sales and Distribution Æ Foreign Trade Customs Æ Basic Data for Foreign Trade Æ Control/Conversion _________________________________ _________________________________ _________________________________ _________________________________ Where to FIND it 59 .Using Wizards (cont.

therefore: Œ You have more than one VAT registration number _________________________________ _________________________________ fOne for each country you are represented in _________________________________ Œ You have to report VAT and Intrastat in those countries 61 Plants Abroad (cont.What the Intrastat Wizards Don’t Mention (cont.) _________________________________ _________________________________ _________________________________ IMG path: Financial Accounting Æ Financial Accounting Global Settings Æ Tax on Sales/Purchases Æ Basic Settings Æ Plants Abroad _________________________________ _________________________________ _________________________________ _________________________________ Where to FIND it _________________________________ _________________________________ _________________________________ 62 . or Œ Based on invoice _________________________________ _________________________________ IMG path: Sales and Distribution Æ Foreign Trade Customs Æ Periodic Declarations Æ Control Data Æ Data Selection Control Where to FIND it _________________________________ _________________________________ _________________________________ 60 Plants Abroad _________________________________ _________________________________ _________________________________ _________________________________ Warehouse _________________________________ Comp code _________________________________ _________________________________ • You are represented in more than one country.) _________________________________ • What to report (and when) _________________________________ • Determines what to _________________________________ report: _________________________________ Œ Based on goods _________________________________ movement.

test _________________________________ 7. test. sometimes the sales organization (see example 2) • Complex sales flows (see example 3) _________________________________ _________________________________ _________________________________ _________________________________ How do you solve these issues? _________________________________ Issue _________________________________ 65 . But Not All … _________________________________ • Departure country varies Œ Because you order the goods from an external supplier _________________________________ _________________________________ • Order needs to be planned and the delivering plant is _________________________________ unknown (see example 1) • Sometimes customer does the import. Project Approach _________________________________ 1.Setting Up VAT. Test. Design condition table _________________________________ 5. Design user exits 6. Write user instructions and customizing documentation _________________________________ _________________________________ _________________________________ 63 What We’ll Cover … _________________________________ • Introduction _________________________________ • What is VAT? _________________________________ • Principles of VAT _________________________________ • What is Intrastat? _________________________________ • Relation between VAT and Intrastat _________________________________ • Processes relevant for VAT and Intrastat • Configuration _________________________________ • Nonstandard situations _________________________________ • Wrap-up _________________________________ _________________________________ 64 SAP Can Handle a Lot of Situations. Estimate workload _________________________________ 3. Analyze goods flows _________________________________ 2. Analyze output _________________________________ 8. Detailed check of all customizing _________________________________ 4. test.

Austrian customer orders goods from Dutch company. 5: Goods are sent to the customer. 5. Administratively the goods are first stored in a warehouse of the Dutch company and then shipped to Austria. 3: Purchase order from international sales org entered in external planning system.Example 1: Unknown Delivery Plant _________________________________ _________________________________ International sales organization 3 SAP2 _________________________________ Planning system _________________________________ Local sales organization 4 4 _________________________________ 4 1 _________________________________ 5 _________________________________ Customer _________________________________ 1: Customer places sales order. _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 68 . 4. French company produces goods and sends them via Ceuta (Spain) and Amsterdam (the Netherlands) to the customer in Austria. 2. 4: Planning system determines which plant is going to produce and send the goods. Dutch company orders the goods from a Belgian sister company. Belgian sister company orders goods from French sister company. _________________________________ _________________________________ 66 Example 2: Customer Import or Sales Org Import _________________________________ • Based on: Œ Material type Œ Country of origin _________________________________ _________________________________ _________________________________ • Customer decides whether it will do the import of the goods or whether the selling organization needs to do the import _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 67 Example 3: Complex Sales Flows _________________________________ _________________________________ 1. 2: Local sales org buys goods from international sales org. 3.

Solution 1: Create Additional Condition Tables _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ Standard Conditions _________________________________ _________________________________ _________________________________ _________________________________ Additional + Standard Conditions _________________________________ 69 Solution 2: Requirements in Condition Tables _________________________________ • Solution 2: Requirements in condition tables _________________________________ _________________________________ Example of requirement _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ ABAP coding allows you to make modifications _________________________________ 70 Solution 3: User Exits in SD Programs _________________________________ • Determine correct departure country Œ MV45AFZZ for sales order processing Œ RV60AFZZ for billing _________________________________ _________________________________ • Determine correct country of destination Œ RV60C9XX (see SAP Note 10560) _________________________________ • Determine correct VAT registration number Œ RV60AFZC _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 71 .

the more complicated the handling of VAT and Intrastat becomes _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 74 .Solution 4: User Exits in Intrastat Programs _________________________________ • Selecting/deselecting documents for Intrastat reporting Œ EXIT_SAPLV50G_001 _________________________________ • Correcting the Intrastat data Œ EXIT_SAPLV50G_002 _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 72 What We’ll Cover … _________________________________ • Introduction _________________________________ • What is VAT? _________________________________ • Principles of VAT _________________________________ • What is Intrastat? _________________________________ • Relation between VAT and Intrastat _________________________________ • Processes relevant for VAT and Intrastat • Configuration _________________________________ • Nonstandard situations _________________________________ • Wrap-up _________________________________ _________________________________ 73 Lessons Learned _________________________________ • Deriving correct VAT and Intrastat has a big impact on _________________________________ the logistical processes • Make an inventory of all logistic flows • Intrastat will never be 100% correct. this is often acceptable for the statistical offices • The more “sales partners” get involved.

ibfd.htm _________________________________ • Country VAT links: Œ http://ec.europa.eu/taxation_customs/taxation/vat/traders/vat_ community/index_en.int/comm/taxation_customs/index_en. simple flows only Implementing VAT and Intrastat is time consuming Involve Finance and Administration (F&A) and logistical departments Test all flows extensively! _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 76 Your Turn! _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ How to contact me: Kees van Westerop keesvanwesterop@kwestconsulting.Resources _________________________________ • European Commission: Taxation and Customs Union Œ http://europa.nl _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 75 7 Key Points to Take Home _________________________________ • VAT and Intrastat are applicable in all EC countries _________________________________ • Global principles with many local exceptions _________________________________ • Part of the settings are to be maintained by the logistical _________________________________ • • • • department Standard SAP can handle the standard.nl _________________________________ _________________________________ 77 .htm _________________________________ _________________________________ _________________________________ • The International Bureau of Fiscal Documentation Œ www.eu.

Notes: ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ .

All rights reserved. MA 02026 Copyright © 2007 Wellesley Information Services. Dedham. Suite 308.Wellesley Information Services. 990 Washington Street. .

Sign up to vote on this title
UsefulNot useful