As of January 1, 2015, in the European Union, services in the areas of telecommunications, radio, television, and electronically-provided services must be taxed in the country of the recipient of the services. Contract Accounts Receivable and Payable provides functions for meeting this requirement.
Technical Name of Product Feature | Not relevant |
---|---|
Product feature Is | New |
Country Dependency | Valid for European Union countries |
Software Component Version |
|
Application Component |
|
Available From | SAP Enhancement Package 7 (SP06) for SAP ERP 6.0 |
Required Business Functions | None |
According to European Union laws, EU companies must adhere to the following rules when providing services in another EU country:
Do not debit business customers for VAT
Charge private customers the VAT of the EU country in which the services were received (destination country)
Example
You are a German company delivering goods or services to business customers in France.
The following account assignment data that is relevant to the transaction is entered in posting area S001
:
Company code (DE): 0001
Main and subtransaction: xxxx xxxx
Tax determination code: A1
(19% VAT in Germany)
For services provided in France, you maintain posting area 2014 as follows:
Tax determination code: A1
Destination country: FR
Alternative tax determination code B2C: F1
(20% VAT in France)
Alternative tax determination code B2B: AX
(0% VAT with EU Code 4)
The system determines the alternative tax determination code. As a result, business customers are not charged any VAT, and private customers are charged 20% VAT.
For the country of each company code, define a tax on sales/purchases code for all tax rates. In doing so. also take into account additional tax codes for deliveries abroad.
Maintain the company code for transaction-relevant account assignments and enter a tax determination code there.
Enter an alternative tax determination code for deliveries abroad in Customizing for Contract Accounts Receivable and Payable under
(posting area 2104).