As of January,1st 2015, telecommunications, radio, television and electronic services are to be taxed in the European Union in the country of the service recipient. Contract Accounts Receivable and Payable provides functions for implementing this regulation.
Technical Name of Product Feature |
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Product Feature Is | New |
Country Dependency | Valid for all countries |
Software Component Version |
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Application Component |
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Available As Of | SAP Enhancement Package 7 for SAP ERP 6.0, SP 06 |
Required Business Functions |
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According to legislation, EU companies must observe the following when performing services in another EU country:
Not charge commercial customers VAT.
Charge private customers the VAT for the EU country in which they receive the service (country supplied).
Example
You are supplying a commercial customer in France.
The following transaction-relevant data has been recorded in the posting area S001
:
Posting area (DE): 0001
Main and subtransaction: xxxx xxxx
Tax determination code: A1
(19% VAT in Germany)
You maintain posting area 2014 as follows for services performed in France:
Tax determination code: A1
Country supplied: FR
Alternative B2C tax determination code: F1
(20% VAT in France)
Alternative B2B tax determination code: AX
(0% VAT with EU code 4)
The system determines the alternative tax determination codes. This results in commercial customers not being charged VAT and private customers being charged 20% VAT.
Define a sales tax code for all tax records for the country for a company code. Observe any additional tax indicators for deliveries to another country.
Maintain the posting area for transaction-relevant account assignments and record a tax determination code here.
In Customizing for Contract Accounts Receivable and Payable under
posting area 2104), enter an alternative determination code for deliveries to another country.