_________________________________

_________________________________
_________________________________

Intrastat and Value- _________________________________

Added 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 _________________________________
_________________________________

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
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

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 _________________________________
_________________________________

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
What Is VAT? (cont.)
_________________________________
• VAT is applicable for all 27 countries of the European _________________________________
Union (EU)
_________________________________

BUT _________________________________
Warning _________________________________
• There are regional exceptions _________________________________
ΠFor example, Ceuta (Spanish enclave in northern Africa)
_________________________________
_________________________________
_________________________________
Many people aren’t aware of these exceptions!
_________________________________

What Is VAT? (cont.)

_________________________________
• VAT is applicable for most companies and organizations _________________________________
_________________________________
BUT _________________________________
Warning
_________________________________
• There are (local) exceptions, for example:
_________________________________
ΠAirlines
ΠNonprofit organizations _________________________________
_________________________________
_________________________________
_________________________________

What Is VAT? (cont.)

_________________________________
• VAT is applicable for most products and services _________________________________
_________________________________
BUT
Warning _________________________________
_________________________________
• There are (local) exceptions, for example:
ΠBank charges
_________________________________
ΠMedical services _________________________________
_________________________________
_________________________________
_________________________________

8
Principles of VAT
_________________________________
_________________________________
_________________________________
Goods
Invoice _________________________________
_________________________________
Invoice
G
Different oo
ds
_________________________________
VAT
scenarios
_________________________________
_________________________________

sfer
_________________________________
Goods tran
road
to plant ab
_________________________________

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 Each combination may have a _________________________________
Forget different way of handling!
_________________________________
_________________________________

11
 Local Scenario
_________________________________
_________________________________
Scenario: Sales and purchase invoice of € 1200, VAT tax rate of 20% _________________________________
100% payable 50% deductible _________________________________
Customer Revenue VAT payable Vendor Costs Deductible VAT _________________________________
1200 1000 200 1200 1100 100
_________________________________
50% deductible _________________________________
100% deductible
Vendor Costs Deductible VAT _________________________________
Vendor Costs Deductible VAT 1200 1000 100
1200 1000 200 _________________________________
Nondeductible VAT
100 _________________________________

12

Cross Border Within European Community (EC) Scenario

_________________________________
_________________________________
Scenario: Sales and purchase invoice of € 1200,VAT tax rate of 20% in purchasing country _________________________________

100% payable 100% deductible _________________________________

Vendor Costs Deductible VAT
Customer Revenue 1000 1000 200 _________________________________
1000 1000
_________________________________
VAT payable
200 _________________________________
_________________________________
• VAT is registered in receiving country _________________________________
• VAT rate equals rate in receiving country
_________________________________
• In many companies, 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
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 €300,000 ($400,000)
• 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.)

_________________________________
• Intrastat is applicable for all EU countries _________________________________
_________________________________
BUT
Warning _________________________________
• There are regional exceptions, for example: _________________________________
ΠSan Marino (not a member state of EU, but relevant for Italy) _________________________________
ΠCeuta (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
If the customer doesn’t have a VAT number,
Forget _________________________________
then no Intrastat reporting is required!
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

17
Important Issues That Influence Intrastat Handling (cont.)
• Do you have VAT registration numbers in other
countries?
You must report in more than one country:
Note 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.
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

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
Why Is There No Relationship Between VAT and Intrastat?
_________________________________
• Value difference _________________________________
ΠVAT reports invoice value; Intrastat reports statistical value
_________________________________
• Timing difference
_________________________________
ΠVAT 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
_________________________________
ΠFor example, triangulation (involvement of three different
countries) and subprocessing _________________________________
ΠConsignment stock _________________________________
_________________________________

21

How Can You Enforce a Relationship Between VAT

and Intrastat? _________________________________
• Value difference _________________________________
ΠMake statistical values equal to reporting values
_________________________________
• Timing difference
_________________________________
ΠMake 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 _________________________________
ΠUse 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 _________________________________
ΠYou 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 _________________________________
ΠAll logistical master data and master data used in invoices
_________________________________
• Sales process
_________________________________
ΠFor Intrastat only, cross-border flows within the EU are
relevant _________________________________
• Purchasing processes _________________________________
ΠFor 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 _________________________________
Not VAT relevant is not the same as
GOTCHA! zero rated VAT!
25

Master Data Maintenance — Customer Master

_________________________________
• Maintenance of geographical data like country _________________________________
and region
_________________________________
• Maintenance of VAT registration numbers, both local
and foreign _________________________________
• Maintenance of VAT indicators per sales area _________________________________
ΠVAT indicators can be used for correct VAT derivation _________________________________
_________________________________
_________________________________
_________________________________
_________________________________

26
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 _________________________________
ΠVAT indicators can be used for correct VAT derivation
_________________________________
ΠIndicators are seldom used because automatic derivation is
not always possible _________________________________
_________________________________
_________________________________

27

Master Data Maintenance — Vendor Master (cont.)

_________________________________
_________________________________
_________________________________
_________________________________
Default mode _________________________________
of transport.
Make it a _________________________________
required field;
otherwise you
_________________________________
have to
_________________________________
correct every
purchase _________________________________
invoice
manually! _________________________________

28

Master Data Maintenance — Material Master

_________________________________
• Maintenance of weight in kilograms _________________________________
ΠThis may require a conversion!
_________________________________
• Maintenance of VAT indicators per sales area and per
purchasing organization _________________________________
ΠVAT indicators can be used for correct VAT derivation _________________________________
ΠIndicators for the purchasing organization are seldom used _________________________________
because automatic derivation is not always possible
_________________________________
_________________________________
_________________________________
For Intrastat, it is required to make a
GOTCHA! distinction between physical goods _________________________________
and services!
29
Master Data Maintenance — Material Master (cont.)
_________________________________
_________________________________
_________________________________
Foreign trade export
view _________________________________
_________________________________
Commodity code
Export group _________________________________
_________________________________
Geographical info _________________________________
_________________________________
Some additional fields may be used _________________________________
Note
depending on the local reporting
requirements!
30

Master Data Maintenance — G/L Master

_________________________________
• Indicator for sales or purchase tax on company code _________________________________
data view _________________________________
ΠIndicator whether tax is mandatory or optional
fIf G/L account is tax relevant, always set tax to optional!
_________________________________
fNever use a combination of sales and purchase tax _________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

31

Sales Process Overview

_________________________________
_________________________________
_________________________________
VAT data
_________________________________
_________________________________
Sales Delivery Goods Sales Financial
Order Note Issue Invoice Invoice _________________________________
_________________________________
_________________________________
Intrastat data
_________________________________
_________________________________

32
Sales Order
_________________________________
• Copy rules in SD determine whether tax is relevant _________________________________
or not
_________________________________
ΠIt 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.)

_________________________________
• Pricing procedures must have been set up for VAT and _________________________________
statistical value calculation _________________________________
• It is important that condition records have been set up
_________________________________
ΠConditions will work only if you know where the goods are
being delivered from! _________________________________
_________________________________
_________________________________
Redetermine VAT and Intrastat in _________________________________
Solution the invoice; this is controlled via
copy control rules. _________________________________
_________________________________

34

Sales Order (cont.)

_________________________________
• The previous solution doesn’t work for self-bill _________________________________
customers because they create the invoice themselves
_________________________________
_________________________________
_________________________________
The customer is always right.
Solution _________________________________
_________________________________
_________________________________
_________________________________
_________________________________

35
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,
BUT
• VAT reports are based on financial invoices
• Intrastat reports require that the financial invoice was
created
38
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
 Purchasing Process Overview
_________________________________
_________________________________
VAT data
_________________________________
_________________________________
_________________________________
Purchase Goods Logistic Financial _________________________________
Order Receipt Invoice 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
ΠTherefore 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
_________________________________
Intrastat fields are also often _________________________________
incorrect because of unknown
country of dispatch! _________________________________
Issue
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
_________________________________
ΠIt 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
Cross-Border Goods Flows (cont.)
_________________________________

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: _________________________________
ΠAre goods returned to the original country of
_________________________________
departure?
fIf not then the standard SAP cannot handle it correctly _________________________________
ΠCredit notes must correct the original Intrastat report _________________________________
fStandard SAP cannot handle it correctly
_________________________________
_________________________________
Ignore it: Pretend
you aren’t aware of _________________________________
the issue.
Solution _________________________________
_________________________________

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
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 _________________________________
ΠActivate plants abroad?
_________________________________
ΠDefine tax codes
ΠAccount determination
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

49

Three Areas to Customize VAT (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 (cont.)
_________________________________
• Materials Management _________________________________
ΠTax classification material
_________________________________
ΠTax classification plant
ΠTax classification Account Assignment (purchase order item)
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

51

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.)

_________________________________
• Sales and Distribution _________________________________
ΠTax classification customer and material
_________________________________
ΠSales Tax ID number Determination
ΠPricing procedure (only relevant for plants abroad) _________________________________
ΠInterplant stock transfers within one company code _________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

53
 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 Receipts
WZFT02 WZFT01 56
Using Wizards (cont.)
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
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
What the Intrastat Wizards Don’t Mention (cont.)
_________________________________
• What to report (and when) _________________________________
• Determines what to _________________________________
report: _________________________________
ΠBased on goods
movement, or _________________________________
ΠBased 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, therefore: _________________________________
ΠYou have more than one VAT registration number
_________________________________
fOne for each country you are represented in
_________________________________
ΠYou have to report VAT and Intrastat in those countries

61

Plants Abroad (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
Setting Up VAT, Project Approach
_________________________________
1. Analyze goods flows _________________________________
2. Estimate workload _________________________________
3. Detailed check of all customizing
_________________________________
4. Design condition table
_________________________________
5. Design user exits
_________________________________
6. Test, test, test, test
_________________________________
7. Analyze output
8. 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, But Not All …

• Departure country varies
ΠBecause 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, sometimes the _________________________________

sales organization (see example 2)
• Complex sales flows (see example 3)
How do you solve these issues?
Issue
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

65
 Example 1: Unknown Delivery Plant
_________________________________
International sales _________________________________
organization 3

SAP2 Planning system _________________________________

_________________________________
Local sales
4 4
organization
4 _________________________________
1
_________________________________
5
Customer _________________________________
_________________________________
1: Customer places sales order.
2: Local sales org buys goods from international sales org. _________________________________
3: Purchase order from international sales org entered in external planning system.
4: Planning system determines which plant is going to produce and send the goods. _________________________________
5: Goods are sent to the customer.

66

Example 2: Customer Import or Sales Org Import

_________________________________
• Based on: _________________________________
ΠMaterial type
_________________________________
ΠCountry 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. Austrian customer orders goods _________________________________
from Dutch company.
2. Dutch company orders the goods _________________________________
from a Belgian sister company.
3. Belgian sister company orders _________________________________
goods from French sister company.
4. French company produces goods _________________________________
and sends them via Ceuta (Spain)
and Amsterdam (the Netherlands) to
the customer in Austria.
_________________________________
5. Administratively the goods are first
stored in a warehouse of the Dutch _________________________________
company and then shipped to
Austria. _________________________________
_________________________________
_________________________________

68
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
ΠMV45AFZZ for sales order processing
ΠRV60AFZZ for billing
• Determine correct country of destination
ΠRV60C9XX (see SAP Note 10560)
• Determine correct VAT registration number
ΠRV60AFZC
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

71
Solution 4: User Exits in Intrastat Programs
_________________________________
• Selecting/deselecting documents for Intrastat reporting _________________________________
ΠEXIT_SAPLV50G_001
_________________________________
• Correcting the Intrastat data
_________________________________
ΠEXIT_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, the more
complicated the handling of VAT and Intrastat becomes
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

74
Resources
_________________________________
• European Commission: Taxation and Customs Union _________________________________
Πhttp://europa.eu.int/comm/taxation_customs/index_en.htm
_________________________________
• Country VAT links:
_________________________________
Πhttp://ec.europa.eu/taxation_customs/taxation/vat/traders/vat_
community/index_en.htm _________________________________
• The International Bureau of Fiscal Documentation _________________________________
Πwww.ibfd.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, 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
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keesvanwesterop@kwestconsulting.nl
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