Indicate import and export during chain transactions
When more than 2 parties are involved, the VAT treatment depends on the VAT treatment of the prior transactions:
- ABC (D) transactions involving a supply of goods which are exported to a place outside the EU. In this case, it is important to identify in which part of the chain the export takes place to determine the impact on the VAT qualification of the other parties in the chain transaction
- ABC (D) transactions involving a supply of goods which are imported to a place inside the EU. Again, it is important to identify in which part of the chain the export takes place to determine the impact on the VAT qualification of the other parties in the chain transaction
In chain transactions with non EU countries, the correct VAT treatment depends on which party is acting as importer or exporter of records. Additional data has to be used to either default the party acting as importer or exporter of records, or define this at sales order level.
Import / export transactions ABC transactions
Specific considerations about export/import
- Define the correct legal partner for VAT
- Determine the correct ship-to country
- Differentiate between export/import and out of scope
The below examples explain the difficulties from a VAT automation perspective, as standard SAP operates on company level only.
Import scenario
A Dutch Sales organization is selling goods to a French customer. The goods are not in stock and are purchased from a Singapore group company. Transport is by vessel from Singapore to Rotterdam and then by truck to the French customer.
To determine the VAT treatment of the supply chain, it is essential to know who the importer of records is. Is that the NL sales organization or the FR customer and where will the import take place (country).