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The SAP “Plants Abroad” functionality is designed to address tax issues for companies that operate warehouses or distribution centers and hold VAT registration numbers in multiple EU countries. This feature facilitates the management of various tax reporting countries within a single company code, ensuring the correct company VAT registration number is used for sales invoices, properly applying VAT treatment for cross-border stock transfers and consignment transactions, and streamlining VAT and Intrastat reporting.
The “Plants Abroad” functionality enables automated VAT and Intrastat postings for cross-border movements of owned stock and supports additional reporting requirements related to cross-border VAT registrations. It’s important to note that while this functionality enhances VAT reporting and exchange rate handling, it does not eliminate the complexities involved in tax determination, which is a common misconception.