The Intrastat reporting is one of the most complicated reports. Intrastat reports are primarily based on the Sales and Distribution and the Materials Management modules as movement of goods data are the starting point for the Intrastat reports. It is not like VAT reporting based on the Financial accounting module.
The biggest challenge with SAP Intrastat reporting is related to the completeness and correctness of the relevant Intrastat transactions. In standard SAP Intrastat, often transactions are selected that should not have been selected (correctness) and transactions that should have been selected are not selected (completeness). There is no direct link with the VAT treatment of the Intrastat transactions.
Manual corrections are time-consuming and sometimes impossible.
An extraction of a SAP note
Cause and prerequisites: certain constellations of triangular deals cannot be modeled in the standard system.
Intrastat reports are increasingly adopted as a useful tool for tax authorities to evaluate the risk of VAT frauds, a topic high on the priority list of European Commission and local governments.
Mismatches between VAT returns and Intrastat reports have the current focus of tax authorities and can trigger an audit. In practice, reconciliation efforts afterwards are time-consuming and often not possible due to lack of an audit trail.
VAT compliance automation - slides of workshop - point of view of an implementer
Written by Richard Cornelisse
I started my career as a manager at Arthur Andersen and then became a partner in EY where I led the indirect tax performance team for Netherlands and Belgium. Currently I am a senior managing director of the Key Group.
I have over 20 years’ experience advising clients on international VAT issues. I am specialized in the tax aspects of financial transformations, shared service centre migration, and post merger integration work. I am also passionate about the indirect tax function effectiveness. I am also somewhat of a mentor, giving back to the profession. If you are interested in conversation and discussion, please feel free to contact me.