SAP Tax Code 2-digit limit

Posted by Sap Land Friday, 6 May 2011 11:56
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Question :

I just met with a new customer this week, where they have already decided to use TAXEUR, for multiple European countries. And I agree, already after a few days it becomes overly complex. Their reasoning is this: they use a so-called European Principal Company (EPC) model, where, for tax reasons, the owner of all the goods and material is located in Switzerland. The different EU countries have sales offices, make sales to local customers, and then invoice the customer. But the EPC in Switzerland is responsible for shipping the goods to the, say Dutch, customer. The goods may come out of a Dutch warehouse, or a warehouse in another country. After the transaction, EPC sends an I/C invoice to the Dutch sales office and pays them a commission on the sale. Purpose seems to be Reverse charge transactions on the VAT to pay less taxes. Is TAXEUR really necessary for this purpose. They do use Plants Abroad functionality.




Answers :

There is no reason why you cannot make the same tax code perform similar functions in various countries, with different tax rates and properties but the same tax type. Why not use country-specific tax procedures instead of a single, all-embracing TAXEUR? I am a VAT expert and have designed tax schemes for many very large companies and the biggest tax procedure I ever designed used 71 codes, well within the limit you describe. They were able to work perfectly well with my tax scheme and never had a problem. A single tax procedure that is all things to all men strikes me as unnecessarily complicated. How do the users find the code they need among 1134 of them in a drop-down list? How do your SD consultants get on?


Roy Brookes AFA, FInstBA,

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