UK requirements on VAT

Hi Experts,
I'm currently working for a UK based company which has to be UK compliant for VAT
The currency settings for the problematic company code is EUR as local currency. The reason therefore is that lots of its vendors send invoices in EUR. Nevertheless, UK tax authority requires the VAT amount of the invoice to be reflected in GBP with the same exchange rate as indicated in the vendor invoice, not the one maintained every week in the system.
Therefore we need to find a way of entering a different exchange rate when keying in the invoice. This is where we block.
With a local currency in GBP there wouldn't be any problem. A box is then available to enter the amount in local currency (which then calculates the exchange rate of the invoice).
But with company code currency in EUR there is no option for reflecting the VAT amount in GBP as we have a invoice in EUR and the company code currency is EUR. So for the system there is no need/reason at first sight to provide a box for entering the local currency amount (as both the invoice currency and company code currency are the same). Nevertheless, the UK tax authority wants to ensure that the VAT amount declared both on the vendor side and customer side is equal for the same invoice. This means that the exchange rate for the VAT calculation should be identical both at customer and vendor side. This is the reason why is our case we need to enter the GBP VAT amount with the same exchange rate as the one on the invoice. Therefore we need a box to indicate the invoice exchange rate for GBP VAT.
Any advice is welcome!
Thanks and best regards,
François-Xavier Willaert

Thanks for the reply.
You're are talking about obvious reasons, could you specify these reasons. Parallel currency is already implemented but it doesn't adress the problem.
Our UK Company code has EUR as Currency key. This means that for this company code, the local currency is EUR. If it receives and pays invoices in EUR it has also to post the VAT amount in GBP shown by the vendor on his invoice according to UK VAT regulation. We need to be able to set the rate per invoice and not using the automatic one in the table for a fixed rate per month.
Indeed, the VAT guide (VAT700) makes it clear that the suppliers must show the sterling equivalents of the Net and VAT amounts on the VAT invoice. This means that the VAT amount posted will not depend on the exchange rate set up in the system.
The solution you proposed concerns the company code in GBP which receives an invoice in EUR. For this case, we have no problems.
In few words, we need the possibility for a EUR company code which receives an invoice in EUR to be able to post the VAT in GBP according to UK legal requirements.
The remaining problem now is to have the exchange rate field open for manual change!
Please help gurus!!
thanks
Edited by: fxwillaert on May 7, 2010 10:45 AM

Similar Messages

VAT requirement in Taiwan

Hello,
I have a subsidiary in Taiwan using SBO2007B SP00 PL10.
I want to upgrade it to SBO 8.81 PL04 with SQL Server 2008 R2.
They are currently using a local addon used to cover legal requirement about VAT declaration. GUI VAT Add-on from ITTS.
I was told this addon is not available for the target configuration of my server. the latest release they have is with SBO 8.8 ands SQL Server 2005
I couldn't find so much information about this addon so I just would like to know if the functionalities of this addon are now covered in the new version of SBO
Did you make installation of SBO in Taiwan ? do you know this VAT requirement ?
Thank you
Sébastien

Hi shanbagavalli,
If an extracted record has the same key as a record that already exists, the duplicate record causes short dump.
refer page : 218-219 in the following link:
https://www.sdn.sap.com/irj/servlet/prt/portal/prtroot/docs/library/uuid/67efb9bb-0601-0010-f7a2-b582e94bcf8a
assign points if useful ***
Thanks,
Raj

Enhancement request for VAT Report of Customer and Vendor.

Hello SAP Gurus,
Have enhancement request for adding new fields in existing VAT report of Customer and Vendor like user id, GL account etc.
As I am fresher, can you please help me that how I need to approach. Thanks for your support.
Regards,
Saleem

Hello Saleem,
Almost all fields required for VAT reporting are available in standard tax report
S_ALR_87012357 .
You have to configure the layout from the selection screen as below
regards
pb

Vat report on purchase?

Hi Guru,
I have a requirement like vat report on purchase . So I would like to request you to please guide me.
Thanks & regards
Ranjit

Hi
Use this t.code S_ALR_87012357
Regards
T N R

Location Configuration for Tax Types VAT, Excise

Hi,
Our Client has manufacturing plants, Depot Sales in different states and even more than one plant in a State with different excise registrations.
Some of the products are excisable and some are not.
The requirement is Vat payble is to calculated State wise (for all the Depot in the State) and Cenvat is calculated for each Division (for each excise registration)
For Vat purpose if i configure Location as State and wareshouse as Depot, i am able to generate the tax payment wizard, XL Reporter like purchase register and sales register by using location as state
But for CENVAT if location is selected as state only one division report (as only one ECC no. can be linked to location) can be generated, but our client has plants with different ECC nos. in the same state.
Alternatively,
If i create seperate location for each ECC no., i am not able to generate the Vat report state wise.
How to configure the Locations ?
Please suggest.
Thanks,
Kumar.

Dear M K kumar,
As per your requirement you only run Tax wizard by location.
For VAT you have not an issue.
but for excise payment not possible.
So for that if you you have two ECC No. in one state so create two location Like Maharastra1 & Maharastra2
and check accordingly.
Regards
MANGESH PAGDHARE.

Poland VAT CODE Configuration

Hi Gurus,
We have a requirement for VAT code creation for Poland for below scenario.
For vendor Invoice value - 123/-
1. One value with 23 percent rate- 50 and corresponding to it 11,5 amount for VAT- together 61,5.
2. Second value on 61.5 which should have tax rate free of VAT.
Please share your inputs to meet the requirement
Thanks in advance

Hello,
I created a tax code as below, tax amount gets posted correctly but I should get base amount 50/- instead of 100
Highly appreciated for any inputs.
Thanks

Clearing of Vat receviable accounts and payble accounts through F.13

Hi All,
I have one requirement on vat accounts clearing in F.13 please find the issue details below and give your suggestions.
We have vat receivable and payable accounts in our company ,
this accounts we have to clear through F.13 ,to clear this accounts in F.13
what kind of settings need in maintain in automatic clearing process (criterion ) need to maintain under automatic clearing procedure
Please advice
Thanks and Regards,
Naresh

HI Gadupudi naresh,
Yes the above said statement was correct, Open Item Management G/L Accounts only used do the Clearing. These Excise & VAT gl accounts are not managed as Open Item Management Items.
Regards

VAT Configuration for India with out CIN

Hi Experts,
Greetings. My clinet is into service industry,basically our products include online data sets, software. When the Project was implemented as per the discussions with the tax experts the system is configured with out CIN. All these Proudcts are liable only for Service Tax.So a new "ZSER" tax condition type is created and included in the pricing procedures.
Now Business decided to sell few more products in India through India Legal Entity. Few tax experts say that some of these Products may fall Under VAT.
As I am completely New to India Tax scenarios could some one help me on what questions I can ask the business regardng VAT and When we say VAT does it also mean that a separate document need to be created like Excise invoice or some thing before we actually create an Invoice and wil there be any additonal reporting requirements from VAT perspective?
I have gone through the VAT doucmnetation available in the Net but couldnt undestand completely as i am not much familar with CIN.
Request your help in this Regard.
Thanks,
Srini

Hi Prasanth,
Thanks a lot for your reply. The condtion types JIVP and JIVC are not available in our system.How ever we will create two new tax conditon types by copying the most nearst condtion type and add them into the SD pricing Procedure and FI tax Procedure.
Do we need to configure these two condtion types as tax determinition rules in Path: Spro-> IMG> S&D->Basic functions->Taxes>define tax determinatin rules : Here for these two condtion types we need to define the possible classfications for the cusotmer as well as material and subsequently Cleanse the cusotmer master data and material master data to update the classification for these two tax categories?
Is there any other option like using one tax category like MWST/UTXJ and make the two condition types to work. I am habituated to u.s and canada tax procedures where we can have multiple tax conditon types using one tax category.Please excuse if my question is basic.
Thanks,
Srini

Vat purchasing report

Hi All,
There is a requirement in vat purchasing report to group the ap invoices based on the tax rate and it should print the sum of all the lines of one purticular rate(say 12) and then its line amout, and then sum of tax amount and in the second line .
For Example:
I have created 2 invoices 100 and 101
the report should print first the data of invoice 100
invoice 100 has 2 lines 5000 and 4000 and taxes 600 and 400 and invoice total.
the report should group invoices based on tax rate ,then sum the invoice line amount(<>'TAX') of that particular tax rate (12 ) and in the second line it should print for taxrate (10) sumof line amount..
Invoiceno. date ..... tax rate Sum(line amount) sum(tax amount) invoce total
100 2-2-2010 12 5000 600 11000
10 4000 400
101 2-3-2010 12 4000 560 7710
5 3000 150
0 2000
Can any one please tell me how this can be achieved either in sql /Rdf
Edited by: Jana on Mar 5, 2010 2:54 PM
Edited by: Jana on Mar 5, 2010 2:58 PM
Edited by: Jana on Mar 5, 2010 2:58 PM
Edited by: Jana on Mar 5, 2010 3:00 PM

Vat Reports are available in XL Reporter File Formats.
These files are located in the following folder of the Installation CD
Packages\Country-Specific Content\India"
To import them into XLreporter, please start the XLRreporter and then import them from the Xlreporter menu.
Check this SAP Note: 1074474 The XL reports provided by SAP for Indian Localisation
[https://websmp130.sap-ag.de/sap(bD1lbiZjPTAwMQ==)/bc/bsp/spn/smb_searchnotes/display.htm?note_langu=E&note_numm=1074474]

VAT Amount inventoried through MM pricing not TAXINN

Hi All,
My requirement is VAT amount should add into material during GRN through MM pricing only,no TAXINN
e.g Material Net price= 100
VAT=10
So during GRN BSX should debit at 110 and WRX should credit as 110.
Possibility that i have tried.
1. Created new condition for VAT and removed accrual and account key in Pricing procedure and also removed statstical.
So when i create a PO then VAT amount is added into Net Price which is not correct. Because my Material price is 100 not 110.
My client is not using any G/L account for VAT.
Kindly advise how to configure?
Regards
PR

System is working perfectly.
If you are not using accrual key for condition type, then the condition amount will be always calculated with net price.
Its a standard behavior.
You can see the net price as 110 and it will be as grey mode but if you see the condition tab in PO line item, here you can see the different amount for condition type.

In Taxinn Vat in Value not in %

Hi
there is requirement that vat should be display in value not in % while maintain FV11
how we can achieve this ?
I copy JVRD and make value and fix amount B and
then try to maintain Fv11,system giving error message maintain currency,but there is no column of currency in FV11 to maintain it?
Regards
Kailas Ugale
Edited by: kailasugale on May 13, 2011 2:37 PM

Hi
I did it,but system not accepting It
any solution
Regards
Kailas Ugale

VAT currency code in INVOIC02 idoc

Hi experts,
Anyone know if there are a field in the INVOIC02 idoc where I can specify the currency of the VAT.
If for example we are invoices in EUR and need to report tax in SEK, where in the idoc do I tell the system that my VAT amount are in SEK?
best regards,
Glenn Karlsson

according to the docu, the VAT amount is in document currency
http://help.sap.com/saphelp_di46c2/helpdata/EN/44/f50abfea3b11d194dc0000e83dd751/content.htm
I have heared about this requirement with VAT amount in local currency, however I have not seen a solution yet.
MAybe you should ask SAP directly (dont forget to post the answer here)

MIRO requirment

Hi gurus,
Process:
1) Raised service PO
2) Capture service entry sheet based on PO
3) we do MIRO based on service entry sheet
My client have requirment for VAT in MIRO. know when we r posting through MIRO the entries:
Vendor                 2187 Cr
GR/IR                    2000 Dr
services tax       103 (5.15%) Dr
CanteenVat          84 (4%) Dr
But the client want it as:
Vendor                 2103 Cr
Vat payable           84 Cr
GR/IR                    2000 Dr
services tax       103 (5.15%) Dr
Canteen Vat          84 (4%) Dr
is this case possible through MIRO transation

HI Pushkala,
                  As u said to maintain out put tax code. how is it possible to maintain in this case
                   Base amt              2000
                   Service tax            103 (5.15% on base price)
                   VAT                       84 (4% on Base price+Service tax)
For the above case we have to maintain a single tax code.
Regard's
Venky

Determine European customer by VAT reg. number [EU STCEG]

Hi!
I work in international company. For one of the countries VAT procedures, in order to know which VAT code to use, I need to know if it is a european customer.
I need to determine to which country the VAT reg. number belongs. For example, I take French VAT reg. number FR12345678, cut 2 first characters, and this way I know that it belongs to FR=FRANCE.
For each country code (FR for example) I can know if it is an european by field T005-XEGLD = X.
But, I can't find the way to determine always the country - because for Greece, for example, it doesn't work this way : Greece country code is GR and it's VAT reg. number is EL12345678
Is there a functiom module or logic to determine one of the following:
1) takes VAT reg. number and determines it's country
2) takes VAT reg. number and determines if it European
Please help,
Jana

Hello Janna,
VAT reg. numbers are always of the format : <ISO code><number>
From the ISO code, you will always get to know as the VAT number belongs to which country.
Example:
ES10000000Z -> ISO code ES belongs to Spain
IT09417760155 -> ISO code IT belongs to Italy.
This format is as per the legal requirement that VAT must always start with ISO code.
Hope this answer is helpful,
Regards,
Rimzhim.

VAT problem with Intercompany Billing

Hello Expert,
I have the following problem:
1) Company in France create a sales order with a delivery plant in Germany belonging to another company
2) Goods are delivered to the customer in France by Germany plant
3) Sap select VAT code using the delivery plant (in this case from Germany)
4) I fill the condition MWST. Country of origin: DE Country destination: FR. When I try to insert the VAT code in the condition, Sap give me only the vat code belonging to Germany(country of origin of the goods)
5) The company in France make the invoice to customer. The system gives an error because the Vat code is not valid for France
The problem is that Sap require a Vat code from the country of the delivering plant (in this example Germany) but when France create the invoice, the Vat is not valid.
Any suggestion?
Thanks.
Josy

Check whether the following notes helps you
a) Note 10560 - Tax determination for plant abroad
b) Note 63103 - Plants abroad (tax procedure)
c) Note 335816 - Plants abroad and tax jurisdiction code
G. Lakshmipathi

UK requirements on VAT

Similar Messages

Maybe you are looking for