Can GTS be used for calculating VAT?

[Former Member]

Hi,

I have a case with my client......We want GTS to calculate VAT for different countries(I know VAT is not there in US).....Can GTS be used for calculating VAT for different countries or is it possible only for the european community?

If yes then what needs to be done? Any customs enhancements or is it already there in GTS?

Hope you would help me,

Thanks,

Shruthi

[Former Member]

shruthi,

In SAP R/3, VAT and Foreign Trade / Intrastat were close cousins from a design perspective. That is, they both used invoices as the means to aggregate and transmit data to the EU authorities, VAT obviously for tax purposes, Intrastat for statistical declarations.

Intrastat can now be done in GTS with the Electronic Compliance Reporting. But, to my knowledge VAT is still done in ERP FI-AP/AR.

There are, however, some GTS processes with potential VAT impact, such as IPR/OPR movements into and out of bonded warehouses, but I have no idea how these might be realized with either GTS or ERP.

Hope this helps a little.

Regards,

Randy

[Former Member]

Hi Randy,

Thanks for your reply. I've seen somewhere that GTS has a special transaction tax engine and using that facility VAT can be calculated in European Union. I wasn't sure how and where this tax engine is in the GTS cockpit?

Thanks,

Shruthi

[Former Member]

Import VAT uses the dutiable value as tax basis.

Is anyone able to capture dutiable value from GTS, and use it to calculate import VAT in SAP R/3 or a bolt on system?

[Former Member]

Aaron -

By dutiable value for Import VAT do you mean the price for the material? If so, shouldn't this originate from your feeder system already?

[Former Member]

Dutiable value is the amount declared to the customs authority on import. It may or may not be the same amount as the material invoice amount in the feeder system, depending on the statuatory additions and or subtractions mandated by customs. So this dutiable value needs to be calculated by GTS to determine customs value. Dutiable value, plus duty is the base for calculating VAT.

[Former Member]

I believe if you have already calculated the Import VAT rate in your feeder system, you can transfer this rate to GTS and then calculate the VAT due on Import based off this and the dutiable value that you determine in GTS.

[Former Member]

GTS would have to sequence to calculate Import duty first, then VAT (based on the rate from feeder system)

VAT amount would have to be sent to feeder system from GTS, and then sent to tax bolt on system.

Would this require creating a document for this transaction for the financial postings in the feeder system?

[Former Member]

Aaron,

Actually I am not sure how the VAT amount (or any other data really) from the Customs document in GTS would be sent back to the feeder system. I don't believe there is any standard way to do this. A custom program might need to be created which would get the data from the GTS document and then transfer back to the feeder.

Does anyone have any experience with this?

[Former Member]

Thanks for your reply. Looks like another difficult question with a complicated "enhancement" as an answer.

[Former Member]

Did anyone find the Transaction Tax engine tab in GTS to calculate VAT?

[Former Member]

It is amazing that, given all the users of GTS, this VAT issue is still unsolved.