Distance Sales

[Former Member]

"Distance Sales" is one of the normal EU Scenarios so we would like to understand if there is any standard SAP solution or workaround solution available.

The example of "Distance Sales" is as follows:

"A French distance seller applies French VAT, at 19.6% on all its sales to consumers in Belgium. Once the annual sales exceed the Belgian threshold of u20AC35,000 then the French distance seller is required to VAT register in Belgium and charge Belgium VAT at 21% thereafter on all its sales to Belgian purchasers. The Belgian VAT collected has to be paid over to the Belgian tax office."

Thanks in advance.

Regards,

SK

[former_member266852]

Hiii

For the same you can use defferred tax functionality.....create one defferred G/L account and post the vat, this will not post as actual vat payable with your 19.6%, Now moniter the G/L balance and if it is cross u20AC35,000 then transfer the value to revenue account and thereafter use VAT @ 21% and post the value in the same Deffered G/L and transferred it actual VAT payable G/L

Hope it will solve your problem

Regards

Shambhu Sarkar

[Former Member]

Hi Shambhu,

Thank you for reply.

So you also feel that there is no standard SAP solution avialable and the workaorund is also manual.

But the manual solution is also complex as we need to check if the threshold is reached for specific country for specific Seller and it is for all EU conutries and all sellers.

If we can automate it using some userexits or routines then it would be one time job. So I just wanted to know if anyone has implemented the solution for "Distance Sales" as it is normal EU practice.

Thank you for support.

Regards,

SK