INFORMATION NEEDED: TAX procedure settings
DETAIL: Our client operating in the beverage industry is moving towards a tax efficient central procurement model.
There are 16 local legal entities that are already live in SAP, each of them with a local country Tax procedure (TAXNL/TAXDE/etc).
The NewCo will centrally buy a list of selected materials and resell them through an intercompany transaction, to the local companies. As most of the products will be purchased and resold within the same country, NewCo will have VAT registrations in all the 16 countries and will have to charge local VAT of these countries. In order to work with this multiple VAT registration company, the plants abroad function will be used.
We are searching for any documentation available/inputs on VAT settings for the NewCo with respect to the use of Tax procedures. The alternatives are to work with extention of local tax procedures for countries or to implement a global tax procedure TAXEU. In this respect I would like to have your experience on advantages and disadvantages of using one vs. multiple tax procedures and related consequences on countries already live operating with their local tax procedures
If I have an A/P or A/R invoice posted with old tax codes (with old tax procedure) prior go-live and a correction of them (debit or credit note) will be posted after go-live, when new tax procedure is created and therefore new tax codes have to be used.....how do you manage this?
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