STO in Sourcing and Procurement

[former_member114268]

Dear Team,

              I want to know Implication of taxes within country and out of country for intra company and inter company STO transfer in sourcing and procurement.

kindly guide on same.

Thanks & Regards.

[Dennis_Suck85]

Hello,

See the attached summary on the subject of intra and inter company, as well as the corresponding Fiori apps. As I don't know how you currently work or what exactly you want to do, I have only described this superficially.

1.  intra-company STO (within the same country or company)

- Domestic: No VAT on transfers within the same company. No tax is due as long as the transfer remains within the same legal entity.

- Cross-border: For cross-border transfers within the same company, import VAT and customs duties must be taken into account. The receiving plant pays import VAT and customs duties must be processed via SAP GTS.

1.  inter-company STO (between different legal entities)

- Domestic: For transfers between different legal entities within the same country, VAT is charged as it is a sales. The sending company charges VAT, the receiving company deducts input VAT.

- Cross-border: For international inter-company transfers, export duties and import VAT must be taken into account. Customs clearance is carried out via SAP GTS and VAT is calculated according to local tax laws.

Important points:

- Transfer prices must be configured correctly for inter-company transactions.

- Customs duties, import VAT and tax regulations must be observed for cross-border transfers.

How to proceed:

- Check and adjust material master and tax code.

- Configure tax key and account determination for taxes.

- Set up transfer prices for inter-company transactions.

- Set up customs clearance for cross-border transfers.

- Check purchase orders and goods receipts and tax calculation.

- Use tax reports and VAT returns to check tax calculations.

Summary of the relevant Fiori apps:

- Manage Material Master - Manage material master data and tax codes.

- Manage Tax Codes - Manage tax codes and tax keys.

- Create Stock Transport Order and Monitor Stock Transport Orders - Create and monitor STOs.

- Post Goods Receipt - Post goods receipt and check tax calculations.

- Monitor Customs Declaration and Create Export Declarations - Customs clearance for cross-border transfers.

- Configure Intercompany Billing and Manage Billing Documents - Transfer pricing management for inter-company transactions.

- Display Tax Returns and Display Sales Tax Reports - View tax returns and VAT reports.

Best regards 

Dennis