We have a supplier not registered for VAT so he doesn't charge us VAT on his invoice and there is no references to VAT registration in their master data. However, when we raise a purchase order or a new invoice, SAP ByDesign automatically adds VAT, which has lead to us overpaying them.
I raised a ticket with SAP to point out this is an incorrect system behaviour and I was asked to prove it is a legal requirement in the UK not to charge VAT if you are not VAT registered - or to claim back VAT you should not have been charged in the first place!
Has anyone else come across the issue and how did you solve the issue? I was looking at some tax configuration in External Tax Determination for Goods and Services but could not see how to add a specific supplier to exclude them from VAT calculations
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.