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Co-author: waldemar.kramer
In this blog, we will see how Tax Abroad influences the roles and responsibilities of Intrastat reporting.
Tax Abroad applies when a company is registered for VAT in another country, even without a physical presence.
By law, companies doing trade above a certain minimum may be required to register for VAT in another country even when not physically present.
Plant Abroad/Foreign Plant requires Tax Abroad. For example, the delivering company in intercompany sales requires Tax Abroad if it delivers goods from a Plant Abroad/Foreign Plant.
The responsibilities for Intrastat reporting are determined by the goods movements and the Company's location. The relevant location is determined by the tax location of the Company, not its physical location. Therefore, tax registration abroad will influence the roles and responsibilities described in earlier blogs on this topic.
We have previously covered the following:
Intrastat 101 – SAP S/4HANA for international trade and SAP GTS, edition for SAP HANA
Intrastat 201 – Scenario-Specific Roles and Responsibilities
Intrastat 301 – Intrastat and Plants Abroad/Foreign Plant
Reading those blogs before embarking on this blog will make sense.
We must cover some terminology before examining how Tax Abroad influences Intrastat reporting.
Country of Delivering Plant
The country where delivering plant is located.
Technical name: VBRP-ALAND in IV and F2.
Country of Ship-to-Party
The country of the party that receives goods.
Technical Names: VBRP-LLAND_AUFT in IV and VBRK-LAND1 in F2.
Country of Delivering Company Tax Registration in IV
The country of the VAT registration of the delivering company in IV.
Technical name: VBRK-LANDTX in IV.
Country of Selling Company Tax Registration in IV
The country of the VAT registration of the selling company in IV.
Technical name: VBRK-STCEG_L in F2.
Country of Selling Company Tax Registration in F2
The country of the VAT registration of the selling company in F2.
Technical name: VBRK-LANDTX in F2.
Country of Customer Tax Registration in F2
The country of the VAT registration of the customer in F2.
Technical name: VBRK-STCEG_L in F2
Country of Taxes in F2
The country where the taxes are applied in F2.
Technical name: VBRK-STCEG_L in F2
Taxable Person
A taxable person is generally a business, sole trader, or professional.
With this status, they are responsible for charging, collecting, and paying VAT to the tax authorities and documenting it in a VAT return.
An F2 invoice represents a B2B transaction if the field VBRK-STCEG is not "initial."
An F2 invoice represents a B2C transaction if the field VBRK-STCEG is "initial."
Therefore the customer is a taxable person if the value of VBRK-STCEG is not "initial" in Customer Invoice.
Intra-Community Supply (ICS)
An ICS refers to the supply of goods by a business in one member state to a business in another member state of the EU.
One-Stop-Shop (OSS)
The One-Stop-Shop refers to the central processing of all VAT reporting and payment obligations arising from trade in goods with consumers in the EU in a single tax return. Online sellers, including online marketplaces/platforms, can register in one EU Member State , and this is valid for the declaration and payment of VAT on all distance sales of goods and cross-border supplies of services to customers within the EU.
Abbreviations used above and later in this blog:
We will examine 9 different scenarios and how they influence Intrastat reporting obligations.
We begin by looking at a prevalent scenario with Intra-Community supply. It is important to remember that the physical locations of the Delivering Company, the Selling Company, and the Customer are irrelevant in determining Intrastat reporting obligations.
In a scenario where the Selling Company is Tax registered in Country B, the B2B Customer is located in Country B, but the Delivering Company is Tax registered in Country A, we have the following obligations.
The Delivering Company reports Dispatch in Country A.
The Selling Company reports Arrival in Country B.
In Scenario 1B, we have a similar localization of tax registrations for Selling and Delivering Companies. The only difference is that the customer, this time is a consumer.
Reporting obligations do not change. The Delivering Company reports Dispatch in Country A and the Selling Company Arrival in Country B.
In this scenario, the Selling Company performs an Intra-Community Supply.
The Selling Company reports Dispatch in Country A. Customer reports Arrival in Country B.
In this scenario, the Selling Company performs a domestic business-to-business transaction; however, the Customer performs an Intra-Community supply by shipping the goods abroad.
In this case, the Customer (Tax registered in Country A) must report Dispatch in Country A, and the Other B2B Customer (Tax registered in Country B) reports Arrival in Country B.
The Other Customer could be the Ship-to-Party. It can, however, also be a completely different Customer.
Let us see what happens when the Selling Company performs a business-to-consumer sale below threshold limits.
In this case, nobody reports arrival in Country B. The Selling Company, however, still reports Dispatch in Country A.
In a scenario where the Selling Company performs a business-to-consumer sale above threshold limits, the Selling Company is responsible for both Dispatch reporting in Country A and reporting of Arrival in Country B.
Please note that this scenario is not supported by SAP.
In Scenario 6, the selling company performs business-to-consumer distance selling using the one-stop-shop concept.
The selling company reports Dispatch in Country A. Nobody reports Arrival in Country B.
Please note that Scenario 6 is not supported in SAP S/4HANA Public edition.
In case of the Selling Company performs an EU Triangulation Deal as described below, the Delivering Company will be responsible for Dispatch reporting in Country A, and the Customer will be responsible for reporting Arrival in Country B.
Please note the deviations for France and Italy.
In a situation where the customer performs an EU triangulation deal, the responsibilities are:
The Selling Company reports Dispatch in Country A. The Other B2B customer reports Arrival in Country B.
We have summarized the 9 scenarios in the overview below.
The key takeaway from this blog is that it is the location of the Tax registrations, and not the physical localizations of the business partners involved, that, combined with the goods movement, determines the Intrastat reporting obligations.
In this blog, we will see how Tax Abroad influences the roles and responsibilities of Intrastat reporting.
Tax Abroad applies when a company is registered for VAT in another country, even without a physical presence.
By law, companies doing trade above a certain minimum may be required to register for VAT in another country even when not physically present.
Plant Abroad/Foreign Plant requires Tax Abroad. For example, the delivering company in intercompany sales requires Tax Abroad if it delivers goods from a Plant Abroad/Foreign Plant.
The responsibilities for Intrastat reporting are determined by the goods movements and the Company's location. The relevant location is determined by the tax location of the Company, not its physical location. Therefore, tax registration abroad will influence the roles and responsibilities described in earlier blogs on this topic.
We have previously covered the following:
Intrastat 101 – SAP S/4HANA for international trade and SAP GTS, edition for SAP HANA
Intrastat 201 – Scenario-Specific Roles and Responsibilities
Intrastat 301 – Intrastat and Plants Abroad/Foreign Plant
Reading those blogs before embarking on this blog will make sense.
We must cover some terminology before examining how Tax Abroad influences Intrastat reporting.
Terminology
Country of Delivering Plant
The country where delivering plant is located.
Technical name: VBRP-ALAND in IV and F2.
Country of Ship-to-Party
The country of the party that receives goods.
Technical Names: VBRP-LLAND_AUFT in IV and VBRK-LAND1 in F2.
Country of Delivering Company Tax Registration in IV
The country of the VAT registration of the delivering company in IV.
Technical name: VBRK-LANDTX in IV.
Country of Selling Company Tax Registration in IV
The country of the VAT registration of the selling company in IV.
Technical name: VBRK-STCEG_L in F2.
Country of Selling Company Tax Registration in F2
The country of the VAT registration of the selling company in F2.
Technical name: VBRK-LANDTX in F2.
Country of Customer Tax Registration in F2
The country of the VAT registration of the customer in F2.
Technical name: VBRK-STCEG_L in F2
Country of Taxes in F2
The country where the taxes are applied in F2.
Technical name: VBRK-STCEG_L in F2
Taxable Person
A taxable person is generally a business, sole trader, or professional.
With this status, they are responsible for charging, collecting, and paying VAT to the tax authorities and documenting it in a VAT return.
An F2 invoice represents a B2B transaction if the field VBRK-STCEG is not "initial."
An F2 invoice represents a B2C transaction if the field VBRK-STCEG is "initial."
Therefore the customer is a taxable person if the value of VBRK-STCEG is not "initial" in Customer Invoice.
Intra-Community Supply (ICS)
An ICS refers to the supply of goods by a business in one member state to a business in another member state of the EU.
One-Stop-Shop (OSS)
The One-Stop-Shop refers to the central processing of all VAT reporting and payment obligations arising from trade in goods with consumers in the EU in a single tax return. Online sellers, including online marketplaces/platforms, can register in one EU Member State , and this is valid for the declaration and payment of VAT on all distance sales of goods and cross-border supplies of services to customers within the EU.
Abbreviations used above and later in this blog:
| Del = Delivery |
| IV = Intercompany invoice |
| F2 = Delivery Related Customer Invoice |
| ICS = Intra-Community Supply |
| OSS = One-Stop-Shop |
| B2B = Business to Business |
| B2C = Business to Consumer |
We will examine 9 different scenarios and how they influence Intrastat reporting obligations.
Scenario 1A - Delivering Company Performs Intra-Community Supply, Selling Company Performs B2B Transaction in Country of Ship-to-Party
We begin by looking at a prevalent scenario with Intra-Community supply. It is important to remember that the physical locations of the Delivering Company, the Selling Company, and the Customer are irrelevant in determining Intrastat reporting obligations.
In a scenario where the Selling Company is Tax registered in Country B, the B2B Customer is located in Country B, but the Delivering Company is Tax registered in Country A, we have the following obligations.
The Delivering Company reports Dispatch in Country A.
The Selling Company reports Arrival in Country B.
Scenario 1B - Delivering Company Performs Intra-Community Supply, Selling Company Performs B2C Transaction in Country of Ship-to-Party
In Scenario 1B, we have a similar localization of tax registrations for Selling and Delivering Companies. The only difference is that the customer, this time is a consumer.
Reporting obligations do not change. The Delivering Company reports Dispatch in Country A and the Selling Company Arrival in Country B.
Scenario 2 – Selling Company Performs Intra-Community Supply
In this scenario, the Selling Company performs an Intra-Community Supply.
The Selling Company reports Dispatch in Country A. Customer reports Arrival in Country B.
Scenario 3 – Selling Company Performs Domestic B2B Transaction in Country of Delivering Plant, Customer Performs Intra-Community Supply
In this scenario, the Selling Company performs a domestic business-to-business transaction; however, the Customer performs an Intra-Community supply by shipping the goods abroad.
In this case, the Customer (Tax registered in Country A) must report Dispatch in Country A, and the Other B2B Customer (Tax registered in Country B) reports Arrival in Country B.
The Other Customer could be the Ship-to-Party. It can, however, also be a completely different Customer.
Scenario 4 – Selling Company Performs B2C Distance Selling Below Threshold Limits
Let us see what happens when the Selling Company performs a business-to-consumer sale below threshold limits.
In this case, nobody reports arrival in Country B. The Selling Company, however, still reports Dispatch in Country A.
Scenario 5 – Selling Company Performs B2C Distance Selling Above Threshold Limits
In a scenario where the Selling Company performs a business-to-consumer sale above threshold limits, the Selling Company is responsible for both Dispatch reporting in Country A and reporting of Arrival in Country B.
Please note that this scenario is not supported by SAP.
Scenario 6 – Selling Company Performs B2C Distance Selling Above Threshold Limits Using One-Stop-Shop
In Scenario 6, the selling company performs business-to-consumer distance selling using the one-stop-shop concept.
The selling company reports Dispatch in Country A. Nobody reports Arrival in Country B.
Please note that Scenario 6 is not supported in SAP S/4HANA Public edition.
Scenario 7 – Selling Company Performs EU Triangulation Deal
In case of the Selling Company performs an EU Triangulation Deal as described below, the Delivering Company will be responsible for Dispatch reporting in Country A, and the Customer will be responsible for reporting Arrival in Country B.
Please note the deviations for France and Italy.
Scenario 8 – Customer Performs EU Triangulation Deal
In a situation where the customer performs an EU triangulation deal, the responsibilities are:
The Selling Company reports Dispatch in Country A. The Other B2B customer reports Arrival in Country B.
Overview – Intrastat Reporting Tax Abroad in Intercompany Sales
We have summarized the 9 scenarios in the overview below.
Conclusions
The key takeaway from this blog is that it is the location of the Tax registrations, and not the physical localizations of the business partners involved, that, combined with the goods movement, determines the Intrastat reporting obligations.
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