Localization and legal changes update: Goods and Service tax for India (GST) & Immediate Supply of Information (SII)
When SAP provides a country version, we support customers to run business with SAP software according to international standards and local requirements. SAP country version are localized, delivered and maintained based on a selected scope by SAP.
- Functional Localization: Adapting the solution to the common legal requirements and best business practices of a country and in doing so supporting our customers to be legally compliant.
- Internationalization: Enabling the solution, so that it can be used globally by supporting Unicode, different currencies, different time zones and calendars, etc.
- Translation: Enabling the solution with translation into supported languages and can therefore be used globally
SAP is continuously evaluating the changes and discussing with our legal counsel. Based on these decisions SAP is updating India GST and Spain SII with legal changes passed by each government.
Thus, as of today 19 SAP ByD country version are offered to market and many more to come. Check high-level scope details per country at sap.com
Goods and Service tax for India (GST)
Goods and Services Tax (GST) is a proposed system of indirect taxation in India, merging most of the existing taxes into single system of taxation. It was introduced by the Indian Constitution (One Hundred and First Amendment) Act 2016. GST will come into effect as on July 1st 2017.
SAP has already communicated the roadmap for the release of GST changes in ByD.
– This information is based on legislation and regulations which is subject to change at any time by the respective authorities and are therefore not binding. The information will be updated if necessary.
– The new rules are not out as notifications yet. Customers are advised to take legal opinion before going live in the productive environment. The timelines mentioned are indicative only.
– Reporting to ASP and GSP is not in scope – intention is to provide an Excel download which can then be handled by the customer via the ASP/GSP of their choice
Business Impact: the introduction of the Goods and Service Tax will replace the existing indirect taxes in India.
- Destination based taxation
- Dual Administration – Centre and state
– State wise determination of taxable person – no more centralized registration
– Seamless credit amongst goods and services
The following scenarios are impacted: Procure to Pay; Order to Cash; Financials; Forms and Master Data
Reference SAP Solution is based on information available about GST as in link http://www.cbec.gov.in/htdocs-cbec/gst
Release date: The solution is delivered in 1705 HFC04. Customers that scoped India on their tenants may begin testing the same starting from June 19th, 2017. Further Details: Platform for collaboration, learning and development with respect to GST and support by SAP, access through the link. If you don’t have still access to this group, please contact. firstname.lastname@example.org
Immediate Supply of Information (SII) for Spain
The Spanish Tax Authorities have announced the incorporation in 2017 of a new tax control system called “Immediate Supply of Information” (Suministro Inmediato de Información –SII). By this new system, certain taxpayers will have to provide the data related to invoices, issued and received, to the tax authorities, within a four-day timeframe (exceptionally eight days in year 2017) as of the moment they issue or receive an invoice. This information is based on legislation and regulations which could be subject to change at any time by the respective authorities and are therefore not binding.
The new system is independent of the type of activity carried out or the VAT status as an established or non-established entity and will be compulsory for all taxpayers which: • Form part of a VAT group or • Are considered a large size company (Turnover of more than 6.010.121,04 €) or • Are applying the monthly refund scheme (REDEME), in terms of SAP executing Tax re-turn form 340 (RIFDESM340). On a voluntary basis, any other company can also apply for it. It is important to emphasize that the data to be provided is not the invoice itself but rather certain information on each invoice, which will allow the tax authorities preparing the VAT books of these taxpayers. Immediate and continuous supply of information to the Tax Agency of the issued and received invoices through “web service”. Reference RD 596/2016 approved SII (http://www.boe.es/buscar/doc.php?id=BOE-A-2016-11575) . SII will come into force on July 1, 2017. Order HFP/417/2017 regulates the normative and technical specifications of SII has been published the 15th of May (http://www.boe.es/buscar/act.php?id=BOE-A-2017-5312). Details of the registers can be found on the website of the AEAT: http://www.agenciatributaria.es/AEAT.desarrolladores/SII.html. Expected Solution A solution is delivered in 1705 HFC04. Customer may begin testing the same starting from June 19th, 2017. Further Information
A second session is planned on June 28, 2017 at 11.00 CET on SII with demo the solution of electronically submitting the VAT Books to AEAT. For participation, please contact: email@example.com
If you are interested to check the first recorded webinar check at SAP JAM Localization Group.
Intended for SAP ByD customers and partners only. For access you can connect with any SAP employee you are working with or simply send an email to firstname.lastname@example.org