SAP Localization Hub, Tax Service – 1708 Release Update

What’s new in the SAP Localization Hub, Tax Service

The functional scope of the Tax Service has been extended with quite some additional enhancements to cover complex EU scenarios of indirect taxation processes for Belgium, Germany, Poland, Switzerland and the United Kingdom. Some examples are:

EU Supply of Services

This scenario describes how rules for indirect tax determination for the supply of services are applied in the Tax Service. In the B2B scenario it is important to determine where the buyer is established and what kind of service is consumed in order to trigger the correct tax calculation. Whereas in the B2C scenario the place of taxation is determined where the supplier has established his or her business.

VAT Registration Number

A set of rules and additional parameters have been added to the Tax Service to compute tax for a company or business partners with or without VAT establishments in multiple EU countries.

Call-Off Stock & Consignment Stock

This scenario describes how the Tax Service calculates taxes in the case of goods transfer as call-off stock or consignment stock. For the determination of the VAT calculation it is important to differentiate who controls access and who is in use of the stock.

Distance Selling

This scenario describes how the Tax Service determines indirect tax Intra-EU sales transactions with a Consumer. This is relevant for when the consumer is in an EU country other than country from which the goods are sold.

Documentation

The updated Tax Service documentation as well as a detailed scenario documentation are now available on the Help Portal.

In addition to the enhanced scope of the tax service new UIs have been built to visualize the API of the Tax Service with the Simulation UI and the Master Data Configuration in a user friendly and comprehensive view. More details are available in the Tax Service Documentation.

What is coming next?

New VAT for Kingdom of Saudi Arabia and United Arabic Emirates

Partner integration framework for Brazil

For more information please contact: saplocalizationhub@sap.com

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