As part of Brexit ,we are closely monitoring and working with our Local Product Managers in EU to make sure that its a smooth transition for our customers. For upcoming changes and impact on Business ByDesign please keep a track on this blog.
Please familiarize yourself with "Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community" (the so called "deal") published here:
https://eur-lex.europa.eu/content/news/Brexit-UK-withdrawal-from-the-eu.html
in particular:
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:12019W/TXT(02)
From
1st Jan 2021 following is the impact on customers and
following changes are already available your system
Northern Ireland Protocol (ref
https://www.gov.uk/government/publications/moving-excise-goods-as-freight-under-the-northern-ireland...
If you have customer and suppliers in GB and in particular Northern Ireland regions you will have to check and maintain correct postal codes. System will be using postal codes to determine if good shipment is happening to Northern Island Regions for Tax determinations.
System will have a new Tax Number Type
Northern Ireland Protocol: VAT Reg. No
which you as a customer will have to maintain incase you have business transactions in Northern Ireland regions. It will same similar validations as GB VAT Tax Number.
Tax Determination and Calculation
If order/invoice/transaction is from or to a customer/supplier who has address with country GB, system will further check postal codes to determine if it should be treated as EU or Export/Import Transaction.
UK Brexit Postponed Accounting VAT return
We will ship 4
new tax codes for scenarios of exempt , zero and reverse charge functionalities for 5% and 20% VAT rate
and
reporting will be based as follows
Box 1 – Include the VAT due in this period on imports accounted for through postponed VAT accounting;
Box 4 – Include the VAT reclaimed in this period on imports accounted for through postponed VAT accounting;
Box 7 – Include the total value of all imports of goods included on your online monthly statement, excluding any VAT
Invoice Numbering
Few countries have invoice number rules for transactions within EU for example Italy. If such a rule is maintained then system will not allow an invoice having both material and service because of
Northern Ireland Protocol impact.
Intrastat
A dedicated blog for Intrastat impact can be found at
https://blogs.sap.com/2020/11/25/end-of-transition-period-after-uk-leaving-the-eu-brexit-and-its-imp...
Upcoming changes
Following changes are under analysis and will be deployed in future.
- Impact on EC sales List - We are talking to Tax Authorities to understand the impact on EC sales list and will be deploying changes once its clear.
- Sale of Good to Private buyer in GB from EU - If you are selling beyond the threshold of 135 pounds then it needs to be reported in GB and your company needs a GB VAT registration number. Moreover company will have to collect standard sales tax and also file tax return in GB. This is also under analysis and we will inform you on upcoming changes
All updates can be found at
