As you are all aware Brexit is looming on the horizon and the only constant is the uncertainty.
United Kingdom (UK) left the EU on the 31st January 2020 and entered into a transition period. This transition period will end on the 31st December 2020. As of the 1st January 2021 the UK tax authority have introduced Postponed Accounting for all imports into the UK. More information can be found at:
SAP have a task force and are engaged with the relevant authorities in the UK and EU to ensure a smooth end to the transition period.
As a first step SAP would like to invite you to review the available solution for Time Dependent Tax (TDT) and how the solution gives you full control for creation and change of tax codes, including the description and tax rate, by allowing you to add validity periods to your existing tax codes.
For changes due to the Brexit decision, the precondition is Time Dependent Taxes (TDT) for S/4HANA Cloud customers. Therefore it is important to plan the TDT migration for GB/ United Kingdom as per your running projects activities. TDT for GB/ United Kingdom was delivered in 2005. In case the country was activated before the TDT release indicated, a migration in Q and in P systems is required to enable the functionality.
Further information on Brexit will follow also please check our central Brexit note https://launchpad.support.sap.com/#/notes/2885225
Please note also that for countries where TDT is enabled, SAP will not deliver future legal changes, neither will run expert configuration for the introduction of new tax codes.
On product roadmap slide for localization and languages, you can drill down and validate the planned TDT enablement per country.
We share the below information that informs about the solution and encourage your team to plan and execute the migrations.
Getting Started & Solution Assets
- Here is the link to TDT help page and how it could help you: TDT help page
- Among other materials here, we have two how-to videos that may help you, one showing how to migrate to TDT, and another showing you a use case of how it works in your system.
- TDT Video Using Time-Dependent Taxes SAP S/4HANA Cloud 1908
- Activating TDT Video Activating Time-Dependent Taxes SAP S/4HANA Cloud 1908
- Please check on the SAP Notes that contain important information about TDT before you migrate.
- SAP Note 2819322: Time Dependent Tax impact on the usage of MM Web Services for posting of invoices
- SAP Note 2818970: Web Service JournalEntryCreateRequestConfirmation_In and Time Dependent Tax
- SAP Note 2809073: The Purchasing Info Record was enhanced by the tax calculation valid from date for the Time Dependent Tax Calculation
Please refer to SAP Note 2999933 to help with Brexit preparation.
In case of issues during the migration please open a ticket in component FI-GL-GL-F.
Brexit Transition and Beyond
Dec 8 , 2020, 9 am & 5 pm CET
These sessions are dedicated to all those who do business with the UK. They will primarily cover the areas finance, logistics and GTS. You can select whichever time is most suitable for you. Bear in mind the times listed are Central European Time.
Join this webcast to learn where to find relevant information around Brexit and gain insights into areas affected by Brexit – Configuration, Master Data, Transactions and Reporting.
We will keep this blog and the above mentioned SAP note updated for next relevant steps.