Hello All,
customers using third party delivery between two EU companies in different countries are mostly facing the same problem: the tax code is not correctly found in the sales orders and has to be maintained manually. Some of the customers are doing more than 80% of their business with third party deliveries, so that is quiet anoying.
Here is an example process:
1) Own company located in GB. VAT registration for GB exists; no registration in DE.
2) Customers located in GB. In my example one of the customers has a VAT registration number (#772), the other has none (#771)
3) We order in DE; the delivery is done from DE directly to the customer. The supplier has a VAT registration number in DE and is not registered in GB.
4) In the customer master data tax examptions are setup for country DE (at #771 and #772) so that no VAT has to be paid in DE.
Attached you find the decision files made by the ByD tax engine. Depending on an existing GB VAT registration the tax engine comes to different results.
In a global view I would say: the VAT has to be paid in the country where the delivery endpoint is (in this case GB). As our company is registered in GB and the delivery endpoint is in GB there is always VAT to be paid in GB.
Astonishingly the tax engine comes to the conclusion (if a VAT registration number exists with the respective customer) that the VAT has to be paid in Germany where none of the companies (our company, the customer) is registered.
If no VAT registration number is set up at the customer master data, the tax engine decides to set the tax country to GB.
I know there are more complex scenarios than this, but I think this is the mostly used.
TAX GURUS - please help! What can be done to force ByD to use the correct tax country (eg GB) and tax code?
Kind regards,
Klaus Hoffmann
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