Tax and SAP add-ons

Services and Products

Activating plants abroad functionality

Multinationals can activate SAP's Plants Abroad functionality to handle tax issues for companies with VAT registration numbers in more than one country.

The SAP functionality enables the use of various tax reporting countries within one company code, the correct company VAT registration number for the sales invoices, the proper VAT treatment for cross-border stock transfers and consignment transactions, and more accessible VAT and Intrastat reporting.

When should plants abroad be used?

  • If a company has plant/storage/warehouse locations in multiple EU countries and the company is VAT registered in these plant/storage/warehouse location countries
  • If there are intra-company transfers of goods between plant/storage/warehouse locations or in the case of consignment stocks in multiple EU countries
  • If the countries where the company is VAT registered are using different 'tax currencies'.

We have developed an SAP add-on solution to activate SAP's Plants Abroad functionality in a cost-efficient way and optimize future maintenance efforts. This solution is based on tables and program logic, with no direct impact on the MWST condition.

Via a function module in the sales order and the invoice, the add-on influences the starting parameters for determining the MWST condition type. The VAT determination parameters are set right before MWST is accessed. Maintenance of the MWST condition will become less complicated, and in the tables, only exceptions are maintained.