Czech Republic VAT Reverse Charge

[Former Member]

Hi Gurus,

     We have a project business requirement to enable Company code 111 to be
compliant with the Czech VAT law for the Czech Republic. Under CZ VAT
regime, there are two VAT rate which is Standard Tax 21% and Czech
Reverse Charge 0%.

     In our company, Czech VAT Reverse Charge applies if below conditions
are meet for Sales order line items.

1) Shipped from VMI storage location from CZ and Ship to Customer in CZ.

2) Material with harmonized code determine via Material master foreign
trade export-Commodity Code/Import Code

3) Exceed threshold of 100,000 CZK. Our existing pricing condition is
in USD therefore need to use exchange rate type M to convert from USD
to CZK.

May I know is there any standard SAP implementation guide line for
Czech Republic VAT Reverse Charge to resolve acording to above
conditions?

Thanks.

Regards,
Scott

[Lakshmipathi · Accepted solution]

Have a look at the following note:-

• Note 2115172 - Legal Change CZ Reverse charge for new commodities VAT law for 2015

G. Lakshmipathi

[phanikumar_v3]

On Point 1: yes this can be achieved  through standard settings for both at the supply plant & Customer will have their own Tax classifications & regions(Pl see tax determination rules of SAP)

Point-2: Please add the Chapter ID/Commodity code/Material as a condition in your Tax determination condition tables.

Point-3: this 0% is applicable only if the Document value exceeds 100,000CZK-Here you can try either to train the user to make the TAX to 0% (It is not a good option of controlling TAX with manual support)-Else you can have separate routine at Alternative formula for condition type can make this value to 0%)

Hope this helps.

Phanikumar