Pro-rata VAT Management

[EtienneJacquet]

Hello,

For certain French company, it is necessary to manage pro-rata VAT on purchases and fixed asset in order to declare only part of deductible VAT, and book the rest directly on expense. This requiere to manage a pro-rata rate and to be able to revise it from one year to the other.

Does this functionality is available in Cloud solution or is it planned? Without this functionality, or a workaround, it will not be possible to follow legal requierment for company having this need.

Kind regards,

Etienne

[Nadja_Medeiros · Accepted solution]

Hi Ettiene,

There are some discussions about bringing the functionality to Cloud but at this moment Pro Rata is NOT available in S4HC, and no delivery release identified so far.

KR

[Lucian]

Hi Etienne,

you can check the predelivered tax rates for France here :

https://rapid.sap.com/bp/assetsdownload/?publishedUrl=https%3A%2F%2Fsupport.sap.com%2Fcontent%2Fdam%...

The log term solution to this is time depended taxes, France should definitely be included in one of the future releases.

See more details about this here :

https://blogs.sap.com/?p=111

Regards,

Lucian

[EtienneJacquet]

Hi Lucian,

Thank you for this information. In fact, the topic is not related to tax code definition or time dependent taxes but to tax booking using pro-rata rate, in addition to the normal tax rate.

As an example, you can see this functionnality in S/4HANA (not public cloud): https://help.sap.com/viewer/c30311a28bc24fe08bd47eafbf3fd930/1909.000/en-US/4ae59f0181071134e1000000...

The question is to know if this functionnality will be available in the cloud or if there is a workaround to comply with this requierement.

Kind regards,

Etienne