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Former Member
Mar 14, 2010 at 06:59 PM

SAP Best Practices for Fiscal Representative Scenraio

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Hello Friends,

Need your inputs to understand the SAP best practices to implement the solution . Currently we are doing the implentation for one of european client. During the requirement, we identified the unique requirement which is common in european business, and the requirement is billing to fiscal representative and also from fiscal representative. The representation of the process is -

A Company not established in a countries where company needs to engage a transactions subject to the local VAT such as: building services, storage, events, imports carried out in this state in the name of main company and any operation of "purchase/resale" carried out in this state. To do such transactions, company obligation to register for VAT in the concerned state or country with a local VAT number.

To obtain this, Company order appoints a Fiscal Representative who:

a. Ensures Company for tax legislation and allows to answer the obligations as regards to local VAT .

b. Deals with the VAT declarations including the requests for refunding and Intrastate.

c. Manages the registration near the tax authorities, Company VAT Balance, the follow-up of the payments of VAT .

d. Takes care for any correspondence with the local tax authorities, including in the event of tax control.

These representatives are also responsible for billing intercompany customers and also final customers for the local tax obligations.

Business Requirement -

Client need to setup a fiscal representatives in ECC wherever applicable other than company code country

These representatives having a separate VAT number per country

These representatives do operations on behalf of main company code in the countries

Example scenario -

Business Case 1

There are two company codes, A100 in ITALY and A200 in Switzerland

A200 appoints a fiscal representative in Italy for Italian operations

A100 supply the goods to A200 but the intercompany bill is raised between A100 to A200's fiscal representative in Italy.

By our internal observation and the ground work, we confirm that the SAP Plant abroad functionality can be fulfilled for this requirement. However, our customer wants to understand how the other clients are doing and the best practices.

Thanks in advance to share your inputs

Best Regards,

Goutham