VAT on export ; subsequent change of tax.

[Former Member]

Hi all,

We need to invoice customers outside EU with a tax code that carries a zero % rate. However, if it turns out that our customer cannot show evidence that he is indeed an 'export' customer, we need to invoice domestic VAT.

Since this is something that cannot be known with full certainty at invoicing time, we need a way to adjust the VAT rate in the (rare) cases where it would turn out that we have invoiced export VAT where it should have been domestic.

I had a look to the possibilities in SAP and did not find a real confirmation of a proper solution. I was thinking of the following :

- Deferred tax : I am not convinced because this would mean that deferred tax items stay in the system for ever (I do not think this is the purpose).

- Tax adjustment (RFUMSV35) : this one looks quite promising but the litterature seems to consider this solution as only relevant in some very specific countries (Mexico ?)

Has anybody of you come accross the same problem ? Is one of the solutions that I am looking for relevant ? Am I missing something ? Is the question wrong for whatever reason ?

Any help will be highly appreciated.

Kind regards.

José Beghein

[dominic_holdstock · Accepted solution]

Hi,

The tax adjustment programm is only for countries that have deferred VAT and is only used when the Vat Rate changes.

For your situation you have to cancel the original incorrect invoice and then reissue it correctly.

Kind regards

[Former Member · Accepted solution]

Hi Dominic,

Although your answer is not spectacular, it is most probably the only one that is right.

Thanks a lot.

Kind regards.

José Beghein