2724128 - VAT is Levied for Buyer and Supplier Companies in Sweden

For intercompany scenario in Sweden, taxes are charged for charge-to companies. This is a legal requirement. But in the current SAP Business ByDesign system, for intercompany scenario, taxes are not levied within the intercompany.

SAP Business ByDesign

Prerequisite

You have maintained an entry in Enable Companies under Intercompany Supplier Invoice section. To view the entry you can navigate to Business Configuration work center -> Implementation Project -> Open Activity List -> Fine-Tune-> Direct Posting to Partner Companies -> Intercompany Supplier Invoice section -> Enable Companies.

Steps

1. Navigate to General Ledger work center and select Master Data.
2. Check if two set of books are assigned to the parent company and charge-to company.
3. Navigate to Supplier Invoicing work center and select Invoice Entry.
4. Choose New Invoice.
5. Create invoice with parent company as Supplier.
6. Enter charge-to company in the Bill-To field.
7. Post the invoice.
8. Navigate to General Ledger work center and select Journal Entries.
9. Enter the Source Document ID in search tab to view the journal entries.

Result

Tax lines are available for journal entry of parent company, but not for the journal entry of charge-to company.

This is a standard solution that no taxes are charged to the charge-to companies. But for Sweden, tax should be charged to charge-to company as per the new legal requirement. For more information please refer to https://www.skatteverket.se/omoss/varverksamhet/rapporterremissvarochskrivelser/skrivelser/arkiv/ar/2002/2002/skrivelser20021108.4.18e1b10334ebe8bc80005731.html?q=vidarefakturering+inom+koncernen .

Customer should not use intercompany functionality but must create an additional customer invoice.

Additional Information

Sweden Intercompany Account Posting - An Example

Step 1: Parent company receives invoice

Step 2: Parent company charging charge-to company (Create a customer invoice for charge-to company)

Step 3: Charge-to company receives an invoice from the parent company

VAT, Supplier Companies, Sweden, Invoice Entry, Supplier Invoice, Intercompany, , KBA , AP-ACC-GLO , Cross-Country Extensions , AP-ACC , Business ByDesign: Financial Accounting , AP-ACC-TAX , Tax Ledger Account , SRD-FIN-TAX , Tax Management , How To