3006880 - Brexit: Information about the new TTX2 Access sequence and the new tax-determination cases

This KBA shares information about the new TTX2 Access sequence logic and the new tax-determination cases.

S/4 HANA Cloud

The new access sequence TTX2 is affecting and appearing because of the so called “ Northern Ireland Protocol”.  That means that as of end of transition period on 31.12.2020.

• Great Britain becomes a 3^rd country. Therefore Trade between Great Britain will be classified as import/export, and not as Intracommunity business anymore
• North Ireland is part of Great Britain, but will continue to trade with European Country as if it is a EU Member state, e.g. Intra community supply requirements will apply

That means that business transactions, involving goods movements having Great Britain as Departure or Destination  country and a departure plant or a ship-to-party in a Northern Ireland district need to have different tax determination.

Using the new access sequence you can apply and reflect the new logic, based on the Northern Ireland specifics. North Ireland is identified using a region code.

Then tax-determination shall be updated accordingly

• Case 1 Trading between Northern Ireland and GB mainland

a) Physical products → domestic or export tax, currently not aligned between GB and the EU

b) Services → domestic tax

• Case 2 Trading between Northern Ireland and the EU without VAT number

a) Physical products → domestic tax

b) Services → export tax

• Case 3 Trading between North Ireland and the EU with VAT number

a) Physical goods → export tax, intra-community supply

b) Services → export tax

• Case 4 Trading between Great Britain Mainland and EU a) Physical products → export tax b) Services → export tax

• Case 5 Trading between two EU Countries without VAT number a) Physical goods → domestic tax b) Services → domestic tax

• Case 6 Trading between two EU Countries with VAT number a) Physical goods → export tax, intra-community supply b) Services → export tax, intra-community supply

• Case 7 Trading between two Countries, no intra-community sale

a) Physical goods → export tax

b) Services → export tax

• Case 8 Trading within one Country

a) Physical goods → domestic tax

b) Services → domestic tax

The appropriate tax rates need to be updated as of being valid from 01.01.2021

Please refer to central note 2885225, out of there you will be guided to note 3005574 . in Note 3005574 you will find a very detailed pricing Cookbook as an attachment  “CookbookPricingandNorthernIrelandProtocol_CE.pdf”

cloud, ttx2, access sequence, tax-determination, brexit, GB, tax determination, EU , KBA , FI-LOC-FI-GB , Great Britain , How To