Understanding Supply and Install in SAP
La TVA dans SAP ressemble souvent à un labyrinthe d'exceptions, de solutions de contournement et de corrections manuelles sans fin. Notre série de vidéos expose les pièges les plus courants.
What is Supply and Install?
Where a non-established supplier sells goods to a customer in another EU Member State, and those goods require installation in order for the customer to use them, this is referred to as a supply and install.
This is a mixed supply, consisting of both:
-
A goods element
-
A service element (installation)
The place of taxation for supply and install goods is the Member State in which those goods are installed. Ownership of the goods transfers to the customer only once the installation has been completed by the supplier.
Example
If we look at a typical scenario, a Belgian supplier delivers goods to a customer in another EU Member State and must also arrange for the installation of those goods. Once the installation is complete, the sale to the customer takes place. Under normal circumstances, this would involve a movement of goods from Belgium to another EU Member State, followed by a domestic sale.
The rules for supply and install differ. The place of taxation is where the goods are installed. As a result, there is no intra-community dispatch from the supplier and no EC Sales List reporting. Instead, once ownership transfers following installation, the transaction is treated as a domestic sale.
In summary:
- No intra-community dispatch
- No EC Sales List reporting
- A domestic sale in the country of installation
Watch the Video: Supply and Install Explained
We explain the VAT treatment and implementation of Supply and Install
Simplification and Complexities
Simplification
Some Member States have introduced a simplification allowing the use of the extended reverse charge. This means:
- The supplier does not charge output VAT
- The customer accounts for both output and input VAT
- The supplier may not need to be VAT registered in the installation country (if no other obligations exist)
Complexities
From the supplier’s perspective, understanding the correct treatment across jurisdictions can be difficult. It is necessary to determine:
- Whether the transaction is a supply of goods or services
- Whether VAT should be applied or a reverse charge applies
Where the transaction is treated as a service, the general rule applies. This means the place of taxation could be where the customer is established, which may differ from the Member State in which the goods are installed. This makes supply and install a complex area.
How Meridian Tax Technology Manages Supply and Install in SAP
Understanding the VAT treatment is only part of the challenge. Implementing this within SAP introduces further complexity.
Download the Guide to Supply and Install in SAP
Our Guide explains what is Supply and Install in SAP and how to effectively manage the process.
- What is Supply and Install
- Considerations when using Supply and Install
- Implementing Supply and Install in SAP
- How Meridian enables you to automate the process
Known VAT Issues in SAP
Il existe de nombreux problèmes de TVA connus dans SAP, notamment les flux de fourniture et d'installation, l'autoliquidation nationale, les flux de consignation transfrontaliers, les régions à TVA spéciale. La fabrication à façon, et bien d'autres encore. Nos experts en technologie fiscale et en conformité à la TVA sont à votre disposition pour discuter de ces défis avec vous et vous conseiller sur la manière d'automatiser de nombreux processus avec la technologie fiscale.