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General Principles Of VAT Determination For FIV Items

General Principles Of VAT Determination For FIV Items

Owned by Lango: Language and translation manager
Last updated: Sept 06, 2024Version comment
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Some FIV entries also contain VAT (described in the previous chapter), the rates of which depend on the flag Special regime VAT=A/N. The VAT rate for these items will be determined according to the following principle:

  • The system detects VAT Commercial Posting Group of a contract (e.g. TUZ)

  • Subsequently, it detects the flag of the Special VAT Mode subject and uses the value to find the second posting group to determine the VAT rate:

    • VAT Special Mode = N: VAT Posting Group Principal (DPHZAKL_S)

    • VAT Special Regime=A: VAT Posting Group Special Non-Tax Regime (BEZDPH_S) (Note: VAT should always be 0 in this case)

  • The system then calculates the VAT of the item.

Note: due to the small number of cases under the Special Mode VAT=A, the system will only calculate the financial settlement, but it will not be possible to create an FIV invoice (or it would be possible, but separate types of financial settlement with different standard sales codes must be established).

The description applies in general, but due to the non-use of the Special VAT regime in contracts with Financing with Services=Y, we assume that the combination of VAT Posting Group Contract + VAT Posting Group Principal will always apply for these contracts.