What is intra-Community customer consignment with simplified VAT rules in SAP SD - Sales and Distribution?

SAP Term: intra-Community customer consignment with simplified VAT rules

• Component: SD

• Component Name: Sales and Distribution

• Description: A cross-border customer consignment process in which both the supplier and customer are located in a member state of the European Union EU, and the simplified VAT rules for consignment specified in the EU’s “2020 Quick Fixes” for intra-Community supplies Council Regulation [EU] 2018/1909 are applied. The cross-border transfer of goods is not deemed a taxable event, but is still relevant for the European Commission EC sales list and Intrastat reporting. Subsequently, the supplier performs a deemed intra-Community supply at the time the goods are sold that is, called off. The supplier does not require a VAT registration in the destination country as long all prerequisites for the simplified VAT treatment are fulfilled.

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• Key Concepts: 
  Intra-Community customer consignment with simplified VAT rules is a process in SAP Sales and Distribution (SD) that allows customers to purchase goods from a vendor in another EU country without having to pay VAT. The vendor will then be responsible for paying the VAT to the relevant tax authority. This process is beneficial for customers as it eliminates the need for them to pay VAT on their purchases. 
  
  How to use it: 
  In order to use this process, the customer must first register with the relevant tax authority in their country of residence. Once registered, they can then purchase goods from a vendor in another EU country without having to pay VAT. The vendor will then be responsible for paying the VAT to the relevant tax authority. 
  
  Tips & Tricks: 
  It is important to note that this process only applies to customers who are registered with the relevant tax authority in their country of residence. Additionally, it is important to ensure that all necessary paperwork is completed correctly in order for the process to be successful. 
  
  Related Information: 
  For more information on intra-Community customer consignment with simplified VAT rules, please refer to the SAP Help Portal or contact your local SAP representative.