What is intra-Community customer consignment without simplified VAT rules in SAP SD - Sales and Distribution?

SAP Term: intra-Community customer consignment without 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, but the simplified VAT rules for consignment specified in the EU’s “2020 Quick Fixes” Council Regulation [EU] 2018/1909 are not applied. The cross-border transfer of goods is deemed an intra-Community supply in the departure country and a taxable intra-Community acquisition in the destination country, for which the supplier requires a VAT registration in the destination country. Subsequently, the supplier performs a VAT-taxable domestic supply at the time the goods are sold that is, called off.

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• Key Concepts: 
  Intra-Community customer consignment without simplified VAT rules is a type of consignment process in SAP Sales and Distribution (SD) that involves the transfer of goods from one EU member state to another without the application of simplified VAT rules. This type of consignment is used when goods are being transferred between two EU member states and the seller does not want to apply the simplified VAT rules. 
  
  How to use it: 
  In order to use this type of consignment, the seller must first set up a customer master record in SAP SD for the buyer. The customer master record must include the country code of the buyer, as well as the VAT registration number. The seller must also set up a sales document for the consignment, which must include the country code of the buyer and the VAT registration number. 
  
  Tips & Tricks: 
  When setting up a customer master record for an intra-Community customer consignment without simplified VAT rules, it is important to ensure that all relevant information is included in the record. This includes the country code of the buyer, as well as their VAT registration number. It is also important to ensure that all relevant information is included in the sales document for the consignment. 
  
  Related Information: 
  For more information on intra-Community customer consignment without simplified VAT rules, please refer to SAP Help documentation on Sales and Distribution (SD). Additionally, you can contact your local SAP representative for more information on this topic.