What is 'non-EU entity' in SAP SD - Sales and Distribution?

non-EU entity - Overview

• Component: SD

• Component Name: Sales and Distribution

• Description: Any SAP entity or Subprocessor incorporated in a country which does not provide an adequate level of data protection according to European Union EU laws and regulations.

non-EU entity - Details

• 
  Key Concepts: 
  A non-EU entity is a company or organization that is based outside of the European Union. This term is used in SAP Sales and Distribution (SD) to refer to customers or vendors that are located outside of the EU. 
  
  How to use it: 
  In SAP SD, non-EU entities are identified by a special code in the customer or vendor master data. This code is used to indicate that the customer or vendor is located outside of the EU and should be treated differently from other customers or vendors. 
  
  Tips & Tricks: 
  When creating a customer or vendor master record for a non-EU entity, make sure to select the correct code in order to ensure that the correct tax and shipping rules are applied. 
  
  Related Information: 
  For more information on how to create customer and vendor master records in SAP SD, please refer to the official SAP documentation.