Allow me to start with a few questions about RITA that we encountered during the project. This will give you a good understanding of the context. After that, I’ll talk about:
- The use case
- Migrating and activating RITA
- Foreign tax declaration in the Netherlands
- Foreign plant set-up
- Selling from stock delivered from foreign plant to customers in the Netherlands
- Tax posting proposal (5Z8)
VAT declaration in the Netherlands
A few RITA-related questions:
Which foreign countries can use RITA and is the ‘foreign plant’ feature automatically enabled when RITA is activated?
RITA-enabled countries can be checked via the following link: Countries/Regions Where RITA is Enabled – SAP Help Portal. Also check out the planned releases for other countries in the SAP Road Map Explorer. If RITA is enabled for a particular country, it does not necessarily mean that a ‘foreign plant’ can be set up. Below is a list of what is possible right now.
Can RITA be used for One-Stop-Shop (OSS)?
RITA has a different purpose than OSS. RITA is only available in SAP S/4HANA Cloud, while OSS is currently supported in SAP S/4HANA, private cloud, and on-premise solutions. If you decide to work with both RITA and OSS together, please be aware that this will not be supported by the SAP team.
How can I use the ‘foreign plant’ feature?
To get access to the ‘foreign plant’ feature you should subscribe to the early adopter care program Influence Opportunity Homepage – Customer Influence (sap.com). Subsequently, you should ask for the activation of scope items 5RP and 5Z8.
Should I request country activation for the RITA country?
If there is no scope item available to enable foreign VAT tax codes for the RITA country, then you should request country activation.
You can find a list of all possible combinations here.
1) The use case
Our customer has a webshop and a ‘foreign plant’ in the Netherlands. Due to legal regulations, they must charge Dutch VAT to the B2C customer. RITA + ‘Foreign plant’ made it possible to charge the correct VAT amount.
Overview of the process:
2) Migrating and activating RITA
Before starting to use RITA, you should take the following steps:
- Step 1: Configuration expert initiated migration in ‘Activate RITA and Maintain Tax registration. Set 2510 to status 1’ (but not yet started).
- Step 2: GL accountant ‘schedule tax job’ with template Schedule Migration of RITA:
- Step 3: Configuration expert checks status in ‘Activate RITA and Maintain Tax registration’ 4 = Migration partially complete (pending customising).
- Step 4: Configuration expert adds foreign RITA country FR, DE, IE and NL to 2510.
- Step 5: Configuration expert enters VAT registration number for the foreign plant.
- Step 6: Assign correct GL account to the foreign tax code A2 in config activity ‘automatic account determination’.
- Step 7: After successful testing of RITA, you can request the activation via incident under component FI-GL-GL-F. The status will be then set to status 5 = Active.
3) Foreign tax declaration in NL
As our customer is required to have a separate declaration for transactions with Dutch VAT, we did the configuration in ‘Setting Up Your Compliance Reporting’.
4) Foreign plant set-up
Add the foreign plant in the setup of the organisational structure. Create a trading partner for the newly created foreign plant. This will be needed when intracompany billing takes place between BE coco and the NL plant. See set-up instructions of scope item 5Z8 (Tax posting Proposal).
5) Selling from stock delivered from foreign plant to customer in the Netherlands
If the required set-up has been done correctly, it will be possible to sell from the sales organisation in Belgium and charge foreign NL VAT when delivered from the foreign plant in the Netherlands.
6) Tax posting proposal (5Z8)
Scope item 5Z8 manages taxes in cross-border goods movements related to intracompany stock transfer. On a monthly basis you can run a tax job to have the correct VAT transactions registered.
- Step 1: Schedule tax jobs: create Proposed Tax postings from Goods movements.
- Step 2: Open ‘Manage Proposed Tax postings’ app.
Double-click line to see tax proposal detail.
7) VAT declaration in the Netherlands
During month-end closing, the correct VAT transactions will be registered in the NL VAT declaration.
Document header view:
Tax item view:
It’s safe to say that RITA is a nice solution to enable foreign tax registration. With RITA there is no need to create a company code for the foreign tax registration. However, there are some restrictions. Please make sure you read and understand SAP note 2907372. If you need any assistance, just get in touch!