What You Should Know About Intracommunity Transactions and Reverse Charges

You should be familiar with the following information regarding intracommunity transactions and reverse charges:

Topic	Description
Intracommunity transactions	Invoices related to intracommunity services transactions. These are stored in the Tax areas - Tag Table EMEA - S (F744008) table.
Reverse Charge	A transaction is a reverse charges transaction, if it satisfies the following conditions: Tax rate area is set up in the F744008 table. The transaction is not a special intracommunity transaction as set up in the Tax Areas - Tag File Maintenance - ESP program (P74S408). Either the value for the Description 2 field of the document type set up in 74S/RL is X, or the value in the Description 2 field of the tax rate area set up in 74S/RT is X. During the process, the system searches for the document type in 74S/RL. If the document type does not exist in the 74S/RL UDC table, then the system searches for the tax rate area in the 74S/RT UDC. Transactions that you identify as intracommunity transactions in the Tax Areas - Tag File Maintenance program (P744008) but not identified as special transactions in the Tax Areas - Tag File Maintenance - ESP program (P74S408) are included in the emitted invoices and received invoices section of the Model 340 VAT report. The received invoices register includes the positive line amount and the zero-rate line amount for VAT for a reverse charge transaction. The emitted invoices register includes a positive line amount for VAT for a reverse charge transaction.
Special intracommunity transactions	Transactions that exist in the F744008 and F74S408 tables and that do not have the value X in the Description 2 of either 74S/RL or 74S/RT UDC tables, are considered as special intracommunity transactions. Special intracommunity transactions are stored in the intracommunity transactions register and not included in the emitted invoices or received invoices registers.
Processing options for processing reverse charges	You use processing options for reverse charges to specify which tax rate line in the Tax Areas table (F4008) the system uses to get the amounts from the Taxes table (F0018) to write to the fields for the tax in the received invoices and emitted invoices registers.