This symptom occurs in particular if both the country of origin and the destination country are members of the European Union (EU).
SAP S/4 HANA CLOUD All versions
Reproducing the Issue
- Pick a Business Partner without VAT Reg No registered in the master data.
- Follow the steps of 1MX Creation of a Sales Order.
- Check TTX1 Access Sequence determined.
Observation: Even requirement 7 not being met, Domestic Taxes are applied to the document.
This is the standard system behavior.
These conditions that are defined in the standard system were enhanced for the value added tax access:
- If the country of origin and the destination country are EU countries and if the VAT registration number is not filled, the condition is not fulfilled.
- If the country of origin and the destination country are EU countries and if the VAT registration number is not filled, the condition is fulfilled even if both countries are different.
This means that a business transaction within the EU is considered to be an inland delivery if the partner has no VAT registration number.
In the master data of the corresponding partner function, maintain a valid VAT registration number and redetermine Taxes through Change Billing documents app "Updated" button.
VAT Registration number, Tax determination, access sequence