You have the following setup in your system:
The company has its main residence in country A (e.g. Germany).
Employee ABC ( ABC stands for the employee ID) belongs to a subsidiary in country B (e.g.Belgium).
The main company is registered with a tax authority in country A.
The subsidiary is registered with a tax authority in country B.
Employee ABC from country B travels to country A and gets an invoice with the advance tax refund.
You have the following expectations:
Because the main company is located in Germany you expect that the tax country for these expenses is Germany and the available Tax-code is Domestic purchase of goods, standard rate, fully deductible.
Reproducing the Issue
- Go to the Travel and Expenses Workcenter.
- Navigate to the Common Tasks view.
- Create a New Expense Report on Behalf of employee ABC.
- On step 2, maintain the expense type for XYZ (XYZ stands for any Expense Type).
You can see that the country which is selected is country B.
You want to change the country from country B to country A but, the only available tax-code is: Imported goods (supplier invoice).
The desired functionality (foreign input tax deduction) is not supported in Business ByDesign and Cloud for Travel and Expense.
The employee ABC is assigned to a subsidiary in Country B and therefore a trip to Country A is considered as a journey abroad.
As a workaround you can post the invoice without tax deduction and then manually submit the input tax deduction as a voucher.
The Expense Reports - Input VAT Refund report is available for determining the associated documents.
KBA , SRD-FIN-ERM , Travel and Expense Management , How To