Changes due to Brexit – Newsletter 2020 December

The UK will leave the European Union and will not be member of it from 1st January 2021. Special handling of the Northern Ireland, SAP distinguishes it based on region code.

Changes are required in Finance, Sales and Logistics modules.

The following notes describe the required actions due to the leave.

Changes due to brexit

Legal structure: Check your legal company structure to determine whether it will be affected by Brexit. The impact on your business structures must be determined for each individual case.
VAT: VAT identification numbers for the UK (starting with GB) must remain in the business partner master data and company code master data at least until the last posting with EU-relevant tax codes has been posted.
Withholding tax: Some transactions will become subject to withholding tax.

Master data

New region
Tax ID changes
Reconciliation accounts


Non-EU tax code usage
Check recurring & sample documents

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Northern Ireland

The Northern Ireland protocol lasts until 31st December 2024

Special treatment for Northern Ireland has been agreed upon: Goods deliveries between Northern Ireland and the EU are still treated as intra-community supplies if the known prerequisites (e.g., VAT ID) are met. Be aware that services are not covered by this protocol.
If you have customer and suppliers in GB, particularly in Northern Ireland regions, correct postal codes and region codes must be maintained.
SAP adds a new Tax Number Type (GB6 tax category) which you as a customer will have to maintain in case you have business transactions in Northern Ireland regions.

GB tax numbers SAP 2020

Example: NI customer tax numbers must be maintained as GB0 and GB6.

Finance related reporting

No expected major changes to VAT returns in the remaining EU member states. Recapitulative statement (EC sales list: no specific changes are required here. A minor change is needed for Northern Ireland to get the correct “XI” VAT identification number in the header. Mini One Stop Shop (MOSS) Businesses will no longer be able to use the UK’s MOSS.

Intrastat reporting

After 1st January 2021, goods movements between the UK and the EU countries must be reported in Intrastat:

  • Receipts will continue to be reported in the UK.
  • Dispatches will continue to be reported in the UK but only if goods movements are related to Northern Ireland regions.
  • In the EU countries, both dispatches and receipts will continue to be reported but only if the goods are moved between the reporting EU country and Northern Ireland.
  • Goods movements between the EU and Northern Ireland must be reported in EU countries and the UK.
  • Imports into Great Britain from the EU must be reported in the UK.

Sales related topics

From 1st January 2021, new tax condition records must be set up as NI region sales of goods will be considered as intra-community sales, but sales (goods and services) to UK and services to NI will function as third country transactions. For this reason, material master tax classification data must be changed in both goods and services.


Please take into consideration, that currently SAP is publishing new notes and updating existing ones.
Check SAP website for any updates in the meantime.

BREXIT: Through the Transition Period and Beyond: 2885225
Recommendations for Brexit in FI: 2768412
Important BREXIT related information – Intrastat: 3002286
BREXIT: Adaptation of Customer/Supplier master data for Northern Ireland Protocol-Part 1: 2998897
GB: Use of central class for Northern Ireland Protocol: 3000100
BREXIT: Preparation for Sales Tax Determination in your S/4 HANA Cloud System: 3005574

Changes due to Brexit

This article was written by: Anett Szalai

SAP Warehouse and Transport Logistics Services

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