When using the Bill from, Bill to, Ship from or Ship to for the Place of Supply is not enough
Traditionally in AR the place of supply is based on the following factors:
Bill From: Legal Entity address Bill To: Customer site
Bill To address given on the Invoice
Ship From: Warehouse Address given as additional information
Ship To: Customer site Ship To address given on the Invoice
But what happens when these are not valid for the transaction. What if a legal entity has a registration in two European countries and has the place of supply in the country which is not their legal entity address. Or there is no Warehouse address for the transaction.
AR has an addition factor for Point of Origin which can be used to determine the place of supply.
Point of Origin is used within the Vertex/Taxware tax engines but it can also be used within standard eBTax rules to determine place of supply (and other tax determination rules). This gives the extra flexibility to be able to drive taxes from different countries on transaction other than Bill/Ship To/From. Or from other scenarios which were previously not possible.
UK based Transaction with for a UK Customer but the Point of Origin of the transactions is from Netherlands
Netherlands VAT is applied based on the Point of Origin as the Place of Supply