How should I treat a related customer or vendor from a VAT perspective? This is very frequently a dilemma which we are faced and which unfortunately there's a lot of misconception surrounding it.
...
Best Practises
A related party does not trigger a different VAT treatment and the standard VAT Business posting group should be applied.
...
- Customer Posting Group
- Vendor Posting Group
In line Inline to IFRS we must clearly distinguish the transaction and balances which are attributed to related parties and this is best achieved by having a specific classification within the Vendor Posting and Customer Posting Group. No other changes are expected.
...