This podcast explains the limitations of SAP systems in handling complex European VAT determination, particularly for mechanisms like triangulation, reverse charge, and chain transactions. John Dingle, Product Director, Meridian clarifies that SAP S4HANA offers no material improvements over SAP ECC in VAT determination capabilities, as both use the same underlying logic and condition record structures. The content details the complexity of European VAT rules, using triangulation as an example to illustrate the numerous checks required to determine proper tax codes. The presentation concludes by explaining that companies typically need to implement custom solutions, complex condition records, or third-party VAT determination tools to address these limitations in both SAP systems.