Taxes

Configuration:
- Define Tax Determination rule
Tax country Seq Tax category
IN 1 MWST
IN 2 UTXJ

- Define Tax Relevancy of Master Record (Customer and Material master)
Tax Category Tax classification Description
MWST 0 Tax Exempt
MWST 1 Half Tax
UTXJ 1 Full Tax
UTXJ 2 No tax

For both Customer master and Material master we have to create above types of tax classification. In customer master, we assign this tax classification in Sales area data, billing tab page, while in Material Master we assign this tax classification in Sales: General data 1. We use this class tax classification for creating master record for the particular tax category(tax condition) for Ex.VK11 For MWST
Country CusTaxClassi MatTaxClass TaxCode
IN 1 0 A6 (12%)
IN 1 1 A3(16%)

Tax Codes are defined in FI.

- Define Regional code (For USA Only)
o Define county code
o Define City Code
- Assign Delivering Plant for Tax Determination
Assign country, geographical region, county code and city code to a Plant.
Based on the country key the SAP system determines which tax type is valid for the plant.

- Check Material Master for obsolete Tax Classification
- Maintain Sales Tax identification number determination. Here you define how VAT registration numbers are defined in the sales order and billing document. We have following options:
Space – Based on priority. Payer, than Ship to party than Sold to Party
A – Tax number copies from Sold to party
B – Tax number copies from Payer