Non US Tax (VAT) setup?

Hi,
I have read previous notes concerning how tax is applied and they all seem to relate to previous version of Webtools, and I am none the wiser.
My requirements are:
We have a number of different tax codes to apply to business partners.
We have a number of different tax codes to apply to items.
Source and destination are irrelevant for us (Irish based website with Irish customers).
I do not mind that a customer has to login before they can see VAT displayed.
It would seem that this is not part of the synching process and has to be manually setup.
I have already manually created one of our most common tax codes as an assigned type that applies a factor. I have made this active for both a test customer and item, but it is still not adding VAT with this combination.
Could someone please advise as to what I need to setup in Webtools2007 for this to work.
Thanks.
Martin.

Hi,
Just to let you know, I have followed the documentation and have setup as listed below but VAT is still not being applied after user log on:
Taxes - Definition - General:
Tax code = A1 (matches our main B1 Tax Code and is the default code within Synch Mgr)
Name = IE Sales 21%
Type = Assigned
Country = Ireland
State = -None-
Postal Code = blank
Calc Type = Factor
Basis = Price
Apply Tax to Freight = Unchecked (We deal with freight in another way)
Taxes - Definition - Definition:
ColLowerLimit = 0.00
colUpperLimit = 9999999999999.00 (have also tied it set to 0.00)
colCharge = 0.21
colEffective = 2008-Jan-22
ColExpiration = 3000-Mar-20 (
Business Partners - Partner Detail - Account Info - Taxes:
Against a test BP the tax code shows as active:
Effective Date = 2008-Jan-01
Expiration Date = 3000-Mar-25
Items - Item Detail - Financials - Taxes:
Against a test item the tax code is ticked.
Logging on as the test customer and adding the test item to the basket does not result in VAT being calculated.
Is there a step that I have missed?

Similar Messages

CST and VAT amount (non deductible taxe) is debiting in the purchase price

Hi
I am facing some problem in migo FI documents
MY client is maintaining standard price for raw materials
While doing GR in MIGO CST and VAT ,both are non deductible taxes, is debiting in purchase price variance and crediting in GR/IR
The above said taxes are not debiting in raw material account now
I had already done all the settings in OBCN like tick mark, posting indicator and 3 Distribute to relevant expense/revenue items etc.,
but still the taxes are debiting in variance account. We are maintaining pricing procedure as TAXINJ
plz give your suggestions how to solve the problem.

Hi
If you have maintained a Standard proce control in the material master, the non deductible taxes will not post into the material account, you need to maintain a moving average price control for the material to get the non deductible taxes posted.
Price variance account is trigerred due the reason as sytem is trying to post it on to the material and you maintained it as standard price, so sytem cannot add to the material, so it posts the amount in PP account.
Change price control from S to V, you r issue will be solved
Thanks & Regards
Kishore

Non deductible tax problem

Hello, Created one condition type: ZVSB (VAT non-deductible) Condition class: D, Calculation type: A, Cond. category: N, Access sequence: MWST, item condition. In Tax calculation procedure: (T/code OBQ3) - TAXINN ZVSB condition type calculation - Basic price + service tax, account key: NVV (tax type:2, non-deductible, posting indi: 3) In MM pricing procedure: (T/code M/08) There are 2 condition type: NAVS: Non-deductible tax JEXS: Taxes on the PO Tax code created: ZX (Vat 5% non-deductible & 12.36% service tax) Problem: At the time of creation of PO with tax code ZX.......the VAT value also fetch in condition NAVS & total tax value fetch in JEXS condition, which increased the PO value (Double VAT value) For e.g. Basic price: 100 Service tax: 12.36 VAT: 5.62 Actual Po value should be: 117.98 but in my case: PO value is coming Basic price: 100 NAVS: 5.62 Jexs: 17.98 PO value: 123.60 I want that vat value should come in non-deductible condition i.e. NAVS & service tax in JEXS. Kindly help.

Hi,
As of my knowledge, there is no standard condition type through which you can bring the deductible tax alone from tax procedure to MM pricing procedure. You may write a routine with the help of abapers to acheive this special reuirement. Or you may deduct the value of non deductible tax (NAVS condition) from total taxes on the PO (JEXS condition) in MM pricing. You can achieve this by adding a new condition type with 100% value of NAVS and add it to JEXS so that it will giv the deductible taxes alone.
Hope its helpful.
Regards,
AKPT

China - Custom Tax, VAT Tax Handling

Hi SAP friends
I have the problem of Import custom tax and VAT tax for puchasing.
It is Domestic Sales scenario. Need to purchase material from oversea vendor.
Oversea vendor sell mateiral to China company RMB 100 per PC.
Mainland company needs to pay custom for custom tax 20% and the custom tax is non-deductible. Custom tax is 100*(20%) = RMB 20.
Then, Mainland company needs to pay China government VAT tax(17%),
VAT tax is 100(1+custom tax)(VAT tax)-100 = 100(1.2)(1.17) - 100 = 40.4
So, VAT tax amount = Material price * custom tax * VAT tax
In PO, I use ZOA1 custom condition type to input Cutom tax amount for Custom tax and input Tax code for VAT tax.
When good receipt, RMB 120 post to Material stock account. RMB 100 post to GR/IR. RMB20 post to custom account
It still be fine.
When do LIV, RMB 100 clear GR/IR. RMB 17 post to VAT tax account becasue it use RMB 100 as base amount to calculate VAT tax. RMB117 post to AP vendor account.
Actually, mainland company only pays RMB100 to oversea vendor and the Tax amount should be include Custom amount. Corrrect VAT tax amount is 100(1.2)(1.17) - 100 = 40.4 (use RMB120 as base amount to calculate VAT tax), but not only RMB 17 . But, in LIV payment to vendor now is RMB120. It is not fulfill the requirement of mainland company.
Do anyone have experience about China Import purchasing material. And, would share how to settle the payment of vendor and how to make use (Material price + Custom tax amount) as base amount to calculate VAT tax amount?
Thanks a lot for your help!
Mag

It may helpful hint before going to configure.....abt the tax codes..
Value Added Tax (VAT) was implemented in China in 1984. Initially, the tax was levied on 24 specified
items. The need for constructing a socialist market economy system in China resulted in the proclamation
of 'The Provisional Regulation of the People's Republic of China on Value Added Tax' on January 1, 1994.
Value Added Tax in China is one of the important sources of fiscal revenues for the government,
especially the central government. The implementation of VAT is done by the State Administration of
Taxation while the customs collects the import VAT.
..******note this point it may helpful*********
The revenue earned from VAT is divided between the central (75%) and local government (25%).
The list of VAT taxable items and the rates in China can be understood from the following:
Coverage of Collection
Rate
Exportation of goods
Edible vegetable and grain duplicates
Agriculture, forestry, aquatic products, products of animal husbandry
Book, magazines, newspapers
Tap water, cooling, heating, hot air supplying, gas, hot water, natural gas, liquefied petroleum gas,
coal/charcoal products for household use
Selected non-metal mineral products, Selected metal mineral products, coal
Chemical fertilizers, feeds, agricultural machinery, agricultural chemicals, plastic converting film for
farming 13%
Crude oil, mine salt and other goods and services not listed above
17%
VAT in China is payable by individuals as well as enterprises who are associated with selling
merchandise, providing services related to processing, repairing and assembling and import of goods.
VAT Taxpayers in China are categorized into two sections, normal taxpayer and small taxpayer, depending
on the turnover of the goods and services on sale and the accounting system condition.
The amount of VAT payable by the normal taxpayer can be calculated by the following:
Output tax payable for the current period u2013 Input tax payable for the current period = Tax payable
The amount of VAT payable by the small taxpayer is as follows:
Sales amount x Applicable rate = Tax payable
(The applicable rate is 4% for commercial sectors and 6% for others)
Certain items and services are exempted from VAT. These include the following:
u2022 Instruments and equipment imported for direct use in scientific research, experiment and education
u2022 the agricultural production materials as ruled, the self-produced primary agricultural products sold by
Agricultural producing units and individuals
u2022 Imported materials and equipment granted, gifted by foreign governments or international organizations
u2022 Contraceptive medicines and devices
u2022 Articles imported directly by organizations for the disabled for exclusive use by the disabled
u2022 Materials imported directly to support the poverty relief and charity cause donated freely by overseas
natural persons, legal persons and other organizations
u2022 The taxable services provided by individual disabled laborers
u2022 Antique books purchased from the public
Certain reforms have been implemented in particular areas of China in 2004 with regard to the VAT.
chk the website http://www.cabc.org.cn/news/2006-1-19/2006119145600.html

Deductible and non-deductible tax in CIN???

Hi experts
Can anybody explain me about deductible and non-deductible tax in CIN.
Explain me with clear example from purchasing with excise duty point of view .
With some example of duty with some amount .
Thanks
SAP-MM

Hi,
Deductable Tax :- It is not part of your inventory...You have give Separate G/L in T code OB40.
Non Deducatable Tax :- Part of yout inventory. No Separate G/L.
Supppose PO 10 Qty @ 10 = 100 Rs
Tax 4% Vat = 4
Total 104.
Now In Case of Dedutable at Time of GR , GR/IR      100 Cr
                                                                    Stock       100 Dr
At time of Excise Posting
                                    Cenvat Account        4 Dr.
                                    Cenvat Clearing           4   Cr.
Non Deducatable        GR/IR         104 Cr
                                    Stock         104 Dr
The Following Conditions Falls in both Category as
Deduct able tax:-
          JMOP    - IN BED Settoff %
          JEC1     - A/P Edu. Cess Settoff
          JSEP     - IN A/P H Ecess Setoff
          JVRD   - A/P VAT RM Deductable
SETOFF Must Be Maintained:-
JMX1 --     IN: A/P BED setoff
JEX1 ---      Ecess Setoff Sta
JHX1     IN: A/P SECess SOTot
Non Deductable Tax:-
                         JMIP    - IN BED Inventory
                         JEC2   - A/P Ecess Inventory
                         JSEI   - IN A/P H Cess Inventory
                        JIPC - IN C Sales Tax INV
                         JVRN u2013 A/P VAT RM Non-Ded.
Condition For CVD in CIN :-
                         JCV1    - IN CVD e.g. 14%
                         JECV   - IN CVD Prim Edu e.g. 2%
                         J1CV - IN CVD Sec Edu e.g. 1 %
Hope Help U !
Regards,
Pardeep malik

Non-Residence Tax - Withholding

I am preparing masterdata setup to do functional testing on TUB # 197. Within SAP, how do you set up the masterdata to test out Non-Residence Tax? Specifically, How do you get a township's withholding to pass to BSI? How should the deduction be setup in SAP and ensure that it is being passed to BSI to calculate?
Being that this is a non resident tax, I would assume that it would be the work record. I need recommedations on how to pass the withholding for a particular authority. The Regulatory Bulletin changes the tax rate in the TaxFactory database. It will not change the information passed to BSI to calculate.
Thanks,

Howard, I checked table T5UTI and the tax area is there. The tax authority is already in table T5UTE as well. I think the problem may be with the tax model associated with the tax area. The TUB is delivering a change to the tax area where there is a decrease in the Non-Residence Tax Rate from 1% to .5%. When I test an employee that has this specific tax area on the IT0208 record the results are as follows,,,,
It pulls in tax type 84 which in PA is local service tax prorated amount of $2 per pay period. I expected to see tax type 01 withholding since this change is affecting withholding tax.
So, I summize that the tax model that is attached to this particular tax area is incorrect. Not sure which tax model I should change it to.
Thanks,

Dedutible and non deductible tax cin

Hi,
Can any one explain me what are the deductible and non deductible taxes in case of vat .
how we can configure these settings.
regards
veknkat

In case of some materials, the VAT paid on purchase of these items can be availed back from the goverment, This is called deductible tax. Here VAT portion is not loaded to material inventory, It is posted to a separete GL account as per the config and later stage it will be cleared-off by finance
In case of non-deductible VAT, the VAT amount will be loaded to material inventory. Here company can not claim this amount back from govt.
regarding configuration, u have to define a new account key in case of deductible tax and assign gl accounts
in case of non-deductible tax u can use SAP standard key NVV
hope this clarifies ur doubt
award points

Invoice non deductible tax amount vs Purchase order

In the purchase order the tax amount is calculated item by item (ME21N). In the invoice (MIRO) when we select flag Calculate tax the system calculates the tax amount for the total of all the items. Because of this system behaviour in the invoice verification sometimes we obtain small differences.
These differences should not exist specially when we are using a non deductible tax that affects the material valuation with the goods receipt and has to be corrected in the moment of the invoice verification.
Why does the system have a different behaviour from the purchase order to the invoice?
What can be done?
Best regards

Dear Biju K
Whatever you mentioned about condition NAVS is there in system.
I am not adding tax code in PO, referring your earlier email I am asking that.
For adding other element I have not asked anything here, only to clarify your statement
You need to cross check why non-deductible tax amount needed in your PO with NAVS condition type and its purpose.
I explained this.
My question is simple that in one PO I am getting non-deductible tax but if I change vendor for the same material I am not getting non-deductible tax in condition tab ? I am not able to understand why its happened ? If one PO shows means there are chances that basic configuration is correct but may be somewhere something is wrong, I want to find out that. If you can throw some light on that its helpful for me.
regards
Nitin

Excise and Sales Tax/VAT related notes.

Hi,,
Can anyone provide me notes on Excise and Sales Tax/ VAT related issues(Pricing Proc/Condition Types/Sceanrios etc) at my mail id [email protected]
Regrds,
Binayak

Hi Pratap,
For free goods you have to pay excise duty, that is why i recommend you to follow a new pricing procedure, where the Price Condition type is statistical(to calculate excise) and give payer as self if the excise duty you would not get from customer,\
1.Create invoice and excise invoice.
2. If you don't want to to hit self(given in document header partner) create proforma and excise invoice
revert if you require any clarrification.
regards.

Error in A/P invoice -non deduct tax a/c missing

Dear All
While adding A/P invoice from base GRPO where it contains frieght an error is displaying:non deduct tax account is missing for stock item.
In frieght the stock option and distribution method is none only,but A/P invoice getting added with out frieght this is issue is coming only when freight is given.
Please provide the solution
Regards
M Auditya

Hi,
Change your distribution method from NONE to Quantity option to post the document.
Check the below threads
Non Deduct Tax Account is Missing for Stock Item [Message 439-125]
Re: Error:Non deduct tax acount missing in stock item
Senthil Maruthappan.
Team work Never Fails

Creation of Tax Code - Service Tax + VAT

Hi,
I want to create new tax code
Service Tax - 4.12% + VAT 5%.
The steps i followed is in FTXP,
1. Against JSRN given value - 4.12
2. Against JVRN given value - 5%
But it gives me error. Define tax code at level 510.
I want to create new tax code SV which includes Service Tax + VAT.
Kindly let me know the proper way to do it and where i am going wrong.
Regards
Manisha

Hi,
My problem is not yet solved.
I want Service Tax - 4.12% + VAT-5% under one Tax code SV.
I repeat I have created tax code SV
In FV11,
for JSRN i give tax code SV and value 4.12% for Service Tax but for JVRN when i give tax code SV and value 5% it gives me error :
'Tax indicator SV has percentage rate 4.12%'.
Kindly let me know proper solution, i have checked settings are all proper as per your replies.
Just let me know how do i create the two taxes JSRN and JVRN under one tax code SV because SV accepts only one fixed value.
Regards
Manisha

Cash Discount after Tax & VAT

Hi , Friends,
My client has a scenario where in some purchase orders , he receives the discount after tax.
when I add the discount (absolute) after tax in the m/08 , the net price changes and the tax is calculated on this new net price which is wrong & not required .
Friends tell me what chnages I need to do so that discount is calculated after Tax & VAt and the ideally what should be the accounting entries in MIGO and MIRO.
if the gross price is Rs 100
tax is Rs 10
and discount is Rs 5.
Thanks in advance

Hi Dgn,
What type of industry sector your client belongs to. But as a standard practise, cash discounts are captured before adopting the Tax or VAT through Invoice.
We will calculate the accounts payable:
Usually below is the scenario for taking the discounts from the vendor in the process of purchaing:
will take your given figures/values:
Eg. (1)
                           Total gross price:      100.00 INR            (as per your client)
                           Discount:                       5.00 INR          (-ve)
                                                                                95.00 INR
then adopt, Tax (10%):                             9.50 INR      (10% on gross ( = 9.50 INR) :   goes to govt. for tax depart.
that means, the total amount:                   85.50 INR      payable to the vendor (A/P)
But, where as in your case /as per client,
(2)
Taking your eg. Total gross price:      100.00 INR            (as per your client)
                           Tax amount: (10%)     10.00 INR            (10% on gross = 10 INR)    : goes to govt. for tax depart.
                                                                                110.00 INR
then taking,       Discount:                         5.00 INR      (-ve)
that means, the total amount:                105.00 INR      payable to the vendor (A/P)
(1): 85.5 INR   < (2) : 105.00 INR
So, in 2nd scenario, your client has to pay more to their vendors & also more tax in the process of purchasing compare to the usually procedure (1). Other wise your client has to pay extra 20.00 INR. Hence option 1 is the rightone.
Pls check with your client again and suggest them further.
Hope you understood.
Regards,
Sapsrin.

CREDIT NOTE FOR SALES TAX/VAT

WE WANT TO PREPARE CREDIT NOTE FOR VAT WRONGLY CHARGES IN THE BILL. WHEN WE ARE PREPAIRING THE DOCUMENT (INVOICE CORRECTION) WITH REFERENCE TO THAT BILLING DOCUMENT, THE DIFFERENCE VALUE OF(TAX/VAT) IS NOT SHOWING IN NET VALUE AND IT IS NOT PROCESSING FOR INVOICE(CREDIT NOTE).SO HOW TO PREPAIR CREDIT NOTE FOR WRONGLY CHARGED VAT?
Please guide .

Hello,
It's almost impossible to make a credit note in this situation.
You'd better cancel the original invoice and create a new one using the correct VAT code.
Regards,
Johan

Input tax, output tax, VAT & service tax,

Dear all,
I have configured tax on sales & purchase.
My client wants the following combination.
Service Tax , input tax,output tax, with VAT & without VAT. I have also configured. Can anyone tell what are the GL accounts that have to be assigned in OB40 under what transaction. for example MWS, VST, etc.?
i will assign good points.
Thanks in advance,
Regards,
A.Anandarajan.

> Dear all,
>
> I have configured tax on sales & purchase.
>
> My client wants the following combination.
>
> Service Tax , input tax,output tax, with VAT &
> without VAT. I have also configured. Can anyone tell
> what are the GL accounts that have to be assigned in
> OB40 under what transaction. for example MWS, VST,
> etc.?
> <b>Hi for the input and out tax-service tax VAT accounts u need to define a GL account which should be a BS account and on the GL account settings (FS00)
enter * in the tax category so that it will accept all taxes. Check for the actkey (MWS, VST etc ) and assign proper GL accounts defined in the above step in OB40.</b>> i will assign good points.
>
> Thanks in advance,
>
> Regards,
>
> A.Anandarajan.

Non Dedutable tax code issue

Hi Gurus,
I have one issue, User Created PO with non dedutable tax code and Did GR and while doing IR
Invoice Account Details
Posting        Accounting        G/L Code             Act/ mat/Ven             Amount
1                   K                        220000               Vendor code               5050.02-
2                   S                        230000                GR/IR Clearing Acc     4449.39
3                   M                        110950               Material code               600.66
Issue is tax amount is 600.66, Why it is posting Accounting Key M as this is non dedutable tax code, so as per my understanding
System shoud post 600.66 to GR/IR clearing account, so why it is posting to M.
Please suggest where it is went wrong?
Anil

hi,
as in your case you are not availing the cenvat credit, instead you are loading the same on the inventory as you could not avail it.hence the system has loaded the cenvat credit on the material that why you are getting sepearte line item in the accounting doc.
in the tax procedure you would have assign NVV accounting key against the condition type. you define the details of NVV in OBCN trx where you would have mentioned as seperate line item(2) against the posting indicator. if you have maintained (3) against the posting indicator then it would distribute the expense /revenue item.i.e nothing but your GR/IR account
Regards,
velu

Non US Tax (VAT) setup?

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