Sales tax exempt indicator?

Is there an indicator in Project Systems that marks a project as "sales tax exempt"?
We have certain projects where we are exempt from paying sales tax for materials and we would like to mark these projects as Exempt. I don't see any indicators in the Project Definition JC20N but didn't know if this would appear somewhere else or as a config setting.
Ultimately we would like the tax exempt status to flow to AP where sales tax would be blocked when the clerk enters the invoice.
Thanks for the help,
Jeff

this is controlled from the material master, sales tab, you can enter tax code
when this material is selected for procurement via external activity or via item category N in internal activity then it should come up with the tax code entered in the material master
Same works in SD when you choose the material in sales line item for AR side

Similar Messages

Sales tax exemption based on material usability

Hello Gurus
We have a unique requirement for tax calculation. For some entities in our organization, sales tax are exempted based on the material usability by the customer. Therefore we need to add some attribute in the Sales Order line that will drive the tax exemption status. Is there any standard configuration that could take care for this? If not, could you please give an example on how did you guys approach in your previous experience

FYI, Taxes depends upon the
- tax classification for Customer
- tax classification for material
- Tax depart. country, i.e., Region of Delivery Plant
- Tax dest. country, i.e., Region where the material shipped means Ship-to Party country
If you maintain access including above fields, say, either of following:
- Country / Plant / Region / Region / Tax ClasCust1 / Tax ClassMat1
- Country / Region / Region / Tax ClasCust1 / Tax ClassMat1
- Country / Country / Tax ClasCust1 / Tax ClassMat1
For configuration, refer following link:
[Define Tax Determination Rules|http://www.sap-img.com/sd009.htm]
For exemption, in VK11 & customer Master for the TAX Condition type, maintain tax indicator as 0.
Refer following SAP Consulting Notes:
- Note 872449 - the sales tax identification
- Note 191932 - Incorrect tax classifications in the SD document
Even you can put Tax classification, Materials Tax classification & Customer Tax classification in SDN or google search to see discussed topic links on the same for reference, like, The tax classification of the customer.
Regards
JP

Maintain Sales Tax Exemption Certificate info in Customer Master Record

Hello people!
I really need your help in this one: we are going to implement SAP in a company settled in Canada. The users requested us that it is highly important to maintain Tax exemption certificate for GST (GST is "Goods and sales tax" -- not withholding) in the customer master record.
I couldn't find anything in SAP to store this info in the Customer Master Record... have you ever had this issue before? is there a workaround? We are not using any external tax system (for example: Vertex). Any information is useful. Thanks in advance. Maria.

Hi Maria,
I was going through how GST works and I think you can create Tax codes under withholding tax and use the same as withholding tax.
As per my understanding of GST, all your process can be met...
However, for reports because there is no standard avail, you would need to develop reports..
Hope this helps..
Cheers,
Redoxcube

Billing issue: No one in the overseas call center understands state tax-exempt license numbers, but we need a refund of sales tax

I've just purchased a year's license to Creative Cloud on my unit's tax-exempt purchasing card, but the tax was assessed anyway. Several calls to the help desk revealed that no one has been trained in U.S. state sales-tax exempt organizations, and so I have no way of trying to get this charge backed out - which will result in a big accounting headache.
Is there anyone out there who may be able to help? Unfortunately there seems to be no way to escape being connected to the overseas call center, where managers aren't really able to provide any assistance either.

I will make a complaint to the better business bureau. I'm out $48 (because I gave it to my brother- we are both college students paying our way through school- except I'm in my 30's and also paying bills). It isn't a lot of money but its a spit in the eyes from Verizon. 15 year customer- so what- spit in the eyes. Sells Verizon phones at her job everyday when she's not working really hard in school- so what- spit in the eyes. I'm also forwarding all of this to our district Verizon rep- see what she says.

Sales order -Tax Exemption License and Excise duty Tabs In IDEAS

Dear Team,
Kindly anyone explian me wat are the importance of the Tax Exemption License and Excise duty Tabs In sales order - IDEAS, ECC 6.0.
Please explain me how to maintain currently it is in greyed mode how to maintain and what is the importance of the said tabs.
Regards
abhi

No answers

Hos can I confirm tax exempt status to get sales tax refund

Hos can I confirm tax exempt status to get sales tax refund

Hi There,
If you have a Tax exempt certificate then you just have to contact us via: Contact Customer Care.
Thanks,
Atul Saini

HT5557 Why is British Columbia sales tax being charged on iBooks when BC's own documentation says that electronic books are exempt from sales tax?

I recently bought a book on iBooks and on the invoice realized that provincial sales tax (pst) was charge. As I knew books were pst exempt, I went to look at the government's website to see if they mention electronic books. I found the aptly named "What's taxable and what's not" (http://www2.gov.bc.ca/assets/gov/topic/BED47DA4EBDBA60A5F28622B8B2E1451/uploads/ whats_taxable_whats_not.pdf) and started looking. On the first page, it distinctly says electronic books are exempt.
So, my question is - why are we getting charged tax when our government says that electronic books are tax exempt?

no, that's not a reason you would use a class file.
anyway, your document class variables are defined on the main timeline so to reference them from any timeline you can use:
MovieClip(root).w36; // for example (but it's really undesirable to have coding in more than one timeline)

Partial sales tax configuration

Experts
We have some customers who are partially exempt from state sales tax. For example, normally the customer is fully exempt (no tax) or they will be charged the full 6%.
How to configure for customers who are, for example, 50% exempt from the 6% state sales tax? Is there a way?

Hi,
What i understood form your detail is that you need a to maintain 50% of the tax for a particular customer and not the full tax 6%.
In this case create another tax code say (A0) for that particular country & tax pricing procedure, there maintain the tax value as half of the full tax say (4%) as mentioned by you earlier......... Then create another tax indicator at IMG SD->Basic Functions->Taxes--->Define tax relevancy for master records... (T. Code OVK3), Assign this tax indicator to the corresponding Cust. master.......
Then while maintaining condition record for that particular condition type in VK11 choose the key combination of Tax Classification cust/Tax Classification material... Then select the tax indicator 5 of cust/corresponding tax indicator of material and enter the tax code (A0)
By this you should get the required half tax for that particular customer
Reward points accordingly if it helps
Regards
Harsh

Origin of sales tax ID number in billing documents

Hello,
The field "Origin of sales tax ID number" in billing documents determines from where the tax ID number is taken, for example:
   A - Ship-to party
   B - Payer
   C - Sold to Party
When the partner functions of the customer are different, how can I decide whose tax ID number the billing document takes? I need to take the tax ID of the payer but it takes of the ship to party.
Thanks in advance, best regards,
Silvia

hi,
The path here is IMG, Sales and distribution, Basic functions, Taxes, Maintain sales
taxIdentification number determination.
Three available options can be assigned to each sales organization. It is recommended that in order to keep consistency throughout the system, use the same determining rules across all sales organizations.
The first is determination rule A, which indicates that the tax number and tax indicator classification are generally taken from the sold-to party customer master record.
Determination rule B indicates that the tax number and tax classification are generally taken from the customer master record of the payer.
Finally, if the field is left blank, the system determines the tax number and the tax classification according to the following sequence:
1.If the payer has a VAT registration number and is identical to the sold-to party, the tax number and tax classification are copied from the payer (in this case, the ship-to party is not relevant). The tax number is copied according to the country of destination relevant for taxes.
2. If 1 does not apply, the ship-to party has a VAT registration number, and the sold-to party does not, the tax number and tax classification are copied from the ship-to party.
3. If 2 does not apply, the tax number and tax classification are copied from the sold-to party.
CHAN

Sales tax on online orders

I am unclear on the sales tax situation for online orders of iPads.
Will I be charged sales tax if I order an iPad thru the Apple online store?
If online orders are sales tax free why are there so may people lining up at stores to buy iPads (and other products for that matter) which will end up more expensive?

OzLK wrote:
I am unclear on the sales tax situation for online orders of iPads.
Will I be charged sales tax if I order an iPad thru the Apple online store?
If online orders are sales tax free why are there so may people lining up at stores to buy iPads (and other products for that matter) which will end up more expensive?
Whether or not Apple (or any online merchant) collects and remits sales tax depends to a large extent on whether they have a retail presence in the state (in this case, if there are Apple Stores there). Another factor is whether the company does enough online business there that the state chooses to expend the resources to collect sales taxes even without a retail presence -Amazon.com, for instance, collects sales tax for sales in Tennessee because they do tons of business here and because many of their distributors and shippers use warehouses here which Tennessee has indicated a willingness to seize in lieu of the tax dollars. Consequently Amazon caved in and now collects taxes at the time of sale. Apple already has retail stores here so they collected taxes on my order at the time I placed it.

Sales tax and Labor Tax

Hello Friends
We are on ECC6.0
On our Service Contracts the is labor taxable and not sales taxable we are having a bit of an issue with sales tax on Service Contracts. Some states are labor tax exempt and some are not. When we create the Service Contract the sales tax is being added to the sales order. When the tax is not supposed to be included, I delete the tax rate from the sales order. But when AR does invoices for the sales order the sales tax is added back on to it. How do we remove the tax parentally or by sales order for each service contract?

Closing ticket no suggestions given

SALES TAX in TAXINN procedure

Hi all,
I am using <b>TAXINN procedure</b>. I want to calculate the CST & LST on sales invoice. For that I have defined JCST & JLST in OVK1 for country INDIA. I have maintained 1- Fully taxable
2-Tax Exempted.
Same conditions I have assigned to the customer master and the material master. When i am trying to create the condition records for these condition types the system is asking for the <b>TAX CODE</b>. (Since I have assigned "D" in condition category for both JCST & JLST. If I use other condition category, the system does not allow me to use it in OVK1).
But we are using TAXINN, so how do I maintain the condition record when we cannot use TAX CODE in TAXINN.
We want to update the sales register also.
Regards,
Allabaqsh G. Patil

well...
even i have the same doubt but as im practising it in a ides sytem
i have gone to FTXP ( t.c) and maintained a output tax as its sales tax..
n its fine now '
is this the sol..

Purchase using tax exempt

how can I purchase using a tax exempt form? The purchase is for a NYC DOE school that has their own username, but requires the teachers to purchase using their own credit card.

You cannot buy without being charged taxes, but you can email Apple and request a refund of any sales tax they impose. For iTunes Store apps, email:
[email protected]
with the following information:
Name on the iTunes Store account:
Name of Exempt Organization:
Amount of Sales Tax to be Refunded:
Order Numbers:
and attach a copy of your tax exemption certificate.
Regards.

Sale tax setoff

Hi experts
Wt is mean by sale tax setoff and how it is working in SD process.
Regards
Ishikesh

hi
There are two types of taxes, Tax on sale or purchase within the State (Local Sales tax i.e LST) and Tax on sale or purchase in the course of interstate trade (Central Sales Tax i.e. CST).
Set-off is the amount of tax credit which can be claimed in the LST return. It is the tax that you have been charged on goods that you have purchased for your business. This credit can be adjusted against the LST payable on your sales, and the balance of LST has to be paid to the Government. Set-Off is claimed on monthly basis.
In FB50 you can post the set off
On the initial screen, enter the Document Date, Doc.Header Text, enter G/L Accounts of LST Receivable, Payable & Bank in u201CG/L acctu201D Column, Select u201CDebit or Creditu201D indicator like LST Payable as Debit, Receivable & Bank as Credit, in u201CD/Cu201D Column, enter amount in u201CAmount in doc.curr.u201D against each G/L account and press Enter , Check for Total deb. and Total cred. In Amount Information , ensure that the indicator is turned as Green . Click on Details tab, to check the details . Click on Simulate button, check the details and Click on Save button.
LST Set Off Document JV is generated.
regards

Query on Config for a tax exempt customer

Hi,
In OVK3 (change View customer taxes) MWSI is defined in tax category.
Tax category in customer master sales area data is MWSI.
In FTXP, condition type MWSI is not defined.
Should i add MWSI in FTXP?
If yes, how will i configure it.
If i have added this condition type, will i be able to process transaction for a tax exempt customer?
Thank you so much and best regards.
Rachelle

Dear Rachelle
No need. Just go to FTXP, input country of origin, tax code and maintain only the following:-
Acct Key::::Tax %:::::::Cond.Type
EX2:::::::::::100.00:::::::::JMOD
CES:::::::::::2.000::::::::::JECS
SEC:::::::::::1.000::::::::::JA1X
Save the FTXP. Now go to VK11, input UTXJ and maintain the above tax code and save. Create a sale order and see how it works.
thanks
G. Lakshmipathi

Sales tax exempt indicator?

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