VAT and sales & purchase tax

Hi,
1 In SAP, I do not see the configuration for value added tax but I only can see tax on sales/purchases. why?
2 what is the difference of vat (gst) against sales and purchase tax?
thanks
rgds

Hi ,
Dear there is no difference between VAT and sales & Purchase tax. Whenever received goods from Vendor agaisnt PO,you have received Tax Invoice against delivery challan ( That tax called as Input tax) and whenever sold goods to customer that tax called as output tax. In India most of the states using VAT oriented tax rules (it is centralized tax rules controlled by sales tax department) and remianing states using local rules (i hope) that GST.
Please visit sales tax website
Best rgds
ManiKumar

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Deactivate country from sales/purchase tax determination

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We are facing a typical problem in tax, We have a requiement to deactivate tax for some countries and these countries are not relevant for any sale/purchase tax. For that, we removed the country from define tax determination rules in sales & distribution->basic functions. However when we exectute the intercompany delivery, system showing the various error messages as attached in detail.
The reason we removed the countries since tax classfication view not needed in customer/material master view if the countries are not relevant for tax.
Kindly suggest.
Best Regards,
Goutham

Even if any customer or country is exempted from tax, dont hide from the respective masters.
What I would recommend is that you have a separate tax (as like exports) and assign to a combination of destination country and origin country as tax exempt, in VK11.
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By default when you select IN_COA Chart of Accounts why Cess and HSCess Purchase Account Ledgers are in liability Drawer, in Reality were the purchase tax what you paid is Asset.
Please Clarify
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Hi Santhosh,
Check the thread
Re: tax code
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Sales equlization Tax for Spain

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Thank you for the link. However, I have already reviewed this.
When I review TAXES Finance tax procedure, I see the Output Tax and the equilization tax (Recargo tax).
In SD pricing procedure, I have two tax conditions : MWST (VAT) and ZREC (custom tax condition for Recargo tax). I expected that by setting up MWST tax condition master data with the proper tax code, the SD pricing procedure would invoke the FI tax procedure, and have the MWST rate returned (16%) and the Recargo tax rate returned (4%).
Instead, I had to set up tax condition master data for MWST and ZREC with the proper rates. The same customer master tax classification and material master tax classification is used for both MWST and ZREC. So there is less maintenance for customer and material master data.
I have been able to apply the proper tax rates in the sales order. However, I just wanted to verify that the configuration setup is correct.
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Vat or sales and purchase tax

hi,
can anyone explain
1) how purchase tax (input tax) happens and
2) how sales tax (output tax) happens
thanks
rgds

Hello,
If you're posting an incoming invoice you must use purchase tax. In FTXP you can define purchase tax with using VST account key. Otherwise If you're posting outgoing invoice you must use sales tax. ın FTXP you can define sales tax with using MWS account key.
In FTXP give percantage to account key VST for purchase tax (for sales MWS account key) and click Tax account for assigning tax G/L accounts.
After that for example in FB60, give amount for vendor and G/L item, give tax codes and click calculate tax. In simulation screen you should see the tax calculation.
I hope it's enough for you.
Regards,
Burak

S_ALR_87012357 Advance Tax on Sales/Purchase - VAT CYCLES

Hi Viewers,
Vat Cycles - When executing transaction code S_ALR_87012357, we cannot get achieved results. The entries from the automatic output vat account (2504000) should be transfered to account (2503000) when we use this transaction code. We have gone thru the complete process and still no result.
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Hi
In "Aternative Tax Payable Account" field give on which GL account the transfer posting has to happen.
If you want to use a different tax payable account for the transfer posting of the tax on sales/purchases to the one defined in your system configuration, you must enter that account here. The system uses the posting keys configured for the transaction key 'UMS' for the debit and credit postings. Check which fixed posting keys are allocated to the transaction key 'UMS'
Hope this will help.
Rgds
Vani

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.

Sales tax register and purchase tax register

Dear All,
Is there any standard report for sales tax register and purchase tax register? give me your valuable inputs appraisals are waiting.
Thanks inadvance.
Nauma.

Please refer T code J1I2 for Sales Tax Register. There is no Standard Purchase Tax Register.
Regards
Bhavesh Mistry
Edited by: Bhavesh Mistry on Jul 15, 2009 7:10 AM

Getting the default zero-rated sales and purchase tax codes

Hi,
Does anyone know how to obtain the default zero-rated sales and purchase tax codes? ie the tax exempt sale and purchase tax codes. The OADM holds the default sales and purchase tax codes but not the default zero-rated sales and purchase tax codes. Is this set by region?
Lita

Hi Lita,
I don't know much about the zero rated tax codes or where it is set up, but what I can suggest is if you know where the system retrieves it (say on an Invoice) that you use SQL Profiler to possibly investigate where the queries are pulled from.
Where in SBO is the zero-rated tax codes used?
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Adele

Tables for VAT or CST and RATE OF TAX for a PURCHASE ORDER

i am developing a report(abap ALV)
i need to display the VAT or CST and RATE OF TAX for a PURCHASE ORDER that has been posted .
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hi kumar gaurav
Check KONV table..
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Purchase and Sales Report

Hi
There is one requirment for Report, My client need a report for pur & sales in which Purchase amount with Vat 4% and 12.5% should show seperatly colume can anyone help for this
With regards,
Gopal Krishna

Hi, all
Actually here we have not Implemented SD Module and Sales Entry are flowing through FI Module, In this case Total Sales of the month and Tax Details. is there any such Standard Report for this?
With Regards,
Gopal Krishna

Column report for purchase and sales

Dear Experts
I would like to create column report like Doc No, Item Description, vat 4%, VAT 12.5%, CST 2%, BED, CESS, HRCESS.
The above mentioned report has to made tax wise purchase and sales.
What is the table i have to take please help me.

Hi Asupathy Raja,
Check the thread
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Are the prices shown on Apple online stores the price actually paid or are these prices subject to extra local taxes..VAT or purchase tax etc

Are the prices shown on Apple online stores the price actually paid or are these prices subject to extra local taxes..VAT or purchase tax etc

Paul_31 wrote:
I think it varies. In the UK and France, for example, where I have purchased from the online store the prices included relevant taxes. I believe that in the USofA and perhaps some other countries that the price shown is net of tax because the tax rate varies from state to state.
You can always go through the process of preparing an order at the Mac Online Store for your country and it should show the price together with any taxes. You don't, of course, actually have to place the order .
I'm sure someone will correct me if I'm wrong about the USA online store.
Correct Paul - in the USA, each State sets its own sales tax, so the tax is only calculated during checkout once you've entered shipping/billing information. Even within some states, some cities have their own sales tax rate (eg. New York State is 4% but New York City is 8.875%).

Info about Tax on sales/purchase from a business perspective

Hello everybody,
Where could I find information about tax on sales/purchase? I am especially looking for info from a business perspective. The questions I try to answer are, for example, the followings:
- What are the main business issues regarding VAT on sales and purchase?
- What is the point to have a calculation procedure (T. OBYZ) regarding to business? A tax code would not have been enough?
Many thanks for your support,
Stanislas Bresin

> Hello everybody,
>
> Where could I find information about tax on
> sales/purchase? I am especially looking for info from
> a business perspective. The questions I try to answer
> are, for example, the followings:
> - What are the main business issues regarding VAT on
> sales and purchase?
<b>In case where for a product or a material VAT is involved u need to post the input tax or output as line item separately so that input tax can be adjusted against the output tax. In case the material is not available for set off against VAT then u need to define the same as to be inventorised along with the base price</b>.
> - What is the point to have a calculation procedure
> (T. OBYZ) regarding to business? A tax code would not
> have been enough?
<b>Every tax code is linked to country which in turn is linked to the taxation procedure. Calcualtion contains list of condition types and each condition types have set of configuration how the values are calculated. The condtion type in turn is linked to access sequence which basically tells how the files are being accessed.
Calculation procedures containing the necessary specifications for the calculation and posting of taxes on sales/purchases have already been defined in the standard SAP system for certain countries. Every calculation procedure groups several tax types together into a condition type (for example, output tax or input tax) in the calculation procedure, and determines calculation rules for it.
The calculation procedure determines for which amount the individual condition types are to be calculated. This can be the base amount (total of the expense items and the revenue items) or a subtotal. The entry in column FrmLvl, determines for which amount tax is calculated.</b>
> Many thanks for your support,
> Stanislas Bresin

VAT and Withholding tax setup for Philippine

Hi ,
Anyone is familiar with the VAT and Withholding tax setup for Philippine.
What is the VAT and WHT config in order to fuilfil the following example.
Appreciate if someone is able to provide me some help on this. Thank you.
Invoice Amount of P 1,120.00 gross of VAT
Services Sales to Private
ENTRY TO RECORD REVENUE          Debit     Credit
Accounts Receivable                                1,120.00
     Vat Consultancy Set-Up                               120.00
     Revenue                                                 1,000.00
ENTRY UPON COLLECTION
Cash in Bank                                                  1,100.00
Taxes Payable - BIR ITR                                 20.00
Vat Consultancy Set-up                               120.00
     VAT Consultancy Payable                               120.00
     Accounts Receivable                            1,120.00

Additional Information
Value Added Tax Reporting:
Advance Return for Tax on Sales/Purchases (VAT Reporting)
Use
In the Philippines, companies are required to submit Bureau of Internal Revenue (BIR) forms 2550M for the monthly (value-added tax) report and 2550Q for the quarterly VAT report. However, these forms also include information not provided by the SAP System, such as advance payments. Using the Advance Return for Tax on Sales and Purchases report, you can print the relevant VAT data and enter it in forms 2550M and 2550Q.
Integration
The report is based on the SAP List Viewer (ALV), which enables you to define your own display variants, according to the BIR requirements listed below.
Activities
To access the report, from the SAP Easy Access screen, choose Accounting --> Financial Accounting --> General Ledger --> Reporting --> Tax Reports --> General --> Advance Return for Tax on Sales/Purchases --> Advance Return for Tax on Sales/Purchases.
You need to make the following settings, in addition to your specific selection criteria:
Under                         Set the following indicator(s)
Output control                         Read address data
Output lists                         Output tax: Line items
                                            Input tax: Line items
You need to define your SAP List Viewer display variant to include the following data on the VAT report, as required by the BIR:
u2022     Reporting company's name and TIN
u2022     Vendor or customer name
u2022     Vendor or customer TIN
u2022     Vendor or customer address
u2022     Document date
u2022     Document number
u2022     Reference number
u2022     Invoice amount
u2022     VAT amount
Withholding tax reports
Generic Withholding Tax Reporting
Use
You use the Generic Withholding Tax Reporting tool to generate withholding tax data for withholding tax reports submitted to the Philippine Bureau of Internal Revenue (BIR) and vendor certificates, as follows:
u2022     BIR form 1601 u2013 Monthly Remittance Return of Income Taxes Withheld
u2022     BIR form 2307 u2013 Certificate of Creditable Tax Withheld at Source
u2022     BIR form 1604 u2013 Annual Information Return of Income Tax Withheld on Compensation, Expanded and Final Withholding Taxes
Features
SAP delivers standard report variants and Smart Forms for each of the reports and the certificate, which are listed below.
SAP also provides a display variant for the output lists, 1SAP, which you can specify under Output control and lists in the Display variant column.
BIR 1601
SAP provides withholding tax data for page 3 of the form. The form comprises three sections u2013 expanded withholding tax, final tax based on the regular rate, and final tax based on treaty rates. Within each of these sections, the data is summarized according to the nature of the income payment (ATC code). For more information, see Withholding Tax Code.
The predefined report variant for BIR 1601 is SAP&PH_1601, and the Smart Form is IDWTCERT_PH_1601.
BIR 2307
The predefined report variant for BIR 2307 is SAP&PH_2307, and the Smart Form is IDWTCERT_PH_2307.
BIR 1604
You use BIR form 1604 to report expanded and final withholding tax for all nonemployee transactions.
SAP provides the three required sections of form 1604: alphalists 3, 4 and 5 (schedules):
Section of BIR 1604 -DESCRIPTION - Predefined report variant - Smart Form
Alphalist 3     Payables subject to expanded withholding tax     SAP&PH_1604-3     IDWTCERT_PH_1604_SCHEDULE3
Alphalist 4     Payees subject to final withholding tax     SAP&PH_1604-4     IDWTCERT_PH_1604_SCHEDULE4
Alphalist 5     Other payees whose income payments are exempt from withholding tax issued but subject to income tax     SAP&PH_1604_5     IDWTCERT_PH_1604_SCHEDULE5
Prerequisites
For each withholding tax report, note the required Customizing settings for the corresponding output group.
Activities
To access the report, from the SAP Easy Access screen, choose Accounting --> Financial Accounting -->Accounts Receivable --> Withholding Tax --> Generic Withholding Tax Reporting.
The Generic Withholding Tax Report has several options for reporting.
The report can be run without the Output Group field populated, or it can be run with one of the PH1 to PH5 options as it relates to the reporting forms/requirements
Hope this piece of information is helpful to you.

VAT and sales & purchase tax

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