VAT Concept

Hi Gurus
I am currently working on VAT input/output tax. I lack the basic concept of VAT in Europe . Can some one guide me some good link to build my VAT concept of Europe please ? I am not asking SAP configuration for VAT. VAT in general.
Thanks in advance
Satya

Hi Kavita,
For configuring the VAT number and business place you have to follow the below menu path in IMG.
> SPRO>Cross-Application Components>General Application Functions>Cross-Application Document Numbering>Thailand>Business Places
Also you can refer SAP OSS notes in Service market place by using search term, VAT numbering, Business place, India..
Regards
MBS

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Tax on second sales

We are having the following requirement in India Localization Taxes.
We (Marketing Company) buy Items(Ice Creams) from our production
company(Separate Legal Entity) to sell to our Customers. This item suffers
Excise Duty (8.8% of MRP) and Sales Tax(12%). When we sell to our Customers the
Sales Tax suffered is 12% of the selling price minus the already suffered Sales
Tax. For eg.
Production Company:
Item Strawberry Ice Cream - MRP of Rs.16.00 (INR)
Base Price Rs. 4.78
Excise Duty (8.8% of MRP) Rs. 1.41
Tamil Nadu Sales Tax (12%) Rs. 0.74
Surcharge on TNGST (5%) Rs. 0.04
Total Cost Rs. 6.97
Marketing Company
Base Price Rs. 11.63
TNGST @12% Rs. 1.40
TNGST already suffered Rs. (0.74)
Surcharge on the Difference Tax Rs. 0.03 -- (Rs. 1.40-0.74) * 5%
Selling Price Rs. 12.32
We need a provision to calculate the Taxes at the Marketing Company. Using
Adhoc Tax is not practically possible in our case as Each invoice contains an
average of 40 items and 200 invoices are generated per day per shift.
(VAT Concept)

Dear Krishna,
Thanks for the reply.You are right.In F-28 the cash discount should come like this.But in our system the cash discount is coming in two line items.Condition type used is SKTO.
In F-28 it shows like below.
Line item 1 Bank a/c Rs 921.20
Line item 2 Discount allowed Rs 2(-)
Line Item 3 Discount allowed Rs 20.80
Line Item 4 Customer a/c Rs. 940
So instead of coming one line item it's reflecting twice, one with negative value whch is calculated on normal discount given to customer/ Material.And both Line item 2 and 3 are being posted to one G/L Account.
Can you pls advice how to correct this.
Regards
Debasish
Edited by: debasish gupta on Apr 7, 2009 4:23 PM

Generic Country Version - No tax localization

Hello,
for countries where there is not a tax localization available, how do you handle VAT concepts since the expense types cannot be assigned to taxes through tax code groups and then the tax code is not available when adding an expense?
Thanks

Hello,
there are plans to allow the maintenance of tax code groups for the generic country versions in future, too.
In general there is always the option to add the tax information during the FI posting in a BADI, too.
This is already in use for several customers for quite a while.
Best regards,
Heiko

Billing and excise invoice for composits tax concept

Hi,
I want to know the billing process, we are in manufacturing as well as in service providing, in manufacturing for the finish material for the billing we follow the process, after delivery with VL01N we create the billing document with VF01 then ref. to VF01 document we do J1IIN then in VF02 we release the billing document for accounting, and in case of service invoice from sales order we directly creat the billing document with VF01 and release to accounting, so I want to confirm whethere this is the right process,
Second think which I want to confirm as per the new composit tax concept , we are giving service along wit material the tax is service tax on
BASE amount                          XYZ
Service tax      10%                  on XYZ
Ecess               2%                    On service tax amount
SECES              1%                     on service tax
BVAT                                      Addition of all above
VAT                  12 %              on BVAT amount
, for this which procedure to be follow,
VA01 , VL01N, VF01 , VF02 release to accounting or
VA01, VL01N, VF01, J1IIN, VF02, release to accounting.
regards,
zafar

If your requirement to have a pricing procedure to meet this requirement, try as follows:-
100:::PR00::::Base Price
110:::ZSER::::Service Tax::::100
120:::JECS::::Ecess::::::::::::::110:::::::110
130:::JA1X::::SHECess:::::::::110:::::::110
140:::BVAT::: (Not clear what is this)
150:::JIN7::::Vat:::::::::::::::::::::140:::::::140
In this, if you want to levy ED also, then you need to insert appropriately in the above
thanks
G. Lakshmipathi

Rebate settlements should not hit the VAT account

Hello everyone,
There is a question on Rebate Settlement.
There is a customer who is entitled to a 15% BPR rebate.
We are accruing for this rebate successfully
The issue we are having is that the materials that this customer buy from us attract 20% VAT but when the customer claims back from us they do not claim the VAT component.
We need to be able to do rebate settlements that do not hit the VAT account.
I ran a test in SAP on a sample rebate agreement but the only way I could get the rebate settlement to not hit a VAT account was to change a material to be not liable for tax and then settle against that material.
Billing doc 1-Posts to VAT since the material is Tax inclusive
Billing doc 2-Does not posts to VAT since the material is Tax exclusive
Any of you aware of any other way to do this (perhaps using a payment type)??
Kindly suggest,
Regards
Manjunath

Hi Manjunath,
As Brian already explained the way how usually rebate settlements happen with settlement or dummy material.
Is our business needs to have settlement against actual materials billed ?
If yes, we did an approach in our client.
we have a six document concept which is custom developed.
You have 2 documents created for rebate settlement run. Rebate credit memo request and rebate credit memo for settlement or dummy material maintained in rebate agreement.
These two documents gets cancelled with corresponding cancellation documents.
New set of documents created for Rebate credit memo request and rebate credit memo with actual materials.
All of these documents are created using a batchjob and these documents form document flow in our case.
You can try with help of an ABAPer for achieving this.
Thanks
Rama

Input and Output VAT

Dear Friends,
One advise needed.
I have created 2 VAT G/L Accounts via FS00 i.e.
Input VAT ( which is updated in Purchase Process at the time of MIRO )
(ii) Output VAT( which is updated in Sales Process at the time of VF01 )
Both are balanace Sheet accounts.
Now, I have one doubt,
I have created Input VAT G/L with category "ASSETS"
and Output VAT G/L with category "LIABILITIES"
Is this OK from Concept ? Will it cause any error at the time of period closing ?
Please reply.
Reward Points assured.
Thanks.
Regards,
Gaurav Raghav.
Is this OK

Hello Mr.Gourav
Its absolutely fine.it will work.But it should have been only balancesheet grou , insted of both assets and liability separetly.
u can directly go for both as liablity also.
where the Debits and the Credits will automaticaaly setoff.
and the balance will be relfected in the balance sheet
but if ur going to do them separeelt as assts and saparetely as liablity then adjustment need to be done at the time of preparing the financial staement version
Hope it will cleare u
Regards
Anup

What is the standard field in CRM to store the VAT number from ECC

Dear gurus,
I am trying to find if we have "VAT number" as standard field in CRM. I tried finding in CRM but could not find.
The requirement is to bring the "VAT number" data from ECC to CRM.
So if there is any corresponding CRM field to store that then it would be easy. Please let me know if you know of this field in CRM. Thanks for your help in advance.
thanks,
Randhir

Hello Randhir,
In CRM, there is no seperated field to store VAT numbers like in ECC. In CRM, we have a table control TAX NUMBERS on business partners -> identification tab which stores tax numbers.
Below is the way how the tax number flow and work in ECC and CRM for a sample country IT.
In ECC -
On customer master , you will see fields such as VAT reg. number, TAx number1, tax number 2 and so on. Thus when you create a customer for country IT, you enter the required tax numbers.
In CRM -
you enter tax numbers on the identification tab. here we dont find different fields, but there are different tax types introduced for each country. Thus for VAT numbers, the tax type is IT0. This tax type is always of the format - <country ISO code>'0'. Thus for DE we have DE0. The concept of tax type is not there in ECC.
The tax number transfers from ECC to CRM automatically assign a tax type depending on the country and field. And this functionality is available in all CRM systems.
In CRM. tax numbers are stored in table DFKKBPTAXNUM.
Hope this information is helpful.
Best regards,
Rimzhim.

VAT report for Europe

I am generating VAT report S_ALR_87012357 . When invoice document currency (e.g. EUR) is different from the country currency (e.g. GBP) it creates a difference in local currency (EUR) when the VAT report is processed due to the differences of the invoice daily rate and the VAT report daily rate.
Can some one give me lead how to debug this problem ? Can some one send me good link on VAT ( Europe ) please ? I need to clear some fundamental concept of Europ VAT.
Thanks
Satya

Hi,
Yes, the standard report should also be applicable for Finland

VAT for in-house training on non-VAT paying customer

Hi .. Newby here & hoping for a result !
I need to set up a sales order to cover the cost of some training provided in the UK for a customer billed-to in Sweden and therefore usually not subject to VAT. In this scenario, I am advised that VAT is payable however.
I have created a new sold-to partner record with a Tax Classification = 1 in the General tab/Billing Doc tab, and associated Pricing Condition Record, and it correctly calculates the VAT on the order.
My question is, is there a 'slicker' way of doing this either by standard customisation via the IMG or master table settings somewhere, without having to create a another partner record ?
Thanks in anticipation.
Brian

Hi Eric,
I understand your confusion. InDesign Server is a rather esoteric product and was released originally with the concept that it would be provided exclusively by resellers offering custom solutions or software built on the InDesign Server engine. It is not sold in the same way as desktop software.
It appears that whover you spoke to at Adobe gave you incorrect information.
My company, Silicon Publishing, resells InDesign Server and we would be happy to sell you a copy. It is also possible to purchase it directly from Adobe or from other resellers. There is not exactly a "plan" for in-house development, but it is quite common, and in such cases resellers or Adobe simply sell the software without additional custom development or software built on top of it. Many companies have built their own in-house solutions, as the technique of automation is straightforward and well-documented.
Let me know if you have any further questions.
Max Dunn
Silicon Publishing
www.siliconpublishing.com
[email protected]

VAT in CIN- Business Place

Hi,
In VAT, business place concept is there in India. where are the settings for business place is done.
regards

Hi
Business Place is a Tax Reporting entity for an Organization in a State or a Region. Business Place in R/3 will be defined at the Company Code level and will be assigned to Plant(s). One Business Place can be assigned to more than one Plant in a Region, but one Plant cannot be assigned to more than one Business Place.
Define Business Place:
J1IL or J1ILN > SAP Menu > Customization > India Localization Menu > Global Settings > Define Business Place
Assign Business Place to Plant:
J1IL or J1IL(N) > India Localization Menu > Global Settings > Assign Business Place
Regards
Rajesh
Do reward if useful..

Journal Voucher concept in FICA

Hi Friends,
We all know that we have a very good feature in SAP FICO module that is of journal voucher(JV) by using which we can pass any adjustment entry from one
GL to other.
Debit one GL & credit the other.
Now
As far as i know in SAP FICA module there is no concept of JV, since accounting entry is passed from FICA to FICO using Main/Sub Transaction combination using a reco key concept.
We can only transfer document from one BP to other using Transfer Items(FP40).
Is there anyway in which i can pass a JV in FICA module or some workaround for the same.
Ex: In case i want to raise a debit or credit note (special case)
Debit Receivables
To Sales
To VAT
How to handle this scenario in FICA.
Will appreciate if u all can share ur ideas & views on this.
Regards,
Gagan

Hello,
This functionality is not supported in FICA....
Ofcourse when items are posted to clarification, there shall be 2 GL entries
DR Bank Clearing Account
CR Clarification Account
Ofcourse this may not meet your requirement
Rgds
Rajendra

VAT Account Determination

Dear All SD Gurus,
We had assigned GL account for Vat Receivable with introduction of Business Place concept we defined the GL code in view J_1IT030K_V using T code SM30.
My problem is that during Billing the system the GL defined in OB40 & not the ones defined in SM30.
Please help.
Regards,
Deepak

hi,
I am not an SD consultant. but I think your problem is that you have done "Table Maintenance", which is never advisable. There will some T-code which you can check with SD consultant for doing the account determination.
When you do table maintainence in SM 30 all related tables are not getting updated and hence you are facing this problem.
In future also do table maintenance only as a last resort.
Assign points if useful.
rgds
Prasad.

Multiple Accounts in GL Vat Receivable

Hi to all,
We had assigned GL account for Vat Receivable in T code OB40 - Maintain FI configuration : Automatic Posting with description "A/P VAT RM Deductibl" & transaction JP5.
Subsequently with introduction of Business Place concept we defined the GL code in view J_1IT030K_V using T code SM30.
My problem is that during IV the system sometimes picks up the GL defined in OB40 & sometimes the one defined in SM30.
Whats the solution of this problem.
Regards,
Saurabh BAgri

Hi,
In OB09, you can have separate GL accounts for the following.
Exch Rate Diff Realized: Loss
                                         Gain
Valuation:                         Val.loss 1
                                         Val.gain 1
                                         Bal.sheet adj.1
Transalation:                    Loss
                                         Bal.sheet adj.loss
                                         Gain
                                         Bal.sheet adj.gain
But you cannot maintain 2 Bal Sheet Adj Accounts here. I hope Val Gain and Val Loss will serve your purpose.
Regards,
Srinu

VAT rate changes in Ireland on goods from 1st December 2008

Dear SAP Experts,
The standard rate of VAT will be increased from 21% to 21.5% with effect from 1 December, 2008 in Ireland.
This means all IT systems dealing with VAT should be able to cope with that change.
My client is a retail organization and operates in Ireland as well. They have SAP as their main system. Any ideas what is the best way to achieve that in SAP i.e. modify the existing VAT code or create a new VAT code etc etc + implications...
Any help would be much appreciated. If SAP has any recommended approach for dealing this type of situation, please share it.
Thanks and Regards
Sanjeev

Hi,
The recommended approach is to create a new code and not modifying the old one. You can read note 94636 for further info (it concerns Germany, but the concept is the same).
Regards,
Eli

Vat and cst

Hi all
VAT is charged on sales within State.
& CST on sales outside state
Is this correct?, pls explain the general concepts.
regards
Banu

Hi,
VAT -- Value added tax --- applicable to your manufacturing and trading business when you add value and sell. Collected by the state govt. There will be a TIN no. which is like our PAN no. and company has to mention in all documents being used for intra state transfer.
CST -- Central Sales tax--- applicable to sending, receiving goods interstate Collected by the central govt.
There will be a CST no. which is like our PAN no. and company has to mention in all documents being used for inter state transfer.
Goods moved without these numbers in the document are liable to pay penalty which can go to big amounts depending on the value of the goods.
Wrong entry of these numbers in the documents is also liable for penalties.
Best regards,
Sridhar.

VAT Concept

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