VAT getting calculated even though it is zero%

Hi Friends,
I have problem related to VAT in my contract. As per requirement VAT gets calculated based on the customer region and the same has been maintained as 5% in VK11 and incorporated in the pricing procedure.
However when I change the VAT to 0% in contract manually and do the billing, VAT still gets calculated and shows in the billing document. Don't know from where the VAT is coming even though the VAT is 0% in contract.
Can someone please help.
Regards,
Wasim.

Hi,
If the VAT has changed from say 15% to 0%, you should not manually change it in the sales order. Instead you have to change the condition record in VK12 and then reprice the contract so that the actual value is calculated once again.
Generally tax condition types are cofnigured in such a way that manual update is not possible. This is done in V/06 for the condition type. Because of this, though you change it to 0% in contract, it is again getting redetermined and 15% comes. This is the expected behaviour in SAP.
Also, if you are creating invoice and you dont want the pricing to be redetermined you have to configure the pricing type in copy control in the tcode VTFA (Order related billing.)

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