Sales tax to be applied as per ship to country

[aanand_2106]

Hi Experts,

I have scenario, Sales order is created in US Sold to Party and ship to Party is in other country. Ex. Canada

In this scenario business explains that tax should be applicable as per Ship to country not as per the US sold to party/Supply plant and country. 

I tried to run test case keeping Ship to customer as Canada, but system picks tax from US, as tax determination will be triggered for US as supply plant and supply region combination.

Has anyone come across such scenario then please let me know how this can be setup. Or is it regular scenario for Tax to be picked as per ship to country. 

I have checked RITA is not available in US and CANADA.

Looking forward for valuable inputs.

PS: I am new to US tax scenarios.

SAP S/4HANA Cloud Public Edition Sales SAP S/4HANA Cloud Public Edition Finance 

Anand

[YIngrid]

Hello, I invite you to check the configuration point:

SAP Customizing Implementation Guide->Sales and Distribution->Basic Functions->Taxes->Maintain Determination of Value-Added Tax Registration Number

[aanand_2106]

Hi,

Thank you for reply, I have changed setting to C and entered Tax Departure country CA and Tax destination CA at Sales order header.

Maintained condition record for UTXJ as for combination of Departure country/Destination county/Tax classification customer/Tax classification Material/rate/Tax code

got below error at the time of Invoice creation.

Tax code SH in procedure TAXUSJ is invalid,

Does it mean, Canada tax codes to be added in US procedure to achieve this.

Anand