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service tax changes in invoice

Former Member
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Hi Expert,

I have invoice in which service tax is getting calculated as 10.3%. I want to bifurcate this as 10% on actual amount and 2% & 1% on 10% amount. Tax code used in it have value for condition type JSE4 is 10 and for condition type JES4 is 3. Could you please tell me how would i proceed for expected result ??...If i'll do changes then will those changes reflect in old invoices also ??


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Answers (3)

Former Member
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VAT Changes and SAP from 1st Jan 2010

General Advice u2013 make sure you do things in a timely manner and if you are not sure, ask

The standard rate of VAT will always be V1 and A1 so until 1st Jan 2010 A1 & V1 are 15% and from 1st Jan 2010 they will be 17.5%

Sales Sales Invoices

NB: All Sales Invoices should be

created not more than 14 days

after the service is provided,

please process immediately the

service/goods are provided

All Sales Invoices processed after January 1st 2010 which attract VAT will be charged at 17.5% (A1).

If you need to charge VAT at 15% you should backdate your Invoice before 31st December if the service

was provided before 31st December. You only have up to 8th January to back date and post your sales


If you need to charge 15% or 2.5% after January 1st please contact Tax Team for advice

Credit Notes When raising a credit note on SAP it should be done with reference to the original invoice, this will ensure

that the VAT will be correct, i.e. if you are crediting an Invoice that was charged at 15% VAT the credit will

automatically credit at this rate.

For invoices raised at 17.5% after January 1st 2010 any credits will be raised also at 17.5%.

Purchases Purchase Orders Purchase Orders with VAT created before January 1st will be produced with VAT at 15%, if you have any

invoices dated before January 1st you should immediately raise Purchase Orders for them.

If you receive invoices in January at 15% that you do not have a Purchase Order for, please create using

the VAT code VWwhich will charge VAT at 15%.

Goods Receipt Goods and services receipted with VAT before January 1st VAT will be calculated at 15%.

Goods and services receipted after January 1st PO raised before January 1st will be receipted at 15%.

You need not be concerned if the invoice arrives at 17.5% it will be posted at 17.5% and SAP will

automatically adjust the posting so that VAT is posted at 17.5%. If the invoice arrives at 17.5% for goods

and services wholly or partly delivered before 01/01/10 you may be able to request the supplier to

invoice at 15% (refer to VAT guide or Tax Team)

Invoices Invoices received before January 1st at 15% will be processed as normal, you need not do anything

different but you must forward these to Accounts Payable immediately.

If goods/services received wholly or partly before 1st January should be invoiced at 15%. Please refer to

detailed notes from Tax Team. Accounts Payable to process using tax code VW if posted into period 6 and

this information is help full to reslove the issue.


Active Contributor
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If you are using TAXINN procedure then you must create condition records for 10% and 2% and 1% for appropriate Service Condition types.

Former Member
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Thanks for reply ..

could you please tell me steps to do the procedure you have mentioned....

Active Contributor
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Identify the condition types for service conditions 10%, 2%, and 1% and maintain condition records using FV11 transaction code with key combination Tax classification (here you will selected country and tax code combination)

Former Member
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In FV11 currently 10% is maintained in JSE4 and 3% is maintained in JES4. Now as i want to split it as 10%, 2% and 1%. Do i need to change JES4 to 2% and create new condition type for 1% ?? ...if so please guid me how to do the same ??


Former Member
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Do the setting in OBQ3(check calculation procedure)

100 0 BASB Base Amount

110 0 MWAS Output Tax 100 MWS

120 0 MWVS Input Tax 100 VST

140 0 MWVN Non-deduct.Input Tax 100 NAV

150 0 MWVZ Non-deduct.Input Tax 100 NVV

200 0 NLXA Acquisition Tax Cred 100 ESA

210 0 NLXV Acquisition Tax Deb. 200 ESE


Srinivas Muthyala