Purchasing tax for Canada import

[Byrtule]

Hello, 

we did set all the taxes for Canada's jurisdictions, but we were not able to find the place, where to set rule for imports from USA as non taxable. 

We have two plants in Ontario and Quebec, so we have set two tax code plus one as Tax exempt. As taxes are set according to ship to address, we always see Ontario or Quebec taxation. 

Any idea, how to set Tax exempt for all orders coming from US Supplier?

We have S4HC public

Thank you

Lucie

[Chuma]

Hello Lucie,

Thank you for the feedback 

There is no SSCUI that directly defines "imports", instead, use

• SSCUI 103322 to maintain the tax rate,

Make your access sequence and condition table include the Import/Export Indicator (TSTL) to make import-specific rates work.

With regards

Chuma

[Chuma]

Hello @Byrtule 

In SAP S/4HANA Cloud Public Edition, the “Manage Tax Condition Records” app is unavailable. I apologise for my previous comment.

Instead

• Use SSCUIs via “Configure Your Solution” for tax setup (e.g., tax codes, condition types)
• SAP delivers and maintains actual tax condition records (like rates); you can’t edit them directly
• For changes, raise a CBC request (during setup) or an SAP support ticket (after go-live)
• External tax engines (e.g., Vertex) manage tax externally, but you mentioned this doesn’t apply

Let me know if you need further assistance

Chuma

[Byrtule]

Hello Chuma,

actually as a Global process expert, I do have access to the config environment. So I am able to change tax rates, as I am also the one, who set them.

We already have Tax code with zero tax created, so now I am only looking for the place, where I can set this Tax exempt code for imports.

In Set tax rate purchasing, we have set the country and region for our relevant regions, but there its only within Canada.

Any idea or SSCUI, where we can define imports?

Thank you

Lucie 

[Chuma]

Hi Lucie,

To make U.S. imports non-taxable in S/4HANA Cloud Public Edition,

• Create a tax code (e.g. I0) with 0% rate for import purchases.

Please ensure the product tax classification supports exemption if it's part of your condition setup.

This ensures Canadian taxes don’t apply to U.S. suppliers even though the ship-to is in Ontario or Quebec.

SAP Help References 

Tax Determination in Purchasing – S4HC

SSCUI 100297 – Define Tax Codes for Sales and Purchases

Let me know if you're using any third-party tax service (like Vertex or Avalara), as the logic may differ.

With kind regards

Chuma

.

[Byrtule]

Hello Chuma,

Thank you, but I cannot see the app Manage Tax Condition Records.

Should this one be available for S4HC public?

We are not using external tax engine for this particular plant.

Thank you

L.