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#COE #BA01 Exempt Billing Line Item Scenarios in Brazil

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Typically in billing in all of our other localizations we have the ability to make a material or customer exempt from tax within the master data and document. We've found that with Brazil we do not have this flag available within the material and transaction line item level, so how do we do this with the old standard (J14) process as wells as the new standard process for Project Billing (4E9)? Our clients are not always exempt or taxed there are situations where a customer who would normally would be liable for tax should be exempt for a specific transaction or line.

The scenarios we use in Brazil for billing our clients fees and expenses are as follows:

Billing ScenarioBilling OfficeCustomer OfficeTax
Fees Only Brazil BrazilYes ISS, PCC, IR
Fees Only Brazil ExportExempt or just ISS*
Expenses Only Brazil BrazilExempt
Expenses Only Brazil ExportExempt
Fees and Expenses Brazil BrazilTax fees only ISS, PCC, IR
Fees and Expenses Brazil ExportExempt or just ISS*
Customer Expense Reimbursements Brazil BrazilExempt
Customer Expense Reimbursements Brazil ExportExempt

Guidance on how to do the exempt and blended scenarios would be appreciated as there is no detail on how to configure this in S/4HC or how to communicate this to an external tax vendor with the limited information in the XML.






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Product and Topic Expert
Product and Topic Expert
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Hello Ryan,

Please check if following post is helpful,

Best Regards


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Hi Dave - Thanks for the reply, we're already aware of that Brazil documentation, it doesn't address the scenarios listed above.