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Export taxes vs Domestic taxes

Katalin_Csengőd
Product and Topic Expert
Product and Topic Expert

Hi All,

This query was raised with me today and I have added the answer here in the community in case our community users have similar questions.

Why is in some cases for the same departure and destination country different tax determined?

Accepted Solutions (1)

Accepted Solutions (1)

Katalin_Csengőd
Product and Topic Expert
Product and Topic Expert

Export business exists if the country of departure and the destination country are different.

If these countries are members of the EU, the system additionally checks if a VAT registration number (VAT no.) exists. In this case, the export access is relevant only if a VAT no. exists.

If no VAT no. is found, export access is NOT relevant.

Instead, the access to domestic tax should be successful.

If the country of departure and destination country are EU member states and the VAT no. is not available, this represents a domestic business.

If the countries are not EU member states, and country of departure and destination country are the same, the condition access to domestic tax is relevant.

WouterVdBr
Participant
0 Kudos

Hi Katalin,

The check on VAT no., is it country-dependent? So does there need to be a VAT no. in the tax destination country or is it a a general check that there needs to be at least 1 VAT number (regardless of the country)?

Thanks in advance

Wouter

Answers (3)

Answers (3)

former_member728975
Active Participant
0 Kudos

Hello community,
This KBA explains how indirect tax is determined in Sales Billing in S/4HANA Cloud:
3308072 - Output tax determination in sales billing - SAP S/4HANA Cloud

Thank you.

Iza

Katalin_Csengőd
Product and Topic Expert
Product and Topic Expert
0 Kudos
Katalin_Csengőd
Product and Topic Expert
Product and Topic Expert
0 Kudos

SAP Note 872449 - Tax determination in Sales and Distribution

https://launchpad.support.sap.com/#/notes/872449

This note has been created for on premise solution, yet the logic is the same in SAP S/4HANA CLOUD 2002