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Tax classification

Former Member
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What is Tax classification in customer master , sales, billing and where we can maintaining the spro settings


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Answers (6)

Answers (6)

Active Contributor
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Hi Suresh

For domestic customers, they are liable for tax and we need to raise the invoice with tax. For export customers, they are exempted. So for all domestic customers, in Customer Master -> Sales area -> Billing document, we need to put 1 in JTX1 to JTX4 and for export customers, this will be zero.

In spro setting, go to Sales and Distribution -> Basic Functions -> Taxes. Here you need to configure according to your process.

Reward me if this helps you.


G. Lakshmipathi

Former Member
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Hi dear,

By maintaining the tax classification for the customer master record one can identify that wheather the customer is liable for the tax like VAT or state sales tax or not & during pricing, the system calculates any relevant taxes by taking the

following factors into account:

The tax classification of the customer and the material

The country keys of the customer and the delivering plant...

& as the tax classification key is only maintained in Masters only (Customer master & Material Master) there no any setting available in is only country key of Plant while defining the plant which will be used to calculate the tax for that material....

hope it helps u..

reward points if useful



Former Member
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Tax master data is maintained both in Customer master as well as Material master which reflect on sales doc or billing doc.

U can maintain in SPRO>SD>BF>Taxes>Define Txa Relevancy of Master Records i.e <b>OVK3</b> and <b>OVK4 </b> For Customer and Material tax

Former Member
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hi suresh

1.Tax classification for customers is valid for each sales area- This you will maintain in cust master

2.Tax classification for materials is valid at the level of sales organization/distribution channel/plant.- This you will find in material master

Tcode:ovk3/ovk4 here you will define the tax classi

rewards if helpful


Arun prasad C R

Former Member
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Former Member
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tax classification in CMR is whether the customer is liable for tax or exempted

in ovk3 maitntain them

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prashanth goud

Former Member
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where we can maintain values of liable for tax or exempted