SAP Knowledge Base Article - Public

3023932 - Tax Determination for Tax Country Canada is Not as Expected

Symptom

The Tax Code 511 - Regular HST Sales is determined in a Sales Document for the Tax Country Canada. You expected that the Tax Code 501 - Regular GST Sales is determined.

Environment

SAP Business ByDesign

Cause

The Account is located in ON - Ontario. Hence, in the Sales Document the Tax Country Canada and Tax Region ON - Ontario is determined.

When you check the Tax Trace in your system you can see that the Tax Trace parses as false for GST the question because of the region ON – Ontario.

The region ON - Ontario is applicable for HST but not for GST as per the decision tree parameters.

Only a very limited number of products such as child clothing are applicable with 5% GST. Since, a majority of products/services are applicable for HST, the tax decision tree will determine the Tax Code 511 - Regular HST Sales.

Resolution

This is the expected system behavior.

You can manually change the Tax Code to 501 - Regular GST Sale should the product be applicable for GST.

See Also

2427419 - How to use Activate Tax Trace

Keywords

511; 501; Tac Code; Tax Determination; Canada; Ontario; GST; HST , KBA , SRD-FIN-GLO-TAX , GLO - Tax Declaration , AP-TTE-GLO , Cross-Country Extensions , Problem

Product

SAP BUSINESS BYDESIGN 2105 ; SAP Business ByDesign 2011 ; SAP Business ByDesign 2102