2562619 - Tax Item of Doc. of Type Customer Invoice, Event Domestic Sale of Service And Rate Zero Not Assigned to Box

You execute a VAT return run which finishes with an error: 'Tax item of doc. ABC (ABC represents the document ID) of type Customer Invoice, event Domestic Sale of Service and rate Zero not assigned to box.'

SAP Business ByDesign

To check the initial error:

1. Go to the Tax Management workcenter.
2. Navigate to the Periodic Tasks view and select VAT Return Runs.
3. Select the erroneous run (Overall Status RED) and click on the Application Log ID to open the log.
4. In the log navigate to the Results tab.
5. Here the error 'Tax item of doc. ABC of type Customer Invoice, event Domestic Sale of Service and rate Zero not assigned to box' appears.

To check the customer invoice item which the error message is referring to:

1. Go to the Customer Invoicing workcenter and navigate to the Invoice Documents view.
2. Find invoice ABC and press Edit to open it.
3. In the new screen press View All and go to the Items tab.
4. Find and select item ABC-XX (ABC-XX represents the Customer Invoice item ID) and navigate to the Taxes sub-tab.
5. You can see the Tax Country ZZ (ZZ  represents the country' country code) and a Tax Data.
6. There is no Tax Code maintained. However, in the Tax Details tab a VAT Tax Rate of 0% is maintained.

To check the Product Master Data:

1. In invoice item ABC-XX click on the product ID XYZ  (XYZ represents the product ID).
2. In the new screen press View All and go to the Taxes tab.
3. For Country ZZ a Tax Exemption reason with Tax Rate Type 2-Zero is maintained.

Even though no Tax Code was derived for Customer Invoice item ABC-XX the system was able to derive the Tax Event Domestic Sale of Service and Tax Rate 2-Zero from the Tax Master data maintained for Product XYZ. However, for this tax event no tax rate 2-Zero is maintained in Fine Tuning.

Maintain the Zero tax rate type for Tax Event  Domestic Sale of Service:

1. In the Business Configuration workcenter go to the Fine Tune activity: Tax Returns for Goods and Services – {Country} ({Country} represents the country name) (either via the First Implementation Project's Activity list or via the Business Configuration Overview.)
2. Click on the Product Tax Return {Country} link.
3. In the new screen select Tax Return Type 1-VAT Return.
4. Then go to the TAX Event sub-tab.
5. Find Tax Event 350-Domestic Sale of Service.
6. Here, only Tax Rate Type 1-Standard is maintained.
7. Press Add Row and maintain a Form box entry for Tax Rate Type 2-Zero.
8. Press Save and Close.

Execute the VAT run again. This time a VAT return will be generated.

KBA , SRD-FIN-TAX , Tax Management , Problem