1528596 - How To Create Supplier Invoices Without Import Tax Calculation On Items for a Supplier Abroad (as default).

SAP Knowledge Base Article - Public

1528596 - How To Create Supplier Invoices Without Import Tax Calculation On Items for a Supplier Abroad (as default).

Symptom

You want to invoice items from a supplier abroad for resale. You want to make the products exempt of tax by default when you enter them in the invoice.

Reproducing the Issue

1. Go to the Supplier Invoicing work center.
2. Select the New Invoice Without Purchase Order link under the Common Tasks section.
3. Select a non domestic supplier and add a line item.
4. Select the View All button.
5. Go to the Items tab and then the Taxes subtab.
6. The Tax Code is defaulted to 'Import use tax'.

Cause

This is the desired standard behavior of the system. The purchaser is supposed to adjust the Tax Code manually. The determination of the tax code is a best guest from the system and should be checked. However we can propose a solution for some products to prevent the tax calculation.

Resolution

A. First, you need to maintain non-standard tax rates (Exempt) for the products:
1. Go to the Product Data work center.
2. Go to the Materials view.
3. Select the relevant material and press the Edit button.
4. Go to the Purchasing tab.
5. Select the Maintain Non-Standard Tax Rates checkbox.
6. Select your country and the Tax Rate Type as 'Exempt'.
7. Press the Save and Close button.


B. Then you need to define a tax code for this particular tax event:
1. Go to the Business Configuration work center.
2. Go to the Implementation Projects view.
3. Select Show: All Open Projects.
4. Select the relevant project and press the Open Activity List button.
5. Select the Fine-Tune chevron.
6. Select the Tax on Goods and Services activity and press the Open button.
7. Select the Define Tax Codes link.
8. Select the Add Row button.
9. Enter the tax event that is related to the import of goods from abroad. Enter your country, a tax code, a description, a validity period.
10. In the Details section, press the Add Row button.
11. Enter the relevant Tax Type and Tax Rate Type as 'Exempt'.
12. Press the Save button.

Note: You might have previously maintained a Tax Exemption on the supplier record (Financial Data tab, Tax Data subtab) to solve the issue. However this is not necessary.

 

Keywords

KBA , AP-SIP , Supplier Invoice Processing , How To

Product

SAP Business ByDesign all versions