SAP Knowledge Base Article - Public

1834512 - The Tax Code for Tax Exemption is not Selected Correctly in your Sales Document

Symptom

The tax code for tax exemption is not selected correctly in your sales document.

Reproducing the Issue

pre-requisite : You have created the sales quotes XYZ (XYZ represents the identification of a sales quote), the Account/Buyer ABC (ABC represents the identification of your account) is located in UK. The Seller party is located in Germany and the Ship-from party is also located in Germany.

In the account master data, you have maintained a Tax Exemption as follow :

  1. Go to the Account management work center.
  2. Go to the Account view.
  3. Select the account ABC.
  4. Go to the Financial Tab.
  5. Select the Taxes sub tab.
  6. Go to the Tax Exemption.

Country GB - Tax Exemption reason : 7 - Supply Between VAT Group Members AND 8 - Exemption due to Business Partner

Steps to reproduce the issue :

  1. Go to the New Business work center.
  2. Go to the Sales Quote view.
  3. Select the Sales Quote XYZ.
  4. Go to the Items Tab.
  5. Select Item 10 > Tax Sub-tab.

You can see that the Tax Country is Germany, the tax code 501 - Domestic Supply (Standard Rate) and no tax exemption were applied.

Cause

In a Sales Document where the Ship-from party is Germany and the Ship-to party is UK (or any other country in EU); the tax country will be defaults to DE - Germany. In order to have a tax exemption, you should create a tax exemption for the country Germany in the account master data.

Resolution

  1. Go to the Account management work center.
  2. Go to the Account view.
  3. Select the account ABC.
  4. Go to the Financial Tab.
  5. Select the Taxes sub tab.
  6. Go to the Tax Exemption.

Choose the country of the Ship-from party (DE-Germany in our example) and one of the following tax exemption :  7 - Tax Exempt According to §4, Nr. 7 UStG or 1 - Tax Exempt According to §4, 2 - 6 UStG. Once you have save your account master data the correct tax code should be triggered in your sales document with account ABC (e.g 513 - Exempt According to §4, Nr. 7 UStG if you have maintained Tax Exemption : 7 - Tax Exempt According to §4, Nr. 7 UStG).

Keywords

KBA , AP-LP , Lead Processing , How To

Product

SAP BUSINESS BYDESIGN 1705 ; SAP BUSINESS BYDESIGN 1708 ; SAP Business ByDesign 1302 ; SAP Business ByDesign 1702 ; SAP Business ByDesign 1711 ; SAP Business ByDesign feature pack 4.0