1864731 - The Tax Calculated for a Service Product is Incorrect if the Ship-to Party is the Contact of Account (EU Tax Scenario)

SAP Knowledge Base Article - Public

1864731 - The Tax Calculated for a Service Product is Incorrect if the Ship-to Party is the Contact of Account (EU Tax Scenario)

Symptom

The tax calculated is incorrect for a service product if the Ship-to party is the Contact of Account.

Note: This case document deals with the EU specific tax scenario.

Reproducing the Issue

  1. Go to the Sales Orders work center.
  2. Select New Sales Order from Common Task.
  3. Add the account ABC in the sales order (ABC represents the ID of the account).
  4. Add ship-to party XYZ (XYZ is the contact maintained under account ABC).
  5. Go to the Items tab of the sales order and add a service DEF (DEF represents the ID of the service).
  6. Select the Taxes subtab.
  7. The tax calculated is for the Ship-to country.
  8. If you change the ship-to party from the contact XYZ to account ABC then the tax determined for the ship-to country.

However, since both contact and account belong to same country, you expect same tax determination while keeping any of them as ship-to.

Cause

The tax determination logic in the system differs if a ship-to party is not a company:

  1. If you select contact XYZ as ship-to, then the condition Is Service Recipient is company? becomes False -> hence the tax is determined for domestic country.
  2. If you select account ABC as ship-to, then the condition Is Service Recipient is company? becomes True -> hence the tax is determined as EU sale of services, reverse charge which determines ship-to country as tax country.

Resolution

This is the expected behavior of SAP Business ByDesign.

Keywords

KBA , AP-BP-BPT , Business Partner Template , How To

Product

SAP BUSINESS BYDESIGN 1708 ; SAP Business ByDesign 1302 ; SAP Business ByDesign 1305 ; SAP Business ByDesign 1711 ; SAP Business ByDesign feature pack 4.0