SAP VAT

1. Adding VAT Codes
   

1. Check Calculation Procedure
   

• Tcode: IMG - Financial Accounting- Financial Accounting Global Settings- Tax on Sales/Purchases- Basic Settings - Check Calculation Procedure – Define Procedure
  
• Tcode : OBYZ
  
• Explanation:
  • Copy tax procedure TAXGB. Change it to TAXIN
    
  • These are standard Tax calculation procedure provided by SAP.
    

1. Assign Country to calculation procedure (Check country assigned to a tax calculation procedure)
   

• Tcode: OBBG
  
• Tcode: IMG - Financial Accounting- Financial Accounting Global Settings- Tax on Sales/Purchases- Basic Settings - Check Calculation Procedure – Assign country to calculation procedure
  
• Explanation:
  • Each country has a tax calculation procedure assigned to it.
    
  • Here we can check what tax calculation procedure has been assigned to the concerned company code.
    

1. Check Access Sequences, Tax Condition Type
   

• Tcode: OBYZ
  

1. Tax Jurisdiction structure
   

• Tcode: OBCD
  

1. Sales & Use Tax Automatic assignment
   

• Tcode: OB40
  

1. Define Tax codes for Sales and Purchases
   

• Tcode: IMG - Financial Accounting- Financial Accounting Global Settings- Tax on Sales/Purchases- Calculation – Define tax code for sales and purchases
  
• Tcode: FTXP
  
• Explanation:
  • Here we define the tax rate for the tax code. Also map the G/L account to which tax amount postings are made
    
  • Easiest way to create a new tax code is to copy the existing tax code whose tax rate has to be changed in FTXP. Change description & rate
    

1. Steps in SAP for creating a new VAT code : EMEA
   

(For Company code 730 Neon & reporting country XX say PT (say tax procedure TAX_NB):

1. Check for the gaps in the table T007A for the new tax code to be created. (We need to check that a 2 digit tax code can be created, & it does not exist already)
   
2. Go to Tcode FTXP. Copy from the existing tax code, change the %, change the description, check the account mapping & save the new tax code
   
3. Please note the following before creating the tax codes
   

Tax procedure	Tax code	Transaction Key	Account
TAXAR	1V	ESA	10002001
		ESE	10002002
TAXPT	1V	MWS	20001065
TAX_NB	1V	VST	11005000
Different	Same	Should be same

1. In different tax procedures, same tax code can be created. However the mapping of Transaction Key& Account should NOT change.
   
   1. For example:
      
   2. Tax code1V can be created in Tax Procedure TAXAR, TAXPT & TAX_NB. However, Transaction Key VST = 11005000 in all the tax procedures.
      
2. Never change an existing account mapping as that will affect countries which are already using that code
   
3. A tax code like 1V can have different tax rates in different tax procedures but ACCOUNT MAPPING remain the same. To check all tax rates used for a tax code use report S_ALR_87012365
   

1. VAT new Tax code Creation Business Process:
   
2. A Kintana is always required.
   
3. Approval should be taken from Winco Rebergen before creating any tax code.
   
4. We first create the tax codes in PSQ and ask the user to test them in PSQ. At testing stage also, Winco Rebergen, Florence ten Cate and Matti Uoti should be kept informed.
   
5. Once user tests the tax codes successfully, attach the sign off to the Kintana, create the new tax codes in PRD and inform all the parties mentioned above.
   

1. Advance Return for Tax on Sales/ Purchase
   

• Tcode: S_ALR_87012357
  
• Explanation:
  • Page 1 shows totals for Output tax by Tax Code.
    
  • Page 2 shows totals for Input tax by Tax Code.
    
  • Page 3 shows totals for each company code selected, by Tax Code.
    
  • Page 4 shows totals for all company codes selected, by Tax Code.
    
  • It is necessary to clear the amounts in the Tax Clearing account to ensure that the tax payable/receivable to Accounts Payable or Accounts Receivable, is created in order to be paid via the automatic payment program (F110) or paid and cleared via the Incoming Payments (F-28) procedure. Although the above procedure calculates and posts the tax payable/receivable to the tax payable/receivable account, this account needs to be cleared and paid.
    
  • The tax payable/receivable Account is managed as 'Open Item' and as such a clearing procedure needs to occur in order to pay the values to the Statutory Authorities. Therefore, the value of Tax to be paid needs to be identified. This can be achieved by an inquiry on the tax payable/receivable account in the general ledger by posting dates and unclear items.
    

1. Tax Posting (AP/AR)
   

• Tcode: FB41
  

1. VAT Configuration
   

Tax on Sales/Purchases
	Description	Tcode
Basic Settings
Check calculation procedure	Check calculation procedure - condition types	OBQ1
Check calculation procedure	Check calculation procedure - access sequences	OBQ2
Check calculation procedure	Check calculation procedure - procedures	OBQ3
Check country assigned to calculation procedure		OBBG
Check and change settings for tax processing		OBCN
Fiscal Regional Codes	Define fiscal regional codes for Italy/Spain	OBAD
Fiscal Regional Codes	Define fiscal regional codes for other countries	OBAE
Calculation
Define taxes on sales/purchases codes		FTXP
Specify base amount		OB69
Posting
Define tax accounts		OB40
Define account for exchange rate difference posting		OBYY
Allocate tax codes for non-taxable transactions		OBCL

1. Configuration steps : Basic Settings, Calculation, and Posting
   1. SAP uses condition types (e.g., MWAS sales tax and MWVS input tax) as the basis of a calculation procedure, which enables integration between the SD, MM, and FI modules.
      
   2. Create an Access Sequence (MWST Tax Indicator) and underneath it an access code (10 (Table 3) Tax Code).
      
   3. Create a calculation procedure for each country or jurisdiction for which you need one (for example, TAXF = sales tax for France and TAXIT = sales tax for Italy). Behind this you put a control procedure, which defines the calculation steps (TAXF).
      
   4. Procedure TAXF Sales Tax – France:
      

Steps	Control	Condition Type	Description	From
100	0	BASB	Base Amount
110	0	MWAS	Sales Tax	100
120	0	MWVS	Input Tax	100
140	0	MWVN	Non Deductible input tax	100
150	0	NLXA	Acquisition tax credit	100
160	0	NLXV	Acquit ion tax debit	150

1. Next assign a country to a calculation procedure (AT Austria = TAXAT).
   
2. Check and change settings for tax processing as follows:
   

Process	MWS
Text	Output Tax
Tax Type	1 Output Tax
Not deductible	Not used here
Posting indicator	2 Separate line item

1. Define tax codes, which will be used in transactions. (Tcode: FTXP)
   

Country key	FR
Tax code	D1
Procedure	TAXF
Tax Type	V
Behind the VAT code define its properties
Tax code	D1 Deferred input tax - standard rate 19,6%
Tax Type	V Input tax
Check	Select if SAP to check calculation
Target tax code V1	This tax code transfer input tax to code V1 when related invoices area paid
Assign GL a/c to the tax code	Tcode FTXP / OB40. Maintained in table T030K When entering tax codes with no tax rate, entering 0 rate allows accessing them. Also need to assign GL a/c to these tax codes.

1. Finally, tax codes have to be allocated for non-taxable transactions, outside the scope of VAT (e.g., general ledger journal entries between accounts which require a valid tax code) – e.g.:
   
2. Input VN and Output AN. The codes are created in the normal way first, but with a zero percentage rate. Use Tcode OBCL to jump directly to where these tax codes are defined.
   
   
   
    
3. VAT Return configuration
   
4. When configuring VAT processing it is also necessary to maintain Table TRVOR (with transaction code SM31) and enter the company code and fiscal year against the ABAP which runs the advance tax return (e.g., RFUMSV20 for Italy and Spain prior to Release 4.6C) and against the ABAP which runs the document journal (RFBELJ10). Otherwise the report will not run and the error report does not tell you much except to point you towards Table TRVOR.
   
5. This table links the company codes to the ABAP used to run the document journal RFBELJ10 and to the ABAP used to generate the advance tax return RFUMSV00 (and previously RFUMSV20). It is essential to maintain it or the advance tax return will not run.