In this blog post you will get to know about How VAT is calculated in EU Countries in Sales Order. 

 

Usually in sales process where in VAT is to be determined in the EU countries. it is observed that below are the common issues faced by many customers in access sequence determined as Domestic and Export

 

Ø  Domestic Access seq is picked instead of Export

Ø  Tax access sequence is not picked, or wrong amount is calculated

Blog Applicability

 

SAP S/4HANA Cloud Release

2005

 

Target Audience

Business Users, Key Users, Consultants

Target Industry

Any

Business benefit

 

·       Faster resolution of TAX issue in sales document

·       How system check the TAX access sequence in pricing  

·       Ease of monitoring correct tax value  

Issue details

 

Ø  Domestic Access seq is picked instead of Export

Ø  Tax access sequence is not picked, or wrong amount is calculated

 

Tax access sequence is calculated wrong, the probable reason for the same is the access seq picked is not correct, go to the pricing analysis and check the access seq is correct or not (Domestic or export) , mostly the when doing sales in EU countries

 

Solution

Sales Document pricing system checks Additionally the VAT registration no in case of EU countries sales, so if the VAT registration no is not maintained then system will consider the same as Domestic access seq based on requirement 007 and 008.

If VAT registration no is maintained than export access seq is captured based on routine 008

Screen shot of TAX access sequence – MWST / TTX1 etc.


 

Example:

 

BP is not updated with VAT Registration no

 


 

Now sales order needs to be created and access seq to be checked in analysis.

 

Domestic Access seq is picked as show above.

 

Now update the BP with VAT registration no

 



 

 

Now create the sales order and check the pricing analysis.

 

 

 

Now in this case the Export Access seq is picked as show above.

 

The concept is same in Cloud and on premise both.

 

Related SAP Note / Links

 872449 – Tax Determination in Sales and Distribution