Export Tax code

[Former Member]

Hi!

My question is about tax codes applied to exports.

For foreign customers my client does not apply any tax because they are exempt. So the tax code to apply should not generate any accounting posting at the time of billing.

Which tax code should I use?

Regards.

Eduardo

[Lakshmipathi · Accepted solution]

Dear Eduardo

For information, tax codes will be created in FTXP with the combination of origin country and tax code and these will not have any accounting impact unless the respective condition type is not checked for Statistical.

For exports, just create a tax code in FTXP and dont maintain values there. Just save it. Now go to VK11, input UTXJ and maintain for the combination of

- Origin Country

- Destination Country (Ship To party)

- Customer Tax Class (Ship To Party)

- Material Tax Class

For the above combination, you have to check in V/07 for condition type JIND where the table 11 should have been maintained.

thanks

G. Lakshmipathi

[Former Member]

Dear Eduardo

Maintain the Tax conditions in your export pricing procedure in statistical mark. So no entries passed into accounting irrespective of Taxcode.

Try create a new taxcode with zero tax rates. I am not sure how the system will work. Please ldo et me know how the system behaves

Regards

Deepu Pillai

[Former Member]

Thanks for your answers, they were very helpful.

Deepu, what I finaly did is using tax code Y0 (Output tax on export 0%) which doesn't generate any accounting posting.

Regards.

Eduardo

[Former Member]

As the taxes are exempt and not applicable, do not trigger any tax code in the sale order.

Regards,

GSL.