Sales equlization Tax for Spain

[Former Member]

We are implementing ECC 6.0 in our Spain location. How do we set up VAT and Equalization Tax (also called Recargo de Equivalencia). FI tax procedure TAXES contains MWAS (Output Tax) and MWAA (Clearing Tax). Tax rates for full tax are VAT = 16% and Recargo Tax = 4%.

Should SD pricing procedure have two tax condition (MWST and another)?

Do we need to create condition master data (VK11) for new condition?

If anyone is familiar, please confirm set-up for Output tax for Spain.

Thanks,

MJ

[Lakshmipathi · Accepted solution]

Dear MJ

May be this link could be of helpful to you

[Spain|http://help.sap.com/saphelp_47x200/helpdata/en/b0/d31278bf2811d2954b00a0c929f4c9/frameset.htm]

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Thank you for the link. However, I have already reviewed this.

When I review TAXES Finance tax procedure, I see the Output Tax and the equilization tax (Recargo tax).

In SD pricing procedure, I have two tax conditions : MWST (VAT) and ZREC (custom tax condition for Recargo tax). I expected that by setting up MWST tax condition master data with the proper tax code, the SD pricing procedure would invoke the FI tax procedure, and have the MWST rate returned (16%) and the Recargo tax rate returned (4%).

Instead, I had to set up tax condition master data for MWST and ZREC with the proper rates. The same customer master tax classification and material master tax classification is used for both MWST and ZREC. So there is less maintenance for customer and material master data.

I have been able to apply the proper tax rates in the sales order. However, I just wanted to verify that the configuration setup is correct.

thanks,

MJ