tax jurisdiction code

[Former Member]

hi,

in cust master in general data tab we have Tax Jurisdictn field what is teh use of this field

from US taxation procedure.

[Former Member · Accepted solution]

Hi there,

> in cust master in general data tab we have Tax Jurisdictn field what is teh use of this field

> from US taxation procedure.

There are various mandatory taxes has to be give as per the legal laws in any countries. Tax jurisdication code Specifies the tax authority to which taxes must be paid.

We maintain this always for the city to which the goods were delivered.

For example : When you are sending goods from Atlanta to San Fransisco then the Jurisdication will be of San Fransisco's customer.

We maintain jurisdication code

SPRO > Financial Accounting Global Settings > Tax on Sales/Prchases > Basic Settings > customize transactions about Jurisdictions

Thanks,

Raja

[Former Member · Accepted solution]

HI

1 Still i'm not clear on exact need for maintaining tax jurisdiction code

2 pl also let me know for US how tax determination will hapens is it based on tax codes

[former_member1091983 · Accepted solution]

Hi,

Check this link

http://help.sap.com/saphelp_40b/helpdata/EN/4f/71e57f448011d189f00000e81ddfac/content.htm

Reg

JJ

[Former Member · Accepted solution]

> 1 Still i'm not clear on exact need for maintaining tax jurisdiction code

Let me try Again

See In some countries, such as Brazil, India, Canada, and the USA, sales tax is paid at local level as well as national level. To reflect the multilevel local tax levels in addition to the national taxes in the tax calculation, the jurisdiction code is used in addition to the tax code.

A jurisdiction code used in countries like USA is a combination of the codes defined by TAX AUTHORITIES. Upto 4 Tax Levels could be defined below the Federal Level as folows :-

1.Sub city level

2. City level

3.Country level

4.State level

> 2 pl also let me know for US how tax determination will hapens is it based on tax codes

See Tax codes will be maintained based on the jurisdication code for the respective Tax condition types

we maintain Condition records which will be maintained for UTXJ condition type with respective tax codes

These Tax codes will come into picture when we create sales order based on the logic which we maintain in the Pricing procedure control data.

Hope it will help.

Thanks,

Raja

[Former Member]

sdquest sd san,

Hello.

As Raja san ('san' means Mr./Mrs. in japanese) wrote, tax jurisdiction code is a field for USA and so on.

Additionally,,,,,,,

if you/your client don't need calculate sales tax exactly on SAP for those countries, you don't have to set up tax jurisdiction.

Please talk with youf FI consultant.

[premise1]

in USA, CANADA.....the country where VAT(sales tax) should be calculated for city or state level, the field may be useful.

in other countries where VAT should be calculated just for the national level(Japan, Germany,,,,), you don't need to set up.

[premise2]

in USA and so on,,,,

Do you/client need to calculate VAT on SAP ?

If 'Yes', you and FI Consultant should customize tax procedure prudently.

If 'No', you can set-up this field as ' not activate' or dummy. in this case, you/your client have the 'tax calculation system' outside.

[additional]

tax jurisdiction function is activated, when 'tax jurisdiction structure' is defined in SPRO. please check your IMG.

if the structure is active for 'tax procedure', actual tax rate should be on tax-jurisdiction-code.

if not, actual rate is determined on tax code.

of course, if 'tax jurisdiction structure' isn't defined, the field of customer master should be not displayed.

Regards,

Naoki

Edited by: Naoki Komine on Jul 15, 2009 3:06 PM

Edited by: Naoki Komine on Jul 15, 2009 3:08 PM

[Former Member]

Hi,

The jurisdiction code is used for the tax calculation purpose.

In FTXP the tax code will be created with the combination of country and jurisdiction code.

Regards,

Gopal.