Tax details

[Former Member]

Hello Gurus ;

I 'm just confused a bit abt VAT & MWST , What is the differance between VAT& MWST plz give me some inputs regarding these taxes.

Note - I did some search in forums and google also but i coludn't find the exact differance between those two.

Thank you inadvance

Regards

Ravi.M

Edited by: RAVIMSD on May 25, 2010 10:20 AM

[Former Member · Accepted solution]

Hi,

In SAP standard condition type for sales tax given is MWST which can be used across the countries. and the standard settings are done in SAP for the same.

VAT is the value added tax that is applicable in many countries ( It is the tax to be paid on the sale of any goods within the country) In India we have VAT and CST that is if goods are sold within the state VAT is applicable if outside the state and within the country that CST is applicable.

The SAP has used MWST as the output sales tax because in different country diff taxation is followed. SO when ever you want to create a local sales tax for any country you can use either MWST or copy and create a new condition type.

Hope this will help you .

Regards,

Krishna O

[Former Member]

Thank you Krisha for your response . Now i have clarity on that.

Regards

Ravi.M

[Lakshmipathi]

It is as simple as that as MWST is a condition type being used both for VAT and CST whereas, VAT is only a terminology we use in day today activities.

thanks

G. Lakshmipathi