sales tax in China ?

[Former Member]

Hi,

in China exists many different tax code for output VAT, 0% output VAT, 5% output VAT, 13% output VAT and 17% output VAT.

Which tax code have I use for create an sales order and create an invoice ?

Where I can find any examples ?

The standard calculation procedure RVAACN includes 4 conditions types: MWST, IDM2, IDMW and IDM3 and I don't know for what exactly.

thanks in advance

best regards

Holger

[Former Member · Accepted solution]

Hi Holger,

You can use the MWST condition type for the tax from sap standard. You firstly need to configure the pricing control assignments (table,access sequence,condition type and pricing procedure for your business pricing scenario). Additionally, you need to create condition records for your taz condition type.

For example:

You can create your condition records as below from vk11 for MWST condition type :

in acces sequence "countrytaxCl1CusttaxCl.Mat." ,

you should create your condition records like:

Country

US

taxCl1Cust + taxCl.Mat + amount + unit + tax code

0 + 0 + 0 + % + A0

0 + 1 + 0 + % + A0

0 + 2 + 0 + % + A0

1 + 0 + 0 + % + A0

1 + 1 + 18 + % + A3

2 + 0 + 0 + % + A0

2 + 2 + 8 + % + A2

Additionally after all, you should maintain these tax classification to your customer master and material master records billing tab to activate which combination is needed.

I hope these will be very useful for you.

Thanks,

[Former Member · Accepted solution]

Hi @all,

thanks for your answers.

Last questions, is it possible to have more than one output VAT tax in one sales order or not for China?

Example

customer is located in China, one sales order with one material, output VAT tax with 17% and output VAT tax with 5 % ???

best regards

Holgerr

[Former Member · Accepted solution]

In such case , you need to add one more Condition Type for Tax & make the Condition Record for 5 %.

In MWST Condition Type , make a Condition Record of 17%.

Best Regards,

Ankur

[Former Member]

ok, more than one output VAT tax for China possible, different condition types and includes this in pricing procedure

thanks

Holger

[Former Member]

Go to IMG and check u201CDefine tax relevancy of master recordsu201D in the Sales & Distribution menu path.

In general, you assign tax class to either material master, customer master, or sales document header.

Then assign tax class to tax category/condition type such as CTX1, etc.

Maintain condition type, e.g. CTX1, with tax rate/tax code, etc.

[Former Member]

Hi Stacy,

thank you for your answer, but my problem is to understand, which tax code is correct.

For example:

the customer is not located in China, may be in Europe, than I have to use 0% output VAT

next example:

customer is located in China, what is the correct amount of output VAT ? 5% or 13% or 17% ?

thanks in advance

Holger

[Former Member]

Output VAT Tax relevancy depends on the Tax Classification maintained in the Customer Master.

If one Customer is for Europe with Tax Classification as '1' & relevant for '0%' Output Tax then maintain the Condition Record with MWST as Tax Classification of Customer as '1' & Tax Classification of Material at 0%.

Another Customer is for China with Tax Classification as '2' & relevant for '5%' , 13% & 17% Output Tax then maintain the Condition Record with MWST as Tax Classification of Customer as '2' & Tax Classification of Material with any of the above Tax rates.

As maintained in the Condition Record , system picks the relevant Output Tax in the Sales Order.

Best Regards,

Ankur