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Tax determination based on the ship-to

Former Member
0 Kudos

Hi

We have an issue where when we try to detemine the tax classification at ship-to level, where the ship-to is not in the same country as the sold-to. e.g. sold-to is GB, ship-to is ES. On the ship-to we have defined a different tax classification, but it seems to ignore this. I have investigated the regions table, and although this region and country do not exist, when I tested with a region and country that exists it still did not work. I have also checked the `VAT number determination', we currenlty have it as blank. Our requirement is that we have delivery addresses abroad, but the customer requires full UK VAT applied, we have crreated a specific tax classification to handle this with the relevant tax code for VAT purposes, but I cannot understand why the classification is not being used on the ship-to. These addresses the goods are being delivered to are not the customer but a third party in some cases. In the system will it only select the ship-to for tax purposes if there is a valid VAT code against the ship-to.

thanks for your help

Accepted Solutions (1)

Accepted Solutions (1)

Shiva_Ram
Active Contributor
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Check OSS notes 434562 - Determination and country of VAT registration number and 872449 - Tax determination in Sales and

Distribution for understanding on tax determination.

Regards,

Answers (1)

Answers (1)

Lakshmipathi
Active Contributor
0 Kudos
In the system will it only select the ship-to for tax purposes

Yes tax will be determined based on the combination of delivering plant region and ship to party region which is a standard.

thanks

G. Lakshmipathi

Former Member
0 Kudos

Dear Friend

Lets think functionally.

Tax is ALWAYS calculated on the basis of SHIP TO PARTY customer.

This is the top most priority.

Rgds

Sumanth.Gururaj

Consultant/Systems Analyst - SAP SD/MM