Tax Exemptions at Contract Account

[Former Member]

Hi Experts,

I wanted to know if any of you have implemented/used the standard SAP functionality of providing tax Exemptions at contract account. At my current project, client wants to give tax exemption for those contract accounts that have a valid tax exemption certificate.

Any help on this topic would be very much helpful.

Thanks

Rahul.

[Former Member]

Set the account determination id to 01 Non-Taxable on the contract account.

[Former Member]

Well thanks for your reply, but if i update the ADID to non-exempt that doesn't hold good for a particular period while the solution i was looking for was to get a particular exemption to be applicable only between the active dates of the tax certificate.

[Former Member]

Tax exemptions at the contract account as per standard sap would only work when we use an external taxware. So if you enter a tax code in the tax exemption field at the contract account, you will have code your own exits to apply the logic of tax exemption.

[Former Member]

Thanks Yuvi for reply... Till whatever i am able to get my hands on SAP standard documentation for tax exemption at contract account, i couldn't find that it is limited to for external tax based system only. Yet not really sure, if that is the case. Well at current project we have internal tax based system and i am trying out option to have tax exemption via tax exemption certifacte.

[william_eastman]

Rahul:

As per documentation: Tax exemptions for the contract account are currently only supported for company codes for Argentina and Italy in Contract Accounts Receivable and Payable.

In any other region, you can store exemptions on the contract account, and you can process correspondence for expiring certificates within the standard solution. If you want to use the percentages to influence the tax calculation, then you will need to enhance the tax calculation process.

regards,

bill.

[Former Member]

Thanks Bill for the reply.

Can you suggest some standard practices that could be used for giving tax exemption corresponding to tax exemption certificates based on validity. Currently this is done by configuring ADID at each possible level of tax exemption and based on the details of tax exemption certificate, the ADID is overwritten at contract level and billing is carried out. They wanted to somehow automate this process and hence i was looking for this solution.

[Former Member]

You can control tax exemptions certificate valid for a given period at customer master level.