Is it possible to switch from 5% GST to 13% HST automatically in SAP?

[Former Member]

Hi SAP Experts,

With regard to inputs given by my client, the materials are moving from U.S to Ontorio (Canada),which is ship-to-party. Earlier the tax was 5% GST in Canada. Due to change in tax laws in Canada, the tax has been changed from 5% GST to 13% HST. When our client had created an invoice, the system picked 5% GST. But it should be 13% HST as per our client. We had checked the configuration and found that tax code A8 was created with 5% and the same was created in SD with condition MWST.

The question is that "Is there any way by which we can automatically update the new tax information based on ship-to-party address (Ontorio, Canada) in the system?" If an automatic update is not possible, then please let me know how I can get 13% HST

in the Invoce? Can this problem be solved if our FI consultant creates a new tax code with 13% HST?

It is ok for our client if he gets 13% HST for the new documents that are posted from now onwards. Please advise how to proceed further on this issue.

Best Regards,

K.S.K

[Former Member]

Hello!

You should be able to change the taxes in transaction VK12 entering condition type MWST. You should see a access sequence for Export taxes. (Assuming that no other access sequence is used in your system.)

You need to enter Country and destination country. Change the rate and tax code for the according tax rate.

One more thing I guess you will need or your fi colleague will need to create a new tax code reflecting the 14%. (TC FTXP).

By the way - I am wondering why you tax exports but that is more a business question that I may not understand...

[former_member232834]

Dear,

I'm not sure if you have maintained the Condition Records MWST properly according to dates. If you have done that maybe it is possible to update the taxes by clicking on the update prices button in conditions using G. Copy pricing elements unchanged and redetermine taxes. If you need this for many documents maybe you can use the MASS program to do it to many.

Good Luck

[Lakshmipathi]

I am sure, you should be having two tax codes; one for 5% and another for 13% with different validity dates in condition record.

Now when you execute VF01 or VF04, maintain the Service Rendered Date whichever you want which should be within those maintained in the condition record for those two tax codes so that based on that date, system will fetch the required tax percent in billing.

G. Lakshmipathi