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Tax classification in Customer Master Sales Area tab

Former Member
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How does SAP determine what country and conditions to include in the Customer Master Sales Area, Billing tab Taxes section? I see only Canada, China, Ireland, Israel, and US. We only tax on Canada and US. We do have business with the other countries, but there are other countries we sell to but are not listed in the Taxes section.

What makes a country appear or not appear in this section?

Thank you,

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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hi,

Go to SPRO

Sales and Distribution - basic setting - taxes - tax determination rule

the same way for master data also in the same place

check it out

regards,

Sudhir

Former Member
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Hi,

if we assign tax condition types to the country in OVK1 than these can be appear in customer master for the field tax classification.

So frist maintaine assignment of country and condition type as you required and specify the classification in customer master.

Likewise we maintaine tax relavancy classifications for customer in OVK3, material in OVK4

Thank you,

Shiva_Ram
Active Contributor
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The details are configured from t.code OVK1.For further information you can refer OSS Note 872449 - Tax determination in Sales and Distribution

Regards,

Former Member
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In OVK1, there are many countries listed. Only some of them appear in the customer master sales area master data. In addition, the countries that show up on the taxes are dependent on the sales area. Sales Area 1 had different countries than Sales Area 2. Why is this?

Again, in OVK1, the countries that appear for tax classification in the customer master do appear, but there are many other countries that do not appear. What is the configuration that makes the country and tax category show up for one country and not another? What is the configuration that makese it show up for one sales area and not another?

Did I miss something in the note? I don't consider that this question was addressed.

Thank you for your response,

Former Member
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Hi,

In OVK1, there are many countries listed. Only some of them appear in the customer master sales area master data. In addition, the countries that show up on the taxes are dependent on the sales area. Sales Area 1 had different countries than Sales Area 2. Why is this?

For this-Tax conditions are differ based on the countries.Ex:US has differant taxes and INDIA has different taxes.so based on this the selling companies has to pay the taxes(direct or indirect).so based on the location of selling company taxes have to be paid.

EX: Britania (INDIA)

Britania (USA) in this case one same company has to pay taxes different based on the location.so in this case customer may existed in one country can also purchase from another country like above example.in this senario we have to maintaine the customer details different.like sales area 1 india tax conditions. sales area 2 USA tax conditions.

I hope this can give clarification of your 2 questions.

Thank you,

Former Member
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Hi Ravi,

I understand what you are saying that different countries have different taxes but how does SAP choose which countries to show on the Sales Area view of the customer master?

For example, Argentina and Israel have MWST as a tax category, but only Israel show on Sales Area 1 taxes. Both countries can be found in OVK1 and with the same configuration.

Thanks for your feedback.

Bela

Former Member
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Thanks to all to who assisted. I have determined a resolution based on responses, some debugging and master data. The countries that appear in the sales area tax are based on two tables: TVKWZ and T001W.

A plant is assigned to a sales org in configuration and updates TVKWZ. It then becomes the basis of taxes for sales area. The taxes are based on whatever country the plant is located in.

Plant 0004 is assigned to Sales Org 1 and is located in CA so all customers in Sales Org 1 must enter a tax classification for that customer in regards to country CA.