Condition Type MWST for Malaysia Country

[Former Member]

Dear all,

I have questions about setting the condition type MWST in Sales Order.

Departure Country: Singapore

Destination Country: Malaysia

There are some conditions whereby the customer needs to have 7% tax and some do not need.

I set the key combination for 'Departure County / Destination Country' = 7% when Sales Order have 7% tax and remove the tax when Sales Order have no tax.

May i know what is the useage for the other 2 combination 'Domestic tax' and 'Export tax'.

How do i solve this issue?

Thanks

[Former Member]

hi,

difference b/w export tax and domestic tax is that domestic tax varies from state to state in case you are buying or selling the goods from from one state to another within the country which is charged by the government of that particular state from which you are buying the goods .export tax means you are selling the goods from any place of your country to another country ,the taxes which are incurred by the the government are export tax.

[Former Member]

Hi Avanish,

Thanks for your reply. I understand that. But may i know how system determine which tax to use? Is it based on the customer country?

Thanks

[Former Member]

Yes Customer country is Destination country and Plant country in Sales order is departure country.

[Former Member]

hi,

upto my knowledge ,in pricing procedure you will get taxinn and tax inj which are user and calculation based type respectively for country india .it might help you because in this conditions contained by these procedures belong to country india.

[jpfriends079]

To make Tax condition type MWST relevant for Malaysia Country use TCode OVK1.

Tax classification for customer & material are configured by using TCode OVK3 & OVK4, respectively.

After this tax condition type realted tax classification will reflect in respective master.

For this you can refer, standard access sequence MWST for condition type MWST.

Where you have following access(condition table):

One for condition table 2-Domestic Taxes with fields

- ALAND - Delivering Plant Country

- TAXK1 - TaxClass1-Cust (from customer master)

- TAXM1 - Tax class. material.(from material master)

And other condition table 11-Export Taxes in access of access sequence

- ALAND - Delivering Plant Country

- LAND1 - Destination Country of Ship-to Party

- TAXK1- TaxClass1-Cust.(from customer master)

- TAXM1 - Tax class. material (from material master)

Then there are some standard routine.

Pricing Requirement routine 7 - Domestic Business is valid when the departure country is same as to the destination country

Pricing Requirement routine 8 - It is valid for export scenario, where the departure country & the destination country are different.

Therefore, taxes might be calculated differently based on business scenario whether its domestic or export.

You can have 2 different sales doc type with 2 different pricing procedure.

And you can assign these pricing routine 7 & 8 based on your business process domestic & export, respectively in against tax condition type MWST.

For further reference you can refer SAP Consulting Note 872449 - Tax determination in Sales and Distribution.

If have any further specific query then do revert back.

Regards

JP