Export Sales Tax Deduction

[Former Member]

Hi

America Inc is one company code (4000) which is registered at in Quebec in Canada hence it is liable to collect QST retrospectively.

That mean now we want to do export sales from US to Canada along with want to collect tax.

For country Canada, Tax procedure already created with its Tax Jurisdiction. In case of county US there is no Tax Jurisdiction.

We did not find any standard process for this export tax deduction scenario.

Please suggest us.

Regards

Arun

[former_member184555 · Accepted solution]

Hi

Just for your information...there are two tax procedures available for Canada. TAXCAJ is Jurisdictional based and TAXCA is Non Jurisdictional. You can refer the note 10560, which is related to taxes in cross border (US and Canada) scenarios.

Thanks,

Ravi Sankar

[Former Member · Accepted solution]

Hi Ravi,

For Canada Tax Jurisdiction already activated which required by business. And for US there not Tax Jurisdiction not activated and business does not want to do also.

Regards

Arun

[Former Member · Accepted solution]

Hi ,

it is resolved by us by using following steps.

1.       1. Assign Canada Region (Quebec, Ontario, British Columbia, Alberta) in US country.

2.       2. Assign condition types (JRC1, JRC2, JRC3, JRC4) in tax procedure TAXGEN.

3.       3. Assign a new table (03- Country/Tax Code) in the access sequence (TAXJ).

4.       4. Assign condition type CTXJ to region US.

5.      5. Create a new table (502 –Sales org/Country/Region/Customer Tax Classific-2/ Material Tax Classification-2).

6.       Master Data

a.       Create new output tax code for country US and Reporting country CA and Region (Quebec, Ontario, British Columbia, Alberta)

b.      Create condition records for CTXJ and JRC1/JRC2/JRC3.

c.       Customer and Material Master in records in Canada extended for US (Maintain Tax classification-2)

[Lakshmipathi]

Check whether the following note helps you:-

Note 441456 - Tax Shipments between the US and Canada using jurisdictions

G. Lakshmipathi

[Former Member]

Hi Laxmi,

In our case for US country Tax Jurisdiction is not activate neither business is ready for this.

Please guide me.

Regards

Arun

[Lakshmipathi]

In that case, I feel, you have to take it up with SAP only.  In case, I get any clue, will update here.

G. Lakshmipathi