Vat on Import Purchase Order

[Former Member]

Dear All,

We have a new scenario as below.  I am new for Material Management.

Request you all to pl. share your experience.

We have differenct purchase order type for import purchase order.

We have prepared Import Purchase order. Vendor is charging VAT on basic price of the material.

In our import PO, currently VAT is not reflected.

How can we incorporate VAT?

Thanks and Regards,

Nirav

[Former Member]

First understand that for Imports there are different set of duties other than VAT/CST.

Still if for learning purpose you want to have a VAT,e then select one VAT condition, assign it in TAXIIN/TAXINJ at proper place, create tax code with this condition, maintain condition record for this condition, create a PO using above tax code.

It will appear in PO. Dont forget to assign GL to the account key assigned to this condition in TAXIIN/TAXINJ with the help of your FI team mate.

[former_member192897]

Is it a deductible VAT condition or a non deductible?

You may try out the following options :

1) Create a new condition type for VAT and have inserted in your Imports pricing procedure. (Only in case VAT is Non deductible)  You may also try for Deductible case and check whether it serves your requirement.

2) Create a separate tax code for VAT alone and make use of it in Import procurement along with Import conditions and check whether your requirement is fulfilled..

Note : In any case, do not classify the Z* VAT condition types.

[former_member183155]

Hi Nirav ;

you can solve this problem with a condition type related with import expenses.

I can help you about configuration.

Note : I wish , you created a different vendor account group for importing vendors.

Regards.

M.Ozgur Unal

[Former Member]

VAT - Local commodity Tax in India, it is levied for local India tax process only,

Ideally, Import should go with nil tax. but u can capture CVD, cess and custom clearance charges.

hope you want to knock of those charges with the export. For that you can check with your Finance, they might have licensing procedure to knock off your Import levies.

[Prasoon]

Hi,

   I Assume that its Indian Scenario.

   In India, for Import purchase, there wont be any VAAT/CST, but only import duties (like CVD, SED etc)  will be applicable. The import duties you can maintain in MM pricing procedure. THe tax code used will be a nill tax code.

   For local purchase, you can bring the tax details using the tax code in PO invoice tab. Maintain the condition records for VAT condition in FV11.

Hope its helpful.

Regards,

AKPT