We have client from UAE where there is no taxation but in MIRO system is asking tax jurisdication code

[former_member256557]

Dear SCN's,

We are working for UAE client where there is no taxation but while doing MIRO system is showing error 'Enter tax jurisdication code'. I have checked the config in Financial accounting new-Taxation for sales and purchase-Basic Settings-Taxation for company code, here for company code AE tax procedure taxinj is assigned. If i remove this will it solve the issue.

[former_member192897]

Remove TAXINJ and assign TAXSG for your country code AE (as there would be No taxes for UAE) and check in Dev / Sandbox environment once again. Also ensure that the Plant code does not have any Jurisdiction assigned. This can be checked in T001W table or under Enterprise Structure-Definition-Define Plant.

[former_member256557]

Thanks Ashok, do i need to create tax code in ftxp for the tax procedure.

[former_member192897]

I do not see UAE specific tax procedure. You can assign TAXSG to your Country code. And Yes, you may create Two tax codes. One Input and One Output tax code.Maintain condition record in FV11 for any condition type with Zero percentage.

Let me know if you have any challenges.

[former_member256557]

Thanks for quick response, do we need to assign tax procedure even though our client has no tax. If i remove the tax procedure from the company code system asking for tax procedure.

[former_member256557]

Dear Ashok,

In my settings TAXINJ is assigned to my company code, if I remove the tax procedure system asks for tax procedure to the company code. But we dont have any taxes as client is UAE, so what would be the best possibility to solve the issue.

[former_member192897]

Assignment of Tax procedure to Country code is Mandatory. This can be done in OBBG. You must assign the tax procedure even though your country does not have taxes.

1) Copy the Tax Procedure (Any) and Rename it as per your requirement. You can use existing one also say TAXSG (There is no harm if you use existing tax procedure as you are not going to use the Taxes) But, keeping future in mind, it is better you copy any tax procedure and make the changes as per your requirement. I.e. Remove the condition types and keep one or two condition type (could be any) for the purpose of maintaining condition records with zero percentage.

2) Assign Tax procedure to Country Code AE (In your case)

3) Create One Input and One Out put tax codes

4) Assign Tax codes to Company codes

5) Maintain condition record in FV11 for the condition type that is assigned to your tax procedure with Zero percentage and proceed.

Should you have any challenges, please revert back to us..

[former_member256557]

Thanks Ashok, lastly do I need to assign G/L to the input and output tax as system is asking for it.

[former_member192897]

Yep.. Assign One dummy GL account. Else Maintain Condition record for a Non Deductible condition type which does not require any GL account.