We have client from UAE where there is no taxation but in MIRO system is asking tax jurisdication code
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.
Ashok Kumar Telugu replied
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..