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Tax exempt sold-to party

Former Member
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Hi SAP experts,

I have a sold-to party in Jersey that has been set up as Tax Exempt in it's Customer Master. However, its Bill-To Party is based in England so will pay tax. What has happened is that tax is being applied to the bill-to party and then we have to raise a credit note. Is there a way of the sold-to party overiding the tax setting for its bill-to party.

Thanks in advance.

Mike

Accepted Solutions (0)

Answers (2)

Answers (2)

Former Member
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Thanks for the reply Roberto.

Are you aware of any other business implications it may have in changing this setting to A. All our plants are currently set to B.

Thanks again.

Mike

rmazzali
Active Contributor
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goto:

SPRO, sales&distr->basic function->taxes->Maintain Sales Tax Identification Number Determination

At plant level set the flag to A.

this is the main logic (ffrom SAP help):

If you leave the field blank, the standard priority rule works as

follows:

1. If the payer has a VAT ID number and RG <> AG, then the tax number

and tax classification are copied from the payer (in this case, the

ship-to party is not relevant).

The tax number is taken according to the 'tax country of

destination'.

2. If 1. does not apply:

If the ship-to party has a VAT registration number and the sold-to

party does not, tax number and tax classification are copied from

the ship-to party.

3. If 2. does not apply:

Tax number and tax classification are copied from the sold-to party

If you enter A, tax number and tax classification are generally copied

from the sold-to party.

The tax number is copied according to the 'country of destination

relevant for taxes'.

If you enter B, tax number and tax classification are generally copied

from the payer.

The tax number is copied according to the 'country of destination

relevant for taxes'.

Roberto