<b>What is the function of Tax code in tax determination, and where it is assigned ?</b>
Function Of Tax Code
Tax on sales/purchases code
The tax code represents a tax category which must be taken into consideration when making a tax return to the tax authorities.
Tax codes are unique per country. The tax rate calculation rules and further features are stored in a table for each tax code.
For tax-exempt or non-taxable transactions, you should use tax codes with a 0 percentage rate if the corresponding transactions are to be displayed in the tax returns.
Note
You must define new tax codes if tax rates are changed by the state. The old codes with the old tax rates must remain in the system until no more open items which use this tax code exist.
What F1 Help doesn't say is Tax codes are used for Account Determination.
It is <b>assigned</b> when you define condition record in SD VK11- e.g. UTXJ.
and is defined in FTXP
What is the use of VAT registration number in Control Tab page in Cusomer master ? Does it effect the tax determination in a transaction ?
In SAP, VAT Registration is created in customer master record, under General tab.
Also multipe VAT ID's can be used, when a customer is registered in more that one country. This has effect to the tax determination within the EU because different tax rates and tax codes will be used in these cases.
For more details on VAT check the link VAT Details
http://www.ukincorp.co.uk/s-1E-vat-value-added-tax-registration.html
If you are talking about India , then it doesn't effect , as VAT is maintianed by tax codes
Regards
Jitesh
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