How to maintain export tax for customers without VAT registration number

[Former Member]

Hi everyone 

I'm struggeling with the use of TTX1 condition in my sales order for a foreign customer. How can I make sure that the domestic tax percentage will be applied in a sales order for a foreign customer that doesn't have a VAT registration number without having to maintain each combination in the set tax rates sales app? 

Example: company in Belgium wants to sell to a customer without VAT registration number in Norway. 

Situation 1:
Customer master data:
- no VAT registration number added
- in the sales area, tax classification is set up with country BE, tax category TTX1, Tax Classification 2 (liable for taxes B2C).
Set tax rates sales app: 
- tax condition TTX1: country BE: for export tax to country Norway, an extra item is added where tax classification customer is 2; tax classification material is 1; amount is 21 % and tax code is 13. 

--> Result of situation 1: in the sales order, TTX1 is correctly applied with 21% VAT. 

Situation 2:
Customer master data: 
- no VAT registration number added
- in the sales area, tax classification is set up with country BE, tax category TTX1, Tax Classification empty.
Set tax rates sales app: 
- tax condition TTX1: country BE: for export tax to country Norway, no extra item is added.

--> Result of situation 2: In the sales order I get the warning message "Pricing error: Mandatory condition TTX1 is missing". 

So I was wondering if there's a solution to automatically use the domestic tax in case the customer is a foreign customer without VAT registration number. 

Thank you in advance! 

Best regards
Annelies

[Daniel_Kesenhei]

Dear Annelies,

you need to maintain every combination in the App " set tax rates sales". Otherwise, the system would not know, which tax code applies.

Please consult your tax advisor, which combinations with which values are correct for your business.

Best regards,

Daniel

[former_member132363]

Here are some SAP resources you may review based on your topic "maintain export | of | vat registration number | domestic tax percentage | tax | sales order | tax rates sales | registration | app"

External Sales & Use Tax Calculation Overview for S/4HANA Cloud

Nov 20, 2019 ... S/4HANA Cloud differentiates between internal and external tax calculation for ... Login/Register ... and sales and distribution, when tax rates and tax amounts are retrieved. ... With that set up, you can use the SAP Application Integration ... jurisdiction maintained on the customer as the point-of-order origin.

https://blogs.sap.com/?p=102

Finance ERP

Keep your core finance operations running at peak performance by following ... details about VAT and schedule tax applicable on your sales and purchases ... Increase in VAT rate from 5% to 15% for SAP ERP6 and SAP S/4HANA OP customers. ... Extension of three months in the deadline to file value-added tax ( VAT) and?...

https://support.sap.com/en/product/globalization/fi-erp.html

US Tax Codes Not Loaded - How to fix it

Sep 25, 2019 ... Login/Register ... To load US tax rates, execute the Import Tax Codes After Transport SSCUI. ... Transport Number: ... After you execute the app, you can use the Define Tax Codes for Sales and Purchases ... Do wen need to export the bc from Q while in local version US for this?...

https://blogs.sap.com/?p=1265290

[former_member132363]

Plants abroad is one of the pieces of functionality not supported in S4HC. A workaround is to create a company code in the country where they had foreign tax registration (and managing that company in the currency of the main operation using an additional currency - which requires expert configuration).

I hope this answered your question! If it did, please mark it as the 'Best Answer' so I can continue learning and answering questions in the community.