Hospitality Reduced Tax Rate

[former_member638041]

Hi,

I have a scenario where the goverment introduced a reduction in tax rate for hospitality & Tourism services. The current reduction in the tax rate from 20% to 5%. This will last unit the 30th of September 2021 and then a further 6 months at a 12.5% rate and then finally returning to a 20% tax rate.

How has SAP BYD got around this issue? Currently it easy to suggest using the current reduced rate which is at 5% but I am unsure of what will happen when the goverment introduce the 12.5%. Will sap introduct a new tax code?

I need to understand how this will pan out so that I can inform the customer on how to deal with the scenario in the furture?

Kind Regards

Nikesh Pabari

[manasa_a]

Hi,

Can I know which is the tax type you are referring to?

Regards,

Manasa

[annapurna_vunnam2]

Hello Nikesh,

You can create a new tax type and create new tax rates accordingly in the Business configuration.

SAP will not create a new tax code as it is a rate change and user has to take care of new tax rates by updating them.

Best Regards,

Annapurna