Different VAT tax code in different PO conditions at Header level

[VishaalUlphe]

Hello,

We have a scenario that there are different VAT tax code for various expense conditions at Header level of Purchase Order. For example for Services there is different VAT tax code and for other some other service , there is other VAT Tax code and Material has different VAT tax code.

Please suggest how can we assign different VAT Tax code for each such type of conditions in Header in Purchase order.

Warm Regards

Ram

[ahmed_abdelatif]

at invoice (MIRO) you can invoice just 1 condition with tax code and the other condition with another tax code

[sanilbhandari]

Hi kamalsachdevasoltius

I would want to know the business use case as well as a legal requirement. May be you explain with some example since it is not clear to me how would that happen that you have multiple tax rates at a document header.

If you have multiple services and material in a single PO and each is valid for different tax rates, there is a provision for specifying tax code already at line item level, which is possible already. This also helps you create invoices seperately if there is different way to treat services and material (Eg, distance selling in EU or SEZ treatment in some of the LATAM Countries as well as African countries).

It will help if you attach some screen shots as well for your issue.

Thanks & Regards

Sanil Bhandari

[VishaalUlphe]

Dear Sanil,

I have two expense condition one for Clearing agent charges and second for Professional Fees. These are maintained at PO header level and have different VAT Tax codes (rates).

Besides at the line item level, I know that we can maintain different tax codes for material.

The issue is how will I maintain the different Tax codes in the conditions maintained at the header level of PO.

Thanks

kamal

[sanilbhandari]

Hi kamalsachdevasoltius

The tax codes can be specified at item level and not for header condition. So if you really need to specify the tax codes in the PO, you need to create it as an item condition. Since the nature of expenses is also different, it makes sense to have it as item condition.

If you business scenario is such that the vendors for clearing and professional charges area, than you can anyways choose the right tax code by booking the invoices separately and not specifying the tax code in PO. The tax reporting for VAT is based on the invoice document and not really the PO.

If you want this functionality as a standard, please do create a customer influence request highlighting the requirement and business justification at the link below:

https://www.sap.com/india/about/customer-involvement/influence-adopt.html

Thanks & Regards

Sanil Bhandari