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KSA:Vat Implementation

Sep 20, 2017 at 07:05 AM


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We are in the process of implementing VAT for Saudi Arabia.In the PO, Vat tax is flowing from pricing procedure with condition record 5 % with Tax code V2. It is fine.

But when we do MIRO,the VAT calculation is not occurring based on pricing procedure(condition record 5 % with tax code V2 in MEK1) .It is not calculating.

Any tips for this issue?

But,When I maintain 5 % in FTXP,then tax calculation is occurring.Why? Nature of system is like that????


With Regards,


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6 Answers

Best Answer
Dibyendu Patra Sep 20, 2017 at 11:33 AM

In MIRO, tax amount is calculated from FV11 condition record not MEK1.

By maintaining amount in FTXP, system will make a FV11 condition record automatically.

Maintain your specific condition record in FV11, then check MIRO.

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Mohamed Ismail Sep 25, 2017 at 07:52 AM

Hi Patra,

So we need to create two conditions record,???

One for Pricing procedure(MEK1) and another one(MIRO) for tax procedure (FV11)..Do you have any documentation for this?

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Jürgen L
Oct 04, 2017 at 09:32 AM

the steps of the VAT implementation for KSA are outlined in the attachment to OSS note 2477105 - VAT Baseline Package for Saudi Arabia

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Mohamed Ismail Oct 04, 2017 at 10:00 AM

Thank you Jurgen.

As per OSS note 2477105 and Excel SA_VAT_guide ,VAT is flowing in my PO(here condition record created using MEK1). And also I did modification in my pricing procedure.This is fine.

But when I tried to calculate VAT in MIRO ,it is not working.

In this OSS note,it did not speak about VAT calculation in MIRO.This is my doubt.

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Do you have experience with VAT and MIRO from other countries and companies in your system, do you have the option to compare?

"is not working" is not a qualified professional explanation of a situation. I think you can do that better supported by posting of some screenshots if there are difficulties with the English language


Thanks Jurgen.

I dont have experience with other countries VAT.


Now I am with MIRO.

When I do MIRO,the system is not bringing VAT value and QTY . we need to enter by our self. How to bring automatically VAT value and QTY ? Any tips please.

please refer attachment file.


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Usually you just tick the box for "calculate tax" after you entered the amount and SAP will calculate the tax amount automatically, or you leave the field "calculate tax" empty and you enter the tax amount yourself.

Don't know what you want with an extra second line as reference.

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Thank you...

My question is do I need to enter 'Amount' and 'Quantity' manually in the above screen? If I have 10 items in my PO,need to enter 10 times amount & Quantity(GCC Input VAT)?

My condition type ZVAT

Condition class:D

Calculation Type A

Condition category D


Have you ever seen an invoice on paper? How many times is the VAT on that invoice?

just enter "invoice" in google and go to the pictures and pick one randomly e.g. this one

Bildergebnis für invoice

the user who received the invoice enters the amount and clicks "calculate tax" , if it is different then he may overwrite it with the tax written on the document

Then he continues with entering the PO number and selecting the PO items for which the invoice is.

SAP will tell if there is a balance.

But this would be most obvious way of posting an invoice.

Mohamed Ismail Oct 04, 2017 at 05:25 PM

I am using pricing procedures for vat flowing in is fine.but I tried to do miro ,vat for custom duty.

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Not sure what you expect, MIRO is a transaction to enter data. you get an invoice by mail and user opens the envelope goes on the computer and enters what is written on the paper. Calculating the tax is an entry aid. Don't understand why you think this should all flow from own created documents and conditions. You actually to invoice verification, this means you enter what the vendor wrote on his invoice and compare this with the data you have in your documents.

Was this ever different before you had to deal with VAT?



I have created Import PO with two items.So I have to pay custom duty at port,for that I need to calculate VAT in Duty MIRO.Once I paid,I will do GR.Then finally I will do MIRO for material. This is process of Import.


As per OSS note,I have created condition record in MEK1 with access sequence.Now in my Import PO, VAT is flowing 5 %.This is fine. No Issue.

Step 2:Now I have to calculate VAT for my custom duty in MIRO with planned delivery cost .Here I am not using TAX procedure for calculating VAT for my custom duty.Since I have two items in PO,I have to enter two two times custom duty. I want to enter one only time Custom Duty for all PO items.please refer all my attachments.


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Customs duty is usually not a second item in a PO, it is a condition of the first item. You do not purchase customs duty at your product vendor.

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Former Member Nov 28, 2017 at 06:29 AM

Mohamed Ismail

Import GCC VAT process -

1. PO with Tax code V0 . No tax for PO vendor A1

In the same PO - Condition type Customs duty maintain amount - maintain tax code VY (or your tax code with 5% ) and Customs vendor A2 .

2. Need to clear customs duty and with 5% VAT - Do Miro and select vendor A2 . and select tax code VY . It will work

3. Do the GR

4. Do the final Inv to PO vendor A1 with tax code V0

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