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KSA:Vat Implementation

Hi,

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????

1.jpg.

With Regards,

Jaheer

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6 Answers

  • Best Answer
    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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  • 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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  • 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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  • 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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    • 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.

  • Oct 04, 2017 at 05:25 PM

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

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  • avatar image
    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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