KSA VAT on Import Goods

[Former Member]

Hi Gurus,

VAT is going to be implemented in KSA. I have configured all the domestic scenarios relevant for VAT and getting stuck in Import Purchase.

In Import, the VAT has to be paid to Custom Department and not to the Foreign Vendor. Foreign Vendor will ship the material, Custom Department will do the assessment and will apply the VAT. Now the problem is how I configure the scenario. As I have read through different threads, everywhere it is written that it will be solved through Condition Type. I configured the condition type but as this VAT is deductible so the amount should not be included in Material Price which I am not able to remove. When I configure the VAT condition type, the Inventory amount is getting increase with VAT value. How to resolve that?

Secondly, if it will be configured through Condition Type and there is no Tax Code then how it will appear in Tax Reports like F.12.

Please share the valuable inputs.

Regards

[former_member722344]

Hellow Imran,

I want to see vat return summary report with vat class and input out put and net payable amount in sap.

So, is it possible thru any standard functionality which is already given by sap or any kind of enhancement or customisation will required.

[Former Member]

Hi Imran,

Please review the below SAP Notes

2581369 - VAT KSA and UAE : Imports Process

2583751 - VAT KSA and UAE: Tax calculation in MIRO during Imports

Regards

Praveen K. Karmukshi

[Former Member]

Hi Imran,

For Import VAT, you need to create PO with Zero Tax code as main vendor has nothing to with VAT or no VAT. For Custom Vendor maintain the Vendor in line item.

While paying to authority using MIRO, select the Tax Code applicable and by selecting Delivery Cost.

Then pay your main vendor again selecting Zero Tax code.

Regards,

Lakhya

[Former Member]

any reply ....

[JL23]

Please show what you have done.

In general you find all what is needed in OSS note 2477105 - VAT Baseline Package for Saudi Arabia

[Former Member]

Dear Jurgen

Yes I have followed the same document and implement the BC set. This document helps in configuring Domestic scenarios which I mentioned that I have configured. But I am getting stuck in Import Scenario where VAT will be deducted by Custom authorities. There will be rate difference also when they applied the VAT.

Please share your thoughts.

Regards

[former_member331680]

Dear Imran,

I'm facing the same issue. Have you found the solution. If so, would you mind to explain it?

Kind regards

Saumya