VAT

[Former Member]

Dear SAPpers,

Pls tell me what is VAT in SAP?

Thanks

[Former Member · Accepted solution]

Hi,

VAT= Value added Tax (Sales Tax)

This will be applicable when you sell or purchase the goods within the state or outside the state in case the state is register under VAT.

This VAT is common term used across the world for all sales and purchase

Regards

Goutham

[Former Member · Accepted solution]

could u please give me configurtions steps?

[Former Member]

Hi,

Value added tax (VAT), or goods and services tax (GST), is tax on exchanges. It is levied on the added value that results from each exchange. It differs from a sales tax because a sales tax is levied on the total value of the exchange. For this reason, a VAT is neutral with respect to the number of passages that there are between the producer and the final consumer. A VAT is an indirect tax, in that the tax is collected from someone other than the person who actually bears the cost of the tax (namely the seller rather than the consumer). To avoid double taxation on final consumption, exports (which by definition, are consumed abroad) are usually not subject to VAT and VAT charged under such circumstances is usually refundable.

regards

sadhu kishore

[Former Member]

hi,

VAT: This is the duty which is applied on the goods that are sold to customers. This duty belongs to

the state government.

VAT is not applicable in UP, TN, JK etc.

[Lakshmipathi]

Dear Yves

Value Added Tax - VAT has replaced the local sales tax in India. Under the current single-point system of tax levy, the manufacturer or importer of goods into a State is liable to sales tax. There is no sales tax on the further distribution channel.

VAT, in simple terms, is a multi-point levy on each of the entities in the supply chain with the facility of set-off of input tax - that is, the tax paid at the stage of purchase of goods by a trader and on purchase of raw materials by a manufacturer. Only the value addition in the hands of each of the entities is subject to tax. For instance, if a dealer purchases goods for Rs 100 from another dealer and a tax of Rs 10 has been charged in the bill, and he sells the goods for Rs 120 on which the dealer will charge a tax of Rs 12 at 10 per cent, the tax payable by the dealer will be only Rs 2, being the difference between the tax collected of Rs 12 and tax already paid on purchases of Rs 10. Thus, the dealer has paid tax at 10 per cent on Rs 20 being the value addition in his hands.

Purchase price - Rs 100

Tax paid on purchase - Rs 10 (input tax)

Sale price - Rs 120

Tax payable on sale price - Rs 12 (output tax)

Input tax credit - Rs 10

VAT payable - Rs 2

To address this VAT, we consider condition type JIN2 in SAP.

thanks

G. Lakshmipathi