How do you change the Tax Decision Tree?

[Former Member]

All services provided by our company are received within the UAE and therefore subject to VAT. However some of our customers have international addresses. The automatic tax code being included for these customers is 501 - Non-GCC Export of services, Zero Rate. Our Sales orders and invoices are created via web services so I need for all customers regardless of their address to be automatically allocated to the tax code allocated to the specific product code.

How do I change the tax decision tree to reflect this? Is it via the External Tax Determination for Goods and Services in the Business Configuration WoC and would I need to create a new project to do this?

Or is their anyway to change this in the customer account. The account determination for all customers is already set to Domestic, Third Party.

[alexandre_colombo]

Hi Danielle,

Yes, external tax determination seems to be a good ideia in this case.

With this feature you may create a set of parameters for the system to check and derive a tax code accordingly based on that. If the parameters you set for external tax determination match with the parameters in the source document (e.g. Ship-from, Ship-to, etc) the tax defined in the external tax determination is selected. If there is no match, the system then proceed with standard tax decision tree.

You may find more details on KBA (Knowledge Base Article)

2332151 - Configure Tax Event / Tax Code Determination for Special Use Cases

If you have no open projects and if this feature is not scoped in the system yet, then yes you would need a change project to enable external tax determination. Otherwise, if this is already scoped, the activity "External Tax Determination for Goods and Services" allows immediate change, hence no change project is required. This can be done as follows:

1. Go to Business Configuration work center

2. Go to Overview view.

3. Search for External Tax Determination for Goods and Services

You shall find the activity with change type as "Immediate Change Possible"

Best Regards,

Alexandre.