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US Taxation : Sales order output tax

Hi Experts,I have a scenario where US company code which is a manucfacturing plant is selliing car to Sweden country, The tax value is Zero,Howver we need to maintain tax condition type UTX2 or UTXJ in order to post an IR at the purchasing company in Sweden. We are using tax code as O0.The incoming IR posted based on the O0 tax condition type maintained in OBCD.

Please advise which tax condition type to be used and also explain why we need to use if you are saying a specific conidition type.

There are few threads on UTXJ but i wanted to know on UTX2 as well.

Regards,

Kiran

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2 Answers

  • May 10 at 12:29 PM

    If your organization is US based. Aren't you using Taxware/Vertex/Sabrix for tax determination?

    Have you check the following standard pricing procedure available in SAP for the US available in the system.

    RVAAUS: Standard - USA /w/out Jur.Code
    RVAJUS: Standard - USA /With Jur.Code
    RVAXUD: Standard - USA /Tax per doc.
    RVAXUS: Standard - USA /with Jur. ext.

    Hope you understand, which sort taxes your organization need to declare in the US for exports.

    With diligence and observation, you will be able to make out, which applies to your organization.

    Accordingly, check and work on the tax condition type you need in your pricing procedure.

    As you have OBCD config available for SE, that means either you have tax exemption or all the transactions are non-taxable.

    So, 0 % Tax.

    In that case, focus on RVAAUS & RVAXUD.

    But, don't forget to refer Routines assigned to each of those UTX* condition types.

    Thanks,
    JP

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  • May 10 at 11:58 AM

    UTXJ is the tax condition type and UTX1 & UTX2 are its associated access sequence. So to answer your question, first you need to check which access sequence is closely related to your requirement and accordingly, set that access sequence to UTXJ.

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