VAT

[Former Member]

Hi Guys,

I need to create a VAT tax code. My query is that whether Sales Output Tax and Purchase Input Tax are both considered as VAT?

As i need to create the VAT tax codes for both Sales Output Tax and Purchase Input Tax .

Also I have the information regarding the Input Tax GL and Output Tax GL.

I think i need to create this Tax Codes using FTXP. Just wondering if anyone could explain me how this VAT tax codes work during an Invoice and How does the Input Tax GL and Output TAX GL get hit ?

Any other information is required for creation of these VAT Codes?

Thanks

Srik.

[sanilbhandari]

Hi

You need to create the VAT Tax Codes seperately for Sales & purchase seperately. In your tax procedure you must have assigned accounting keys for VAT. In transaction code OB40 assign the GL Account for every tax code for the accounting keys used for VAT,

Regards

Sanil Bhandari

[Former Member]

Dear,

Yes both Input and Output tax are considered VAT.

Only factor is when tax code is created in FTXP Tax type V for input tax and A for output tax is defined.

Tax is calculated base on the condition type in pricing procedure while billing is being done. This Tax condition type contains the tax code determined base on material, customer etc. Same procedure applicable for MM (Input Tax)

IN FI tax code is inserted in the document and it calculates the tax.

Regards,

Chintan Joshi.