VAT calculation for Mileage Travel cost

[jayanchembada]

Hi,

In my client system two kind Travel Expense Types are available (Travel expense Type for Per Diems/Flat Rates (UK) ). One is Comapany Car expense type and Other is Private Car Expense Type( Employees using own car for company purpose). The flat rate reimbursement amount for company car is 0.12 pense ) petrol car). The flat rate reimbursement amount for Private car is 0.40 pense. Both expense types are 17.5% VATable.

My requirement is While calculating the VAT for private car expense type the VAT should not be applicable for the entire 0.40 pense per pound reimbursable amount. The VAT should calculate only for 0.12 pense per pound reimbursable amount. How can I bring this functionality in SAP configuration. As of now VAT is calculating for the entire 0.40 amount.

The VAT should be calculated only 0.12 reimbursable amount instead of 0.40.

Please suggest.

Regards

Jayan

[Former Member]

Hi Jayan,

Please go through the below thread.

Hope it helps you!

Thanks,

Vaibhav

[jayanchembada]

Hi Vibav,

Thanks for your reply. I understood the part of Tax free amount. But the here we talking about the incom tax amount that need to be payed. What is the difference between VAT able amount and Taxable. Is both VAT and incom tax same here.

Regards

Jayan