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Former Member

US Sales Tax - Some materials are taxable in some states and not others....

We have lots of materials which are classified and grouped.

All materials grouped are taxable somewhere so the material tax classificiation is set to 1.

In some states, some material groupings are not taxable whilst others are so there is a State Tax Jurisdication Tax Code set up.

The customer is taxable - and the material is taxable therefor the UTXJ condition is found and there is a Jurisdtication code of this particular state but this particular product should not be taxable in this situation .... how can I do that?

I don't think picking up the Material Grouping & the State in the VOFM Requirement check will work as the situation is too fluid. This must happen all the time - how do you guys in the States deal with this situation?

Regards.

Patrick.

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2 Answers

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    Former Member
    Oct 06, 2011 at 06:46 PM

    you can maintain condition record for tax condition type using Plant Region and customer region, you can add Tax clasification of suctomer and material if you need but best way to maintain on plant and customer region

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  • Oct 07, 2011 at 04:58 AM

    Since this would not be a regular case, you can very well change the tax classification in sale order either at header level for customer or at item level and for that combination, you maintain nil tax in condition record in VK11 / UTXJ

    G. Lakshmipathi

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    • Former Member

      Guys I appreciate the feedback but I don't really understand either answer;

      i) US Local taxes are derived via condition UTXJ which does not have either Plant or Customer Region in the access sequence? The standard US domestic access is Country - State - Customer Tax Class & Material Tax Class which as I have indicated, suggests (as the customer is taxable, and the material is taxable (somewhere)) then local taxes are applicable and therefore it goes on to find the appropriate tax rate for the state jurisdiction code. I canu2019t see how to implement a short circuit to this.

      ii) Yes u2013 I guess I could ask the user to override the tax class every time they sell this kind of product for this state but that just doesnu2019t seem right u2013 and the UTXJ condition doesnu2019t have a value on it, it is just the gateway to the Tax Jurisdiction conditions JR1, 2, etc.

      There must be a standard way of dealing with this out there u2026. anyone?

      Thanks.

      Patrick