Tax calculation

[former_member623826]

Hello,

I am facing an issue and so I wanted to know how is tax setting configured for sales and billing document. In the Invoice header, there is field "Origin of sales tax ID number" (VBRK-STCEG_H). What is its significance and where does its value come from? There is another field "Country of sales tax ID number" (VBRK - STCEG_L). What is its significance? There is another important field "VAT Registration number" (VBRK-STCEG). What does it mean and whose VAT registration number is picked in the invoice (Sold-to, ship-to or payer)? I tried to read from forums but could not get a concrete/lucid answer.

Please help.

Thanks in advance,

Abhinav

[Lakshmipathi]

I wanted to know how is tax setting configured for sales and billing document

Below is the explanation from standard documentation

Several parameters influence the tax amounts and tax rates determination. The most important ones include:

Delivering country (origin)

Tax class of the ship-to partner

Tax class of the material being shipped

Tax calculation date

Jurisdiction code from ship-to-party (customer)

Jurisdiction code from ship-from address (plant)

Point-of-order acceptance

Point-of-order origin

G. Lakshmipathi

[jignesh_mehta3]

Hello,

1. Origin of sales tax ID number" (VBRK-STCEG_H): Is based on the setting here:

IMG - Sales and Distribution - Basic Functions - Taxes - Maintain Sales Tax Identification Number Determination

2. Country of sales tax ID number" (VBRK - STCEG_L): Every Country has specific settings like Length of VAT Number, Number of digits in PIN code etc. Thus here the Country of Sales Tax ID controls the length of VAT No.

3. VAT Registration number" (VBRK-STCEG). check the FI help for the same & it is self explanatory.

Hope this helps,

Thanks,

Jignesh Mehta

[former_member623826]

Whose VAT registration number is populated in the invoice (sold-to, ship-to or payer)?

[jignesh_mehta3]

VAT No. is determined based on Setting at

IMG - Sales and Distribution - Basic Functions - Taxes - Maintain Sales Tax Identification Number Determination

The following is taken from SAP Standard Documentation:

If you leave the field above blank, the standard priority rule works as follows:

1. If the payer has a VAT ID number and RG <> AG, then the tax number and tax classification are copied from the payer (in this case, the ship-to party is not relevant).

The tax number is taken according to the 'tax country of destination'.

2. If 1. does not apply:

If the ship-to party has a VAT registration number and the sold-to party does not, tax number and tax classification are copied from the ship-to party.

3. If 2. does not apply:

Tax number and tax classification are copied from the sold-to party.

If you enter A, tax number and tax classification are generally copied from the sold-to party.

The tax number is copied according to the 'country of destination relevant for taxes'.

If you enter B, tax number and tax classification are generally copied from the payer.

The tax number is copied according to the 'country of destination relevant for taxes'.

Hope this clarifies,

Thanks,

Jignesh Mehta

[Lakshmipathi]

Go through the following note which will explain how VAT registration number will flow

Note 371764 - VAT registration number: Destination country

G. Lakshmipathi

[former_member623826]

In the note it is mentioned "The VAT registration number is determined from the country of the customer

in his/her master data first.". But the "customer" means whom - sold-to, ship-to or payer?

[jpfriends079]

Whereever, when we talk about TAX for customer, it always Ship-to Party(SH).

Regards

JP

[former_member623826]

Then what is the significance of the field "Origin of sales tax ID number" (VBRK-STCEG_H) ? I have read through the F1 help document, it was not very clear to me, so please give me some more lucid explanation.

Is this field independent of Vat registration number? or is there some dependency?

[jpfriends079]

You can find STCEG_H-Origin of sales tax ID number in following table apart forn VBRK:

FKK_JFRK_SHORT	- Header Data for IS-M/SD Billing Document - Extracts
JFRK	- IS-M/SD: Billing - Header Data
JHTFK	- IS-M/AM: Settlement Documents (Billing, Commission) - Header

Regards

JP