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Sales tax exemption based on material usability

Hello Gurus

We have a unique requirement for tax calculation. For some entities in our organization, sales tax are exempted based on the material usability by the customer. Therefore we need to add some attribute in the Sales Order line that will drive the tax exemption status. Is there any standard configuration that could take care for this? If not, could you please give an example on how did you guys approach in your previous experience

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  • Posted on Dec 08, 2011 at 02:22 AM

    FYI, Taxes depends upon the

    - tax classification for Customer

    - tax classification for material

    - Tax depart. country, i.e., Region of Delivery Plant

    - Tax dest. country, i.e., Region where the material shipped means Ship-to Party country

    If you maintain access including above fields, say, either of following:

    - Country / Plant / Region / Region / Tax ClasCust1 / Tax ClassMat1

    - Country / Region / Region / Tax ClasCust1 / Tax ClassMat1

    - Country / Country / Tax ClasCust1 / Tax ClassMat1

    For configuration, refer following link:

    [Define Tax Determination Rules|http://www.sap-img.com/sd009.htm]

    For exemption, in VK11 & customer Master for the TAX Condition type, maintain tax indicator as 0.

    Refer following SAP Consulting Notes:

    - Note 872449 - the sales tax identification

    - Note 191932 - Incorrect tax classifications in the SD document

    Even you can put Tax classification, Materials Tax classification & Customer Tax classification in SDN or google search to see discussed topic links on the same for reference, like,

    Regards

    JP

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