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Former Member
Aug 04, 2012 at 10:46 PM

Company Code Country Used for Tax Calculation



I'm creating a sales order with the company code in Switzerland (CH) and delivering plant in Spain (ES). The ship to party is located in Spain as well and my understanding for factors determining the MWST tax rates are Departure country (Plant) + Destination country (Ship to Party) + Tax classification from the customer master + Tax classification from the material master. If my understanding is correct, domestic tax rates should be applied as both the supplying plant and ship to party are located in Spain. However, the system takes the departure country from the company code and uses the export tax rates. Can someone please explain why would SAP use the company code country and how do we fix the issue? Thank you for your help.