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Former Member

Company Code Country Used for Tax Calculation

Hi,

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.

Regards,

Pratheb

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    author's profile photo Former Member
    Former Member
    Posted on Aug 06, 2012 at 05:24 PM

    Hi All,

    Found the answer. We had OSS note 10560 implemented and hence the deviation. I need to now understand why was this implemented. Thanks for all your time and help.

    Regards,

    Pratheb

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  • Posted on Aug 06, 2012 at 03:53 PM

    Hi,

    This is working as system design. For travelling & visa purposes only Swiss is considered as part of EU countries. Trading between other EU countries & Swiss is treated as "Export" sales ( not domestic sales).

    You can even check in Table:T005, against CH - EU country field is not marked, but ES its marked.

    Another test scenario, if you wish- you can test like create Order in comp code: Germany(DE) instead from CH, then its treated as "Domestic" sales.

    Check the routine, you ll observe that system reads the country from comp code & compares from this table.

    eg: Sales from Country :Cyprus to other EU countries.

    Regards,

    Reazuddin MD

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  • Posted on Aug 05, 2012 at 11:47 AM

    First check in sale order what delivering plant is flowing. Next ensure that the right country is assigned to that plant in OX10.

    G. Lakshmipathi

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  • author's profile photo Former Member
    Former Member
    Posted on Aug 05, 2012 at 03:08 PM

    Hi,

    First explain me why your making dispatch from Spain plant and ship to party is also belongs spain means why want use the company code of Switzerland instead of Spain company code

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