Symptom
The tax code for tax exemption is not selected correctly in your sales document.
Environment
SAP Business ByDesign
Reproducing the Issue
pre-requisite : You have created the sales quotes XYZ (XYZ represents the identification of a sales quote), the Account/Buyer ABC (ABC represents the identification of your account) is located in Austria. The Seller party is located in Germany and the Ship-from party is also located in Germany.
In the account master data, you have maintained a Tax Exemption as follow :
- Go to the Account management work center.
- Go to the Account view.
- Select the account ABC.
- Go to the Financial Tab.
- Select the Taxes sub tab.
- Go to the Tax Exemption.
Country AT- Tax Exemption reason : 1 - Tax exemption for sale
Steps to reproduce the issue :
- Go to the New Business work center.
- Go to the Sales Quote view.
- Select the Sales Quote XYZ.
- Go to the Items Tab.
- Select Item 10 > Tax Sub-tab.
You can see that the Tax Country is Germany, the tax code 501 - Domestic Supply (Standard Rate) and no tax exemption were applied.
Cause
In a Sales Document where the Ship-from party is Germany and the Ship-to party is Austria (or any other country in EU); the tax country will be defaults to DE - Germany. In order to have a tax exemption, you should create a tax exemption for the country Germany in the account master data.
Resolution
- Go to the Account management work center.
- Go to the Account view.
- Select the account ABC.
- Go to the Financial Tab.
- Select the Taxes sub tab.
- Go to the Tax Exemption.
Choose the country of the Ship-from party (DE-Germany in our example) and one of the following tax exemption : 7 - Tax Exempt According to §4, Nr. 7 UStG or 1 - Tax Exempt According to §4, 2 - 6 UStG. Once you have save your account master data the correct tax code should be triggered in your sales document with account ABC (e.g 513 - Exempt According to §4, Nr. 7 UStG if you have maintained Tax Exemption : 7 - Tax Exempt According to §4, Nr. 7 UStG).
Keywords
TAX Code, Tax Country; EU , KBA , AP-SLO , Sales Order Processing , How To