SAP Knowledge Base Article - Public

2186754 - Even if You Maintain The Tax Exemption Reason at Product Master Still System Picks Default Tax on The Product in Sales Order


Though you have maintained the tax exemption reason but system still puts default tax on the product in Sales Order.

Reproducing the Issue

  1. Go to the work center Sales Orders.
  2. Choose the view Sales Orders.
  3. Search for Sales Order ABC (ABC represents sales order ID)
  4. Open the order and go to View All.
  5. Navigate to tab Items and sub-tab Taxes.
  6. Here it can be seen that the system chose an default Tax Rate for the product.


If you go to the material master data here you can see that the field Region is maintained. Please keep this field empty as we don’t have region based tax calculation for CH - all regions have same rate and same behavior. if the region is maintained, then the system cannot determine the tax code properly. If you keep this field empty, it will do.


  1. Go to the product and Service portfolio work center.
  2. Choose Products view
  3. Find the Product.
  4. Choose edit button and open it.
  5. Open it in mode View All.
  6. Navigate to the tab Taxes.
  7. Here under Product tax classification view remove the Region field.


KBA , AP-TTE-TC , Tax Calculation , AP-SLO-SO , Sales Order , How To


SAP BUSINESS BYDESIGN 1708 ; SAP Business ByDesign 1711