Symptom
While creating a transactional document, such as a sales order, the following warning message is displayed.
Company XYZ not registered in country United Arab Emirates, define Tax number as Type 2
The country-specific tax return type is required to be maintained in the Company Tax Arrangements for the UAE Tax Authority. However, the corresponding option is not available.
Environment
SAP Business ByDesign
Reproducing the Issue
To verify the current Company Tax Arrangement please go to:
- Tax Management work center
- Company Tax Arrangements view
- Select the Company Tax Arrangement maintained for country AE - United Arab Emirates
- Click on Edit
- Under the Tax Numbers subtab, attempt to select a Tax Number Type. It is not possible to select any Tax Number Type.
Cause
The United Arab Emirates is a special case where maintaining a tax number for the tax authority is not required.
As UAE does not charge taxes for the transactions supported on By Design there is no need to maintain tax type or tax number for tax authority.
The warning message displayed while creating a document in the system can be ignored.
This warning message appears only where there is no tax details maintained in the tax authority, however this warning message does not prevent the system from posting any document.
Resolution
This is a standard system behavior.
Keywords
Tax ID not mandatory, disregard warning message, by design behavior, sales order warning, tax authority settings, country-specific filing type, cannot choose tax number type, edit company tax arrangement, tax number type selection disabled, no tax setup required , KBA , SRD-FIN-TAX , Tax Management , How To
SAP Knowledge Base Article - Public