3163916 - Custom Import VAT Tax Event and Tax Code Does not Calculate the Tax Amount

You have created an import tax event, assigned to standard tax calculation procedure 200003 - Import VAT and associated to a corresponding custom tax code. However, when selecting the the custom tax code in the supplier invoice, the tax amount remains zero.

SAP Business ByDesign

1. Go to Supplier Invoicing work center.
2. Under Common Tasks, click New Invoice Without Purchase Order.
3. Input the required parameters.
4. Go to Items tab and add a new item.
5. Under Basic Data tab, select type as Import VAT Debit Item or Import VAT Credit Item.
6. Add the corresponding line item quantity and amount.
7. Go to Taxes and Tax Details tab.
8. Select your custom import tax code.

You see that the Net Tax Base Amount is populated, but the Tax Amount remains zero.

You expect the tax amount to be the same as the line item amount, as described in the localization toolkit how to document "Create Tax Content for NonLocalized Countries in SAP Cloud Applications Studio".

The tax rate being derived for the associated tax code is 0%. Therefore, the Net Base Amount is updated with the line item amount, but tax amount remains 0,00 due to 0% rate.

For Import VAT calculation as in this case, taxes are calculated backwards as long as you have a tax rate not equal to 0%. In case you do have a 0% tax rate, no (import) taxes are due and hence the amount input in the line item is taken as the tax base amount and the taxes determined as 0 (due to 0% tax rate).

In other words, in the Import case, you usually have your import tax document available stating which import taxes you have to pay. So in fact you already know which taxes you have/had to pay, but the system needs to calculate also the tax net base amount. So, the input amount provided in the case of Import VAT Calculation is that the provided amount is considered as tax amount and the tax net base amount is determined based on the tax amount and tax rate (with the exception on 0% tax rate, in this case the provided amount is considered as the tax net base amount and the tax amount is 0 as no taxes are due).

In the How-to document "Create Tax Content for NonLocalized Countries in SAP Cloud Applications Studio" from the localization toolkit, it says that:

If TaxRate = 0 .
TaxBaseAmount = TaxAmount
Else.
TaxBaseAmount = TaxAmount * 100 / rate
Endif.

Hence, the documentation also states that the input (TaxAmount) is taken as TaxBaseAmount, as described above. So, in fact the taxes are getting calculated, but when you have a 0% tax rate, then the tax amounts are also 0.

Therefore, if you want a tax amount to be calculated, you need to maintain a tax rate different than 0% via your add-on.

Localization Tooklit. VAT Withholding. Import Tax. Supplier Invoice. PDI. Studio. Tax Rate Schedules. Import VAT. , KBA , AP-TTE-GLO , Cross-Country Extensions , Problem