3303249 - 40% of Tax Deductibility for Italy VAT Code

You are looking for an important VAT Code for Italy. It is related to the following law: (Articolo 19 bis 1 del Dpr 633/1972, al comma 1, lettera c), where you need do deduct 40% of the VAT, but you didn't find the option of 40% available to create a custom tax code.

SAP Business ByDesign

1. Go to Business configuration work center.
2. Go to Overview view.
3. Search for Tax on Goods and Services activity.
4. Select the option Define Tax Codes.
5. Add a new Tax Code using a 10 - Domestic Purchase Tax Event.
6. In Tax Type select: "VAT", Tax Rate Type: "Standard", in Tax Deductibility there is no option for 40%.

The 'Partially Deductibility' option in the dropdown list of 'Tax Deductibility' is configured to 40%. Just that '40%' is not explicitly mentioned in the description of the deductibility code.

This is the expected system behavior.

The 'Partially Deductibility' is configurated to 40%, so you can use this option to create your own Z* tax code with 40% of tax deductibility for Italy VAT Code.

Tax Deductibility; Italy VAT Code; 40%; 10 - Domestic Purchase Tax Event; Partially Deductibility; Articolo 19 bis 1 del Dpr 633/1972, al comma 1, lettera c; Tax; , KBA , AP-TTE-GLO , Cross-Country Extensions , How To