3454204 - The Tax Code Determined for a Service Product is not as Expected if the Ship-to Party is the Contact of Account

 The Tax Code determined in a Sales Document e.g. a Sales Order for a Service Product is not as expected if the Ship-to Party is the Contact of Account.

SAP Business ByDesign

1. Go to the Sales Orders work center.
2. Select New Sales Order from Common Task.
3. Add the account ABC in the sales order (ABC represents the ID of the account).
4. Add ship-to party XYZ (XYZ is the contact maintained under account ABC).
5. Go to the Items tab of the sales order and add a service DEF (DEF represents the ID of the service).
6. Select the Taxes subtab.

The Tax Code is Domestic Sale, Standard Rate.

You expected Non-EU Export of Services, Reverse Charge (in an Non EU scenario) or EU Sale of Services, Reverse Charge (in an EU scenario).

The tax determination logic in the system differs if a ship-to party is not a company:

1. If you select contact XYZ as ship-to, then the condition Is Service Recipient is company? becomes False 
   -> hence the Tax Code is determined as Domestic Sale.
2. If you select account ABC as ship-to, then the condition Is Service Recipient is company? becomes True 
   -> hence the Tax Code is determined as Non-EU Export of Services, Reverse Charge (in an Non EU scenario) or EU Sale of Services, Reverse Charge (in an EU scenario).

Service; Tax Code; Service Recipient; Ship-To; Person; Company; Employee; 501; 530; ; 310; 550; EU Sale of Services; Reverse Charge; Domestic Sale of Services; Non-EU Export of Services,  , KBA , AP-SLO-SO , Sales Order , Problem