Usage of Tax Category Information

Introduction

A step towards a fully automated tax calculation process can be made by using the information about the tax categories in the customer master data. To achieve this, it is necessary that the assignment between the tax categories and condition types be maintained. For each tax, exactly one tax category is required. Taxes for which the company code is not an agent should be left out of the calculation procedure.

 

Usage for Determination of being Subjected

The information about the tax categories, which the customer is subjected to, is processed by adding a requirement formula to the corresponding condition type in the SD calculation procedure. With this requirement formula it is checked whether the customer is subjected to this tax category or not, also the dates of being subjected are checked. Therefore the requirement formulas 81 and 82 are delivered with the localization. With these formulas the corresponding condition type is suppressed if the customer is not actually subjected to a certain tax category.

This is not needed for all taxes in Argentina. Some taxes like VAT surcharge or VAT itself have clear dependencies from certain entities like the fiscal type. Please check very closely for which taxes you want to use this technique

 

Usage of tax category information for exemption

It is also possible for tax categories with exemption to apply this exemption automatically. Therefore the system must be set up in a certain way, a new condition type must be added. The original condition type will take the unmodified values form the condition tables and keep this value, this condition type should be marked as being statistical. This condition type is passing the condition value via an intermediate field to the new one, which is then applying the exemption on it. The assignment of the tax category must then be done to this new condition type. As an example for this the condition value formula 331 (delivered with the localization but the relevant coding is commented out) should be regarded more closely.