To set up tax exemptionsTransactions with specific business partners, involving specific goods, and/or with their origin or destination in certain countries or areas, can be exempt from tax. Sales invoices for transactions that are exempt from tax must have zero tax amounts. Some enterprises are exempt from destination sales tax within the jurisdiction of certain tax authorities. Invoices for sales to a customer with a valid tax exemption must have zero tax amounts. If your business is exempt from sales tax, your suppliers must not include the tax amount on their invoices. To an organization that is exempt from tax, the tax authorities supply a tax exemption certificate. You must register the tax exemption certificate numbers of your sold-to business partners. To supply your tax exemption certificate number to your buy-from business partners, you must print the certificate number on the purchase orders. If you have one or several direct pay certificates, you can set up the direct pay tax in the same way as tax exemptions. Tax exemptions if you use a tax provider The use of a tax provider has the following effect on the tax exemption setup:
In the Tax Exceptions by Country (tctax1100m000) or the Tax Exceptions by Country Set (tctax1101m000) session, you can define exempt tax codes for purchase orders. and specify your company's tax exemption certificates. For every tax exemption certificate, you must specify the effective date, the expiry date, and the exempt reason. If you use a tax provider, you can define exempt tax codes and specify tax exemption certificates for purchases by country and state/province. If you do not use a tax provider, you can specify tax-exemption certificate numbers by country and tax code. Tax exemption details In many countries, one or several of the following details must be printed on orders, invoices, and reports with an exempt tax code:
Tax exemption setup methods In the Tax Parameters (tctax0100m000) session, you must select a tax exemption setup method. Two methods are available:
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