Tax registration prerequisites

Before you can set up the tax registration, you must define the necessary data. Which data is required also depends on the tax type, which can be value added tax (VAT), sales tax, or withholding tax.

Common prerequisites

For all types of tax, you must set up or define the following data:

  • In the Implemented Software Components (tccom0100s000) session, select the Tax check box.
  • In the Countries (tcmcs0510m000) session, define the Countries.
  • In the General Company Data (tccom0102s000) session, the company's home country. If you select the EU Member State check box for the country in the Countries (tcmcs0110s000) session, LN knows that the company resides in a European Union country.
  • In the Business Partner (tccom4100s000) session, define business partners with only the invoice-from and pay-to roles for the authorities to which you pay the tax or social contribution. You must select the Collection Office check box.
  • In Financials, the ledger accounts and dimensions to which LN must post the tax amounts.
Value added tax (VAT) and EU tax prerequisites

For value added tax including EU tax, you must set up or define the following data:

  • In the General Company Data (tccom0102s000) session, enter your company's tax number.
  • In the Implemented Software Components (tccom0100s000) session, select the EU Sales Listing and the EU Statistical Reporting check boxes as applicable.
  • For countries in the European Union, select the EU Member State check box in the Countries (tcmcs0110s000) session.
Sales tax prerequisites

For sales tax, you must set up or define the following data:

  • Select the Destination Sales Tax Applicable check box in the COM Parameters (tccom0000s000) session.
  • If you use a tax provider, follow the steps as described in Setting up the tax-provider interface.
  • The tax authorities in each country, in the Tax Authorities (tcmcs1137m000) session.
  • You can optionally group the tax authorities in tax authority groups which you define in the Tax Authority Groups (tcmcs1140m000) session.
  • For destination sales tax, the addresses of the warehouses from which you ship the goods and the delivery addresses, in the Addresses (tccom4530m000) session.
  • For destination sales tax, the GEO codes of the address, in the Addresses (tccom4530m000) session. If you use a tax provider, you must use the tax provider to generate the GEO code of each address.
  • The reasons for tax exemption, in the Reasons (tcmcs0105m000) session.

Continue with Setting up tax codes by country.

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