Tax Exceptions by Country (tctax1100m000)

Use this session to define tax code exceptions or tax exemptions for a specific order origin.

You can define the tax exceptions or exemptions for one specific business partner or for all business partners.

You can enter specific values for a number of logistic transaction details. For details that are not applicable or that you do not use as a criterion, you can select Not Applicable, or leave the fields empty.

If you do not want to use the department, the delivery terms, and/or the item as criteria, you can indicate this in the Tax Parameters (tctax0100m000) session.

In the Outcome of Tax Model group box, you can enter the tax code and tax country for the transactions that answer the specified criteria.

Performance aspects

The settings in this session could affect system performance and database growth. For more information, refer to Model tax exceptions.

 

Financial Company Set

The financial company set to which the tax exceptions apply.

LN applies the tax exceptions in all the companies of the company set.

Text

If this check box is selected, a text is present.

Order Origin

The type of orders to which the tax exceptions apply.

Allowed values

Tax Order Origin

Note

The project transactions are handled similar to sales transactions. If exceptions are required for project transactions, the Tax Order Origin must be set as Sales.

Buy-from / Sold-to BP

The buy-from (for purchase transactions) or sold-to (for sales transactions) business partner for which you define the exception.

If the exception applies to all sold-to business partners, leave this field empty.

Ship-from / Ship-to BP

The ship-from (for purchase transactions) or ship-to (for sales transactions) business partner for which you define the exception.

If the exception applies to all ship-to business partners, leave this field empty.

Sequence Number

The generated line sequence number.

Description

An optional description of the type of exception and/or the reason for the exception.

Weight

The priority of the exception.

The application uses the tax exceptions to determine a tax code for a transaction in the order of their weight. A high value reflects a high priority.

Exempt

If this check box is selected, the tax code represents a tax exemption.

Intercompany Trade Scenario

The intercompany trade scenario.

Note
  • This field is enabled only if the Order Origin is set to Intercompany Trade (Sales) or Intercompany Trade (Purchase).
  • The options Labor and Other are not applicable when setting up tax exceptions.
Role in Triangular Trade

For triangular trade transactions, this field contains the triangular trade role to which the exception applies. The role can be the actual supplier, the customer, or the intermediary.

If the exception applies to all roles or if triangular trade is not applicable, select Not Applicable.

VAT Based on

For Service transactions, this field contains the type of delivery to which the exception applies.

If the exception applies to all transactions, select Not Applicable.

Line Procedure

For Maintenance Sales transactions, this field contains the line procedure to which the exception applies. For details, refer to Line Procedure.

If the exception applies to all transactions, leave this field empty.

Tax Classification

The tax classification of the order.

By default, the tax classification of the order is the invoice-from or invoice-to business partner's tax classification.

Warehouse

The warehouse to which the tax exemption applies.

To set up tax exemption for purchase orders for a warehouse, specify the warehouse.

Ship-from Country

The ship-from country to which the exception applies.

If the exception applies to all countries, leave this field empty.

Ship-to Country

The ship-to country to which the exception applies.

If the exception applies to all countries, leave this field empty.

Buy-from Country

The buy-from country to which the exception applies.

If the exception applies to all countries, leave this field empty.

Sold-to Country

The sold-to country to which the exception applies.

If the exception applies to all countries, leave this field empty.

Service Location Country

For service transactions, this field contains the location to which the exception applies.

If the exception applies to all locations, leave this field empty.

Department Country

The country of the address of the sales office, purchase office, or service office.

If the exception applies to all countries, leave this field empty.

Delivery Terms

The delivery terms to which the exception applies.

If the exception applies to all transactions independent of the delivery terms, leave this field empty.

Point of Title Passage Country

If the point of title passage is located in this country, the exception applies.

If the exception applies to all transactions independent of the point of title passage, leave this field empty.

State / Province from

The state or province from which the goods are issued.

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.

If you set up sales and use tax, you can enter a value in this field.

State / Province to

The state or province to which the goods are delivered.

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.

If you set up sales and use tax, you can enter a value in this field.

Item

The item to which the exception applies.

If the exception applies to all items, leave this field empty.

Effective Date

The date when the tax exception or the tax exemption certificate take effect

Expiry Date

The date when the tax exception or the tax exemption certificate expires.

Tax Country

Your own company's tax country for transactions that answer the criteria.

Business Partner Tax Country

The tax country of the business partner for transactions that answer the criteria.

Use Domestic Tax Code

If this check box is selected, LN uses the domestic VAT code for transactions that answer the criteria.

You must define the domestic VAT code in the Tax Handling (tctax0138m000) session.

Tax Code

The tax code for transactions that answer the criteria.

If you select the Use Domestic Tax Code check box, you cannot enter a value in this field.

Exempt Certificate

The tax exemption certificate number.

If the Order Origin is Sales, enter the business partner's tax exemption certificate.

If the Order Origin is Purchase, enter your organization's tax exemption certificate or direct pay certificate number. .

Exempt Reason

The reason why the sold-to business partner or your own company is exempt from sales tax.

You can link a text to the reason code for a purchase tax exemption for a tax code and country combination in the Tax Exemptions for Purchase (tcmcs1560m000) session. LN prints the text on orders and invoices. In this way, you can link several tax exempt reasons with different texts to a single tax code by country combination.

If you use a tax provider, you must define tax exemption reasons. LN prints the exempt reasons on the sales invoices.