Using the Limited method to set up tax exemptions
To set up tax exemptions using the Limited method, use the following sessions:
Tax Code by Country (tcmcs0136s000)
Define and approve the exempt tax codes as described in Setting up tax codes by country. The tax rate must be zero percent. If a reference to the tax law must be printed on the invoice, link a text to the tax code.Tax Handling (tctax0138m000)
Select the exempt tax codes for the various tax order origins.Tax Parameters (tctax0100m000)
Select the following details:
Tax Exempt Level
Limited, to indicate that you defined exempt tax codes for countries.Search Sequence 1
Select one of the following values:
- To include the exempt tax codes in the search path for the tax code, select Standard in one of the Search Sequence 1 fields.
- If, in addition to the tax exemptions, you define tax exceptions, you must also select Exceptions by Country or Exceptions by Country Set in a Search Sequence 1 field.
- Use the Test Tax Scenario (tctax8100m000) session to test the resulting tax code and tax country in various situations, and make the necessary adjustments.