Defining default tax codes

In many countries, different tax rates apply to transactions within the country and transactions across country borders. In addition, special tax rules can apply to freight invoices.

To define the default tax codes for the various types of transactions:

1. Set up the tax codes as described in Setting up tax registration. You must define a tax code for each tax rate in each country.
2. In the Steuerabwicklung (tctax0138m000) session, specify the default tax codes in each country. If a tax code applies to a specific item, you must specify the item. LN applies the tax codes with an empty Artikel field to all the items for which you do not define specific tax codes.

   Note: 

   The Steuerabwicklung (tctax0135m000)session is applicable only if the Status concept is set to Aktivand the old Steuerabwicklung (tctax0138m000) session is applicable if the Status concept is set to other thanAktivin theKonzeptaktivierung (tcemm4600m100) session.

   For domestic tax, the search path for the tax code includes the tax codes of the item data. For more information, refer to Item tax codes for domestic tax.

You can define default tax codes for the following types of tax:

• Domestic VAT
• Import VAT
• Export VAT
• Own goods movement
• Triangular trade

Item tax codes for domestic tax

For domestic tax, you can also link default tax codes to items or item groups in the following sessions:

• Artikel - Verkauf (tdisa0501m000).
• Artikel - Einkauf (tdipu0101m000).
• Artikel - Voreinstellungen Verkauf (tdisa0102s000).
• Artikel - Voreinstellungen Einkauf (tdipu0102m000).

LN uses these tax codes if you do not define a specific domestic tax code for the item in the Steuerabwicklung (tctax0138m000) session.

Default EU VAT codes

If your company's home country is a member of the European Union, you must define specific tax codes for import and export to other EU countries. Special tax rules apply to freight invoices.

You can define the following default EU tax codes:

• Intracommunautair transactions (ICT Sales VAT)
• Intracommunautair transactions (ICT Purchase VAT)
• Fracht Inner-EU-Verkauf
• Fracht Inner-EU-Einkauf

LN uses the VAT codes for intra-EU transactions if the following is true:

• The business partners involved are legal persons, in other words, the business partners have a tax number in the country concerned.
• The transactions are posted to financial companies that reside in EU countries.

The tax rates for intra-EU transactions apply to the following transaction types:

• Sales transactions and purchase transactions between your company and external business partners.
• Sales transactions and purchase transactions between affiliated-company business partners.

Default tax codes for financial transactions

For transactions that you create in Finanzwesen, you can link a default tax code to a ledger account.

In the Kontenplan (tfgld0508m000) session, select the default tax code in the Voreinstellung USt-Code field. For example, this is the default tax code for journal vouchers that you create for the ledger account.