Defining tax exceptions

For situations in which the derived tax code is incorrect, you can define tax exceptions. A tax exception is a set of transaction details for which you define a tax code or tax country and business partner tax country other than the values that result from the standard tax code or tax country derivation.

For example, if you want to use a specific tax code for purchase transactions with a specific ship-from country and delivery terms, you can define a tax exception.

Note: 

If you set up withholding tax, you must use this procedure to link the group tax codes to the business partner tax classifications.

To define tax exceptions:

  1. In the Firmensätze (tcemm1175m000) session, define one or more financial company sets.

  2. In the Firmen nach Firmensatz (tcemm1176m000) session, add financial companies to the company set. Ensure that each financial company belongs to only one financial company set.

    To define the tax exceptions for a single financial company, create a company set that contains only one company.

  3. For the financial company set, define the tax exceptions in one of the following ways:

    • For individual countries, use the Steuerausnahmen nach Land (tctax1100m000) session.

    • Steuerausnahmen nach Ländersatz (tctax1101m000)

      If the tax exception applies to several countries, use the Steuerausnahmen nach Ländersatz (tctax1101m000) sessions.

      • First, in the Ländersätze (tccom1180m000) session, define country sets and in the Länder nach Ländersatz (tccom1181m000) session, add countries to the country set.
      • Next, run the Steuerausnahmen nach Ländersatz (tctax1101m000) session to define the tax exceptions for the country set.

  4. In the Steuerparameter (tctax0100m000) session, select the following details:

    • Steuerbefreiungsebene

      Select the method you use to define tax exemptions. If you do not define tax exemptions, select Eingeschränkt.

    • Suchfolge 1

      Select one of the following values:

      • In one of the Suchfolge 1 fields, select Ausnahmen nach Land or Ausnahmen nach Ländersatz, as applicable.
      • If, in addition to the tax exceptions, you define tax exemptions, you must also select Befreiungen nach Land or Befreiungen nach Ländersatz in a Suchfolge 1 field.
  5. Use the Steuerszenario für Probelauf (tctax8100m000) session to test the resulting tax code and tax country in various situations, and make the necessary adjustments.
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