Setting up tax codes by country

To set up tax codes for value added tax and sales tax:

1. In the Steuercodes (tcmcs0137m000) session, define a tax code for each type of tax, including tax types with zero tax amounts.

2. In the Steuercode nach Land (tcmcs0136s000) session, set up the tax details, including:

   • Assign the tax codes to the home country of the financial company.
   • Specify whether the tax consists of a single tax rate or of multiple tax rates, for example, for sales tax.
   • Optionally link a tax authority to the tax code. For details, refer to Tax authorities.
   • If required, add a text to the tax codes containing the reference to the applicable tax law chapter. LN prints the text on invoices with this tax code.

   For consumption tax, enter the details as described in Consumption tax.

3. For a singular tax code, define the tax rate in the Einstufige Steuersätze (tcmcs0132m000) session. You can choose Einstufige USt-Sätze from the appropriate menu of the Steuercodes nach Land (tcmcs0536m000) overview session.

4. For multiple tax codes, for example, for sales tax, take the following steps:

   • Specify the details in the Mehrstufige Steuercodes (tcmcs0535m000) session. You can choose Mehrstufige USt-Sätze from the appropriate menu of the Steuercodes nach Land (tcmcs0536m000) overview session.
   • Define the tax rates of each tax code line in the Mehrstufige Steuersätze (tcmcs0133m000) session. You can choose Mehrstufige USt-Sätze from the appropriate menu of the Mehrstufige Steuercodes (tcmcs0535m000) overview session.

5. Specify the ledger accounts to which LN must post the tax amounts, for each financial company. In each financial company of your system, use the following sessions:

   • Kaufmännische Daten für einstufige USt-Code-Positionen (tfgld0571m000) for single tax codes.
   • Kaufmännische Daten für mehrstufige USt-Code-Positionen (tfgld0570m000) for multiple tax codes.
6. If you prepare tax declarations based on a tax declaration master, you must also define a tax settlement tax code for the country. LN links the USt-Verrechnung tax code to the payments you make to the collection office. On the tax analysis reports, this tax code represents the tax payments.

7. Approve the tax codes

   Ensure that all the tax code details are correct, and in the Steuercode nach Land (tcmcs0136s000) session, select the Genehmigt check box. LN performs a consistency check on the tax code details.

   Before you can add a tax code to a group tax code or test the tax model, you must approve the tax codes. LN can only link approved tax codes to the transactions.

   After you approve the tax code, you can no longer change the following details:

   • Steuerart
   • USt-Art
   • Einstufige USt
   • Aufgewendete Vorsteuer (Am)
   • Gruppensteuer
   • Steuerkategorie
   • In USt-Buch aufnehmen

Continue with To set up the tax rates.