Tax code (SAP Business One)

A two-digit code that represents the specifications used to calculate and report the tax.

Tax codes in SAP Business One are used to identify the tax rate and the corresponding tax accounts for specific transactions. They enable the automated calculation and posting of taxes, which plays a central role in tax management. Tax codes should be defined carefully and ideally in collaboration with a tax consultant in order to fulfil tax law requirements.

Definition and parameters of control indicators

Tax codes are displayed under Administration > Definition > Financial accounting > Tax > Tax code created. The following parameters must be taken into account:

Tax ratePercentage value of the tax for the transaction.
Tax accountG/L account for tax posting.
Income tax accountAccount for purchase tax postings.
discountDefinition of possible cash discounts.
Validity dateDate from which the tax rate applies.

All tax codes are active by default. Indicators that are not required can be deactivated in the "Inactive" column.

Use of tax codes

Tax codes are used in various documents such as incoming and outgoing invoices or journal entries. They can be selected automatically using stored rules or manually in the respective document. Standards can be stored at both business partner and item level to simplify recurring transactions.

Important notes on use

Regular checksTax codes and tax accounts should be regularly checked for compliance with current tax law requirements.
DATEV exportFor export to DATEV, tax codes must be mapped with suitable posting keys.
Tax returns: The assignment of the tax codes to the tax return fields is essential for a correct advance VAT return.
Special cases: In exceptional situations such as Annual financial statements tax postings can be made directly to the tax account, provided that the "Automatic VAT" option is deactivated in the journal entry.
Versino Financial Suite: the Versino Financial Suite improves the handling and overview of tax codes in SAP Business One through specially customised functions for accounting, more transparency in reports and better integration with tax requirements such as the DATEV interface.