Describes the items for which no VAT has to be paid.
1. definition
VAT exempt Turnover are deliveries or services that not subject to value added tax are subject to. This can apply both to Domestic, EU and third country business apply.
2. tax status in SAP Business One
Of the Tax status of a business partner determines whether it is exempt from VAT:
- Domestic obligatory: Subject to VAT within your own country
- EU acquisition: Intra-Community deliveries, possibly tax-exempt if the business partner has a valid VAT number
- third country: Tax exemption for business partners outside the EU
3. effects on vouchers
- In the case of business partners exempt from VAT No sales tax recognised on vouchers.
- the Tax calculation not applicableprovided that the tax status of the business partner is "liberated" is set.
- The selection of the tax code in the Purchasing or sale influences the correct Journal entry not directly.
4. tax code
- Special tax codes are used for VAT-exempt sales.
- A tax code can be used as non-deductible defined and with a corresponding account be linked.
5. tax status in the master data
- In the Business partner master data the tax status is defined, which determines the Automatic selection of the tax code influenced in vouchers.
- Example: For taxable status, the tax code A2 is automatically selected if no other default settings are available.
6. tax reports and legal requirements
- In Tax reports sales exempt from VAT are shown separately.
- the Correct recording is decisive for the Advance turnover tax return and compliance with legal requirements.
7 Special features of international transactions
Intra-Community supplies
- For intra-Community supplies, companies can under certain conditions be exempt from sales tax.
- Prerequisite: A valid UID number of the customer.
Third-country business
- For business partners based in Third countries the tax status can also be "liberated" be.
8. article master data
- In the item master data a specific tax code can be stored.
- For articles with reduced tax rates (e.g. 7% or 5%) the corresponding tax code must be entered manually, as by default 19% is preset.
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