The creation and use of tax codes in SAP Business One plays a central role in the area of VAT administration. These codes are decisive for the calculation of VAT amounts, both for the advance VAT return and for the VAT return. Other than ledger accountstax codes are used specifically for the calculation of tax amounts for deliveries and other services to other EU countries.

Creation of tax codes in SAP Business One

These tax codes are created in the "Administration" module under "Definition", "Financial accounting" and "Tax". In the "Tax codes" window, you can create the codes required for the company. For example, a typical SAP Business One client requires ten tax codes:

  • Five input tax codes for the purchasing area
  • five output tax codes for the sales area.

Setting options for tax codes

There are various setting options for creating tax codes. The coding of the tax codes is freely selectable. Inactive codes cannot be used when entering documents. The category also determines whether a tax code is used in purchase or sales documents. The "EU" characteristic determines whether documents with this tax code are relevant for the recapitulative statement. Further specifications relate to the type of service, such as intra-Community deliveries, other services or triangular transactions, as well as the definition as acquisition tax or reverse charge tax.

Tax code SAP business One

Reverse charge procedure

A special case is the so-called reverse charge procedure, in which the VAT liability is transferred to the recipient of the service. This applies to intra-Community acquisitions from other EU countries and certain situations under § 13b UStG. If an input tax code with this feature is used, the purchase tax is also posted in addition to the input tax. For special sales transactions, such as tax-free EU deliveries or services that are subject to the reverse charge procedure, certain mandatory information is required on invoices. These can be defined in the "Text for tax code on invoice" column.

APPENDIX DETAILS Automatic Journal Entries in SAP Business One

Automatic journal entries in SAP Business One

Automatic journal entries in SAP Business One is one of the daily benefits that can be realised with every entry through the integration of the financial accounting ...
SAP Business One article groups

Article groups in SAP Business One

Careful management and structuring of article groups is crucial to ensure efficient financial accounting and precise analyses. Especially ...
SAP Business One Feature Package 2405

What's new in SAP Business One 10.0 Feature Package 2405

The latest Feature Package 2405 for SAP Business One 10.0 brings numerous improvements and new functions. These relate to the adaptability, ...
SAP Business One Currencies

SAP Business One and dealing with currencies

In today's globalised business world, dealing with different currencies is an unavoidable challenge for companies. SAP Business One, a ...
Budgets in SAP Business One

Budgets in SAP Business One

The budgets in SAP Business One make it possible to manage and monitor the expenses and income that arise from company expenditure. The aim ...
SAP Business One Access Rights Administration

Manage SAP Business One access rights

The administration of SAP Business One access rights plays a central role. This can quickly become a challenging aspect in the management of ...
Wird geladen ?