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 „Setup“, „Financials“, and „Taxes“. In the „Tax Codes“ window, you can create the codes required for the company. In a typical SAP Business One client, for example, ten tax codes are needed:
- Five input tax codes for the purchasing area
- five output tax codes for the sales area.
Setting options for tax codes
When creating tax codes, there are various setting options available. The coding of tax codes is freely selectable. Inactive codes cannot be used during document entry. The category also determines whether a tax code is used in purchasing or sales documents. The „EU“ characteristic specifies whether documents with this tax code are relevant for the recapitulative statement. Further specifications relate to the type of service, such as intra-Community supplies, other services, or triangular transactions, as well as the definition as acquisition tax or reversal tax.
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. When using a withholding tax code with this characteristic, acquisition tax is also booked for the withholding tax. For specific sales transactions, such as tax-free EU deliveries or services subject to the reverse charge procedure, certain mandatory details are required on invoices. These can be specified in the „Text for tax code on invoice“ column.
MARIProject 8.0.000: New design, expanded production and optimised processes
New features in SAP Business One 10.0 FP 2508
Accruals and deferrals in SAP Business One
SAP Business One web client - additional feature or strategic step
Elster 2025 for SAP Business One
