| Tax Exceptions by Country Set (tctax1101m000) |  |
| Use this session to define tax code exceptions for a specific order origin. The exceptions apply to all the countries of a tax country set. You can define the tax exception for one specific business partner or for all sold-to business partners and/or ship-to business partners. In the Logistic Transaction group box, you can enter specific values for a number of logistic transaction details. For details that are not applicable or that you do not use as a criterion, you can select Not Applicable, or leave the fields empty. If you do not want to use the department, the terms of delivery, and/or the item as criteria, you can indicate this in the Tax Parameters (tctax0100m000) session. In the Outcome of Tax Model group box, you can enter the tax code and tax country tax country set for the transactions of which the transaction details have the specified value or values. Note In the Tax Parameters (tctax0100m000) session, you can indicate whether you define tax code exceptions separately for each country, or by tax country set. To distinguish between the countries of a country set For the transactions between the countries of a single country set, you can use the Equal to fields to indicate whether the countries must differ. To mark a country, enter a letter in the Equal to field. If another country must be different, enter a different letter in its related Equal to field. For countries that must be the same, enter the same letter. Example For example, country set NBD contains the countries The Netherlands, Belgium, and Germany. You model exceptions for transactions between these countries. If you leave all the Equal to fields empty, the exceptions also apply to all the transactions within each country. However, this result is not correct because domestic tax applies to those transactions. To indicate that the ship-from country must differ from the ship-to country, do the following: In the Equal to field of the Ship-from Country Set field, enter A. In the Equal to field of the Ship-to Country Set field, enter B. As a result, the modeled exception only applies if the goods cross a country border. If you want to add the condition that the buy-from country equals the ship-from country, enter A in the Equal to field of the Buy-from Country Set. On the other hand, if the buy-from country must differ from both the ship-from country and the ship-to country, enter a different letter in the Equal to field of the Buy-from Country Set. For example, enter E. Performance aspects The settings in this session could affect system performance and database growth. For more information, refer to Model tax exceptions. Related topics To define tax exceptions To set up tax exemptions To set up withholding tax and social contributions
Fields | Description
Financial Company Set | The financial company set to which the tax exceptions apply. ERP LN applies the tax exceptions in all the companies of the company set.
Text | If this check box is selected, a text is present.
Order Origin | The type of orders to which the tax exceptions apply.
Buy-from / Sold-to BP | The buy-from (for purchase transactions) or sold-to (for sales transactions) business partner for which you define the exception. If the exception applies to all sold-to business partners, leave this field empty.
Ship-from / Ship-to BP | The ship-from (for purchase transactions) or ship-to (for sales transactions) business partner for which you define the exception. If the exception applies to all ship-to business partners, leave this field empty.
Sequence Number | The generated line sequence number.
Description | An optional description of the type of exception and/or the reason for it.
Weight | The priority of the exception. ERP LN uses the tax exceptions to determine a tax code for a transaction in the order of their weight. A high value reflects a high priority.
Exempt | If this check box is selected, the tax code represents a tax exemption.
Country Data
Ship-from Country Set | The ship-from country set that contains the countries to which the exception applies. If the exception applies to all countries independent of their country set, leave this field empty.
Equal to | To mark a country, enter a random alphabetic character in this field. To indicate that another country must be different, enter a different character in its related Equal to field. To indicate that another country must be the same, enter the same character in its related Equal to field. Related topics To distinguish between the countries of a country set
Ship-to Country Set | The ship-to country set that contains the countries to which the exception applies. If the exception applies to all countries independent of their country set, leave this field empty.
Buy-from Country Set | The buy-from country set that contains the countries to which the exception applies. If the exception applies to all countries independent of their country set, leave this field empty.
Sold-to Country Set | The sold-to country set that contains the countries to which the exception applies. If the exception applies to all countries independent of their country set, leave this field empty.
Service Location Country Set | For service transactions, this field contains the location to which the exception applies. If the exception applies to all countries independent of their country set, leave this field empty.
Department Country Set | The country set of the address of the sales office, purchase office, or service office. If the exception applies to all countries independent of their country set, leave this field empty.
Terms of Delivery | The terms of delivery to which the exception applies. If the exception applies to all transactions independent of the terms of delivery, leave this field empty.
Point of Title Passage Country Set | If the point of title passage is located in this country set, the exception applies. If the exception applies to all transactions independent of the point of title passage, leave this field empty.
Transaction Data
Role in Triangular Trade | For triangular trade transactions, this field contains the triangular trade role to which the exception applies. The role can be the actual supplier, the customer, or the intermediary. If the exception applies to all roles or if triangular trade is not applicable, select Not Applicable.
VAT Based on | For Service transactions, this field contains the type of delivery to which the exception applies. If the exception applies to all transactions, select Not Applicable.
Line Procedure | For Maintenance Sales transactions, this field contains the line procedure to which the exception applies. For details, refer to Line Procedure. If the exception applies to all transactions, leave this field empty.
Tax Classification | The tax classification of the order. By default, the tax classification of the order is the invoice-from or invoice-to business partner's tax classification.
Warehouse | The warehouse to which the tax exemption applies. To set up tax exemption for purchase orders for a warehouse, specify the warehouse.
Item | The item to which the exception applies. If the exception applies to all items, leave this field empty.
Effective Date | The date when the tax exception or the tax exemption certificate take effect
Expiry Date | The date when the tax exception or the tax exemption certificate expires.
Outcome of Tax Model
Tax Country | Your own company's tax country for transactions that answer the criteria.
Use Domestic Tax Code | If this check box is selected, ERP LN uses the domestic VAT code for transactions that answer the criteria. You must define the domestic VAT code in the Tax Handling (tctax0138m000) session.
Tax Code | The tax code for transactions that answer the criteria. If you select the Use Item Tax Code check box, you cannot enter a value in this field.
Business Partner Tax Country | The tax country of the business partner for transactions that answer the criteria.
Exempt Certificate | The tax exemption certificate number. If the Order Origin is Sales, enter the business partner's tax exemption certificate. If the Order Origin is Purchase, enter your organization's tax exemption certificate or direct pay certificate number.
Exempt Reason | The reason why the sold-to business partner or your own company is exempt from sales tax. You can link a text to the reason code for a purchase tax exemption for a tax code and country combination in the Tax Exemptions for Purchase (tcmcs1560m000) session. ERP LN prints the text on orders and invoices. In this way, you can link several tax exempt reasons with different texts to a single tax code by country combination. If you use a tax provider, you must define tax exemption reasons. ERP LN prints the exempt reasons on the sales invoices.