Foreign Customers/Vendors (SAP Library

Foreign Customers/Vendors

To define specific tax rates when dealing with foreign customers or vendors, a special processing logic is implemented as follows:

Foreign customer/vendors do not need a Brazil-specific jurisdiction code. The jurisdiction code in foreign customer/vendor master records is not used in tax processing.

The country maintained in the foreign customer/vendor master record is assigned to a tax region. This assignment between country and tax region must be customized; to do so, choose the Customizing path for Tax regions for foreign customers/vendors. It is then possible to group countries together so that they use the same special tax region. For example, the tax region XX is assigned to country US in client 000 .

The tax region for foreign customer/vendors is defined in the tax region table. For this tax region, the 'Region' assignment to a geographical Brazilian region can be initial.