Tax on Sales/Purchases (SAP Library

Tax on Sales/Purchases

Definition

See Tax on Sales/Purchases, Sales Taxes, and Additional Taxes.

Use

In Brazil, there are a number of taxes on sales and purchases, of which Country Version Brazil covers the following:

Industrial products tax (IPI)
State value-added tax (ICMS), as well as special forms of ICMS:

ICMS complement
ICMS on freight
ICMS tax substitution (SubTrib) and SubTrib on freight

Municipal tax on services (ISS)
Social contribution tax on services (INSS)

When you create a company code using the template for Brazil and complete the required Customizing steps, the system automatically makes all the settings required for these taxes.

The following sections explain the taxes in detail, starting with an explanation of the various rates per tax, and how the system calculates them.