The taxes are contained in the calculation procedure, for each tax there exists a dedicated condition type. The information from the tax category should be used and assignment between the tax categories and condition types must be established. In the calculation procedure, there should be a subtotal level containing all prices, discounts and surcharges. All tax condition types should use this subtotal as the base. The determination of the tax percentage is done using the normal condition technique with condition tables and access sequences, please refer to the standard SD documentation therefore. Additionally some new fields are available in the field catalogue for the condition tables. These fields are copied from the master data of the customer and could be maintained on item level in the sales order:

• Distribution Type for GI: This field is initially copied from the master data of the payer.
• Fiscal Type: This field is initially copied from the master data of the payer.
• Activity code: This field is initially copied from the master data of the payer.
• Region for GI: This field is initially copied from the master data of the ship-to-party.

• Reason for zero VAT: If a certain operation is totally exempted then the reason must be entered in this field. The taxes can then be set to zero by using a condition value formula or totally suppressed by using a condition requirement formula. The reason must be reported.
• Good of use-Indicator: If a certain material is sold as a so-called ‘Good of use’ certain taxes must not be applied. The taxes can then be set to zero by using a condition value formula or totally suppressed by using a condition requirement formula. Therefore the requirement formulas 80 and 81 are delivered with the localization.
• Tax-relevant classification: This field should be used to apply Gross Income Perceptions. Therefore new entries can be created by choosing the Customizing path for maintaining tax-relevant classification.