Tax Code (SAP Library - South Korea)

Tax Code

Definition

Use

Country Version South Korea comes with the following tax codes:

Input Tax

Tax	Tax code	Tax rate (%)
Purchase made against invoice	V0	0
Purchase made against cash register receipt	V1
Purchase made against credit card receipt	V2
Purchase made against tax invoice	V8
Entertainment expenses	X0	0 (nondeductible)
General purchase made against tax invoice	VA	10
Purchase of fixed assets made against tax invoice	V3
General purchase made against commercial invoice	V5
General purchase made against credit card receipt	V6
General purchase made against cash register receipt	V7
Allocation of common input tax made against tax invoice	ZX
Allocation of common input tax made against cash register receipt	ZY
Allocation of common input tax made against credit card receipt	ZZ
General nondeductible transaction	V4	10 (nondeductible)
Acquisition and maintenance expense for small automobiles against a tax invoice	X1
Nonbusiness expenses against a tax invoice	X2
Expenses incurred by non-VAT company against a tax invoice	X3
Entertainment expenses against a tax invoice	X4
Acquisition and maintenance expense for small automobiles against a cash register receipt	Y1
Nonbusiness expenses against a cash register receipt	Y2
Expenses incurred by non-VAT company against a cash register receipt	Y3
Entertainment expenses against a cash register receipt	Y4
Acquisition and maintenance expense for small automobiles against a credit card receipt	Z1
Nonbusiness expenses against a credit card receipt	Z2
Expenses incurred by non-VAT company against a credit card receipt	Z3
Entertainment expenses against a credit card receipt	Z4

Output Tax

Tax	Tax code	Tax rate (%)
Sales of tax-free goods or services against a tax invoice	A0	0
Sales of tax-free goods or services against a cash register receipt	A1
Sales of tax-free goods or services against a credit card receipt	A2
Local exports against a tax invoice	A8
Direct exports	A9
General sales against credit card receipt	A3	10
General sales against cash register receipt	A4
General sales against receipt	A5
General sales against commercial invoice	A6
General sales to traders against tax invoices	AA
Retirement of fixed assets	AB
Supplies to direct sales shops	AC
Payment by proxy	B4
Imputed rental charges	B5

Internal Transactions Such as Entertainment Expenses and Donations

Tax	Tax code
This code is applied when a company makes a self consumption for business purposes and posts the transaction to the G/L account entertainment expenses.	B1
This code is applied when a company makes a self consumption for personal purposes and posts the transaction to the G/L account entertainment expenses.	B2
This code is applied when a company makes a donation and posts it to the G/L account donations.	B3

Master Data

All expense accounts that you want to post taxable transactions to must have an asterisk (*) in the Tax Category field in the company code part of the G/L account master record.

Day-to-Day Activities

When you post VAT items, you can use different tax codes for different types of receipts. You can use different tax codes for tax invoices, cash register receipts, or credit card receipts (where an employee has entered expenses in the system to get a refund).