Tax Rates 
You can define various tax rates for IPI, ICMS, SubTrib and ISS, which the system then accesses during tax calculation in the sequence described below. The standard values correspond to those published by the government, and they are based on a certain factor or combination of factors:
Standard Tax Values
Tax Rate |
Factor(s) |
IPI |
NCM code |
ICMS |
Ship-from tax
region |
SubTrib |
Ship-from tax
region |
ISS |
ISS is based primarily on the tax jurisdiction code, but many other factors can influence its calculation (see ISS). ISS is handled differently than the other tax rates: there is one tax rate table, in which you enter all standard rates as well as any exceptions. If ISS is to be calculated, the system always accesses this rate table. |
In addition, you can define exceptions for each tax rate. Dynamic exceptions allow you to define special rates based on key fields stored in master records or taken from transaction data, such as the tax code. By means of tax groups, which you then assign to the dynamic exception tables, you can define up to three key fields that the system uses to determine the appropriate tax rate in the case of dynamic exceptions.
You can also define material-dependent exceptions, but we recommend that you define any rate exceptions using dynamic exceptions; the material is one of the key fields you can define for your tax group.
Lastly, you can define default values for IPI, ICMS, and ISS (not SubTrib), which the system uses if it does not determine a valid rate in the other tax rate tables.
Priority of Values
During tax calculation, the system searches for the correct tax rate in the tax rate tables. It looks in the following tables for each tax type, in the specified sequence, and takes the first rate it finds:
...
1. Material-dependent exceptions
2. Dynamic exceptions
3. Standard values
4. Default values
See also:
Taxes: Customizing, for IMG paths for defining tax rates and tax groups for dynamic exceptions, under Tax Calculation