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Object documentation Sales and Use Tax Locate the document in its SAP Library structure

Definition

In the United States, tax on sales and purchases is known as sales and use tax. Sales and use tax is levied on the sale of tangible personal property and is imposed by tax authorities on transactions.

Most states in the United States impose a sales tax on sales of goods. As a general rule, the consumer bears the tax and the vendor merely acts as a collector for the jurisdiction. Most jurisdictions that impose sales tax also impose a complimentary use tax on the use or consumption of goods originating from another state. Transactions are generally subject to sales or use tax, but not both, and payment is generally self-imposed by the buyer or seller.

Use

You can configure the SAP system to automate calculation and posting of sales and use tax. When posting a document, the system automatically determines the sales and use tax amounts and assigns the amounts to the appropriate accounts or retains the information for reporting.

SAP offers various methods to compute sales and use tax.

See also:

Sales Tax

Use Tax

Self-Assessment Tax

Calculation Procedure

Jurisdiction Code

Tax Determination

 

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