Substituição Tributária Rate Determination 

Rate Determination in MM

Substituição Tributária rates are derived from the following parameters and tables:

The FI tax code carries the information to determine whether Substituição Tributária must be calculated.

R/3 uses the tax jurisdiction of the vendor to determine the ship-from tax region which is required to read the Substituição Tributária table.

R/3 uses the tax jurisdiction of the receiving plant to determine the ship-to tax region which is required to read the Substituição Tributária table.

R/3 uses the material to be able to define calculation rules on the most detailed level of information available in the business process.

Rate Determination in SD

Substituição Tributária rates are derived from the following parameters and tables:

The SD pricing procedure uses the indicator Calculate Substituição Tributária of the SD tax code to determine whether Substituição Tributária must be calculated. SD tax codes are specified in the sales order on line level.

R/3 uses the tax jurisdiction of the sending plant to determine the ship-from tax region which is required to read the Substituição Tributária table.

R/3 uses the tax jurisdiction of the customer to determine the ship-to tax region which is required to read the Substituição Tributária table.

If the tax classification in the customer master record is set to ‘2’, the calculation of Substituição Tributária can also support the special processing logic when selling to customers located in the Zona Franca de Manaus.

R/3 uses the material to be able to define calculation rules on the most detailed level of information available in the business process.