Configuration of Tax Codes (SAP Library

Configuration of Tax Codes

In the pre-configuration of the Korean-specific Customizing, the following tax codes have been created:

Input VAT of 0%

V0	purchase of non-taxable goods, a general bill was received
V1	purchase of non-taxable goods, a cash register receipt was received
V2	purchase of non-taxable goods, a credit card receipt was received
V8	purchase of non-taxable goods, a tax invoice was received

Non-deductible input VAT of 0%

X0	Entertainment expenses

Input VAT of 10%

VA	general taxable transaction (including direct import),a tax invoice was received
V3	purchase of fixed assets, a tax invoice was received
V5	general taxable transaction, a general bill was received
V6	general taxable transaction, a credit card receipt was received
V7	general taxable transaction, a cash register receipt was received
ZX	allocation of common input tax, a tax invoice was received
ZY	allocation of common input tax, a cash register receipt was received
ZZ	allocation of common input tax, a credit card receipt was received

Non-deductible input VAT of 10%

V4	general non-deductible transaction
X1	Acquisition and maintenance expenses for small-sized automobiles, a tax invoice was received
X2	Business-unrelated expenses, a tax invoice was received
X3	Free business expenses, a tax invoice was received
X4	Entertainment expenses, a tax invoice was received
Y1	Acquisition and maintenance expenses for small-sized automobiles, a cash register receipt was received
Y2	Business-unrelated expenses, a cash register receipt was received
Y3	Free business expenses, a cash register receipt was received
Y4	Entertainment expenses, a cash register receipt was received
Z1	Acquisition and maintenance expenses for small-sized automobiles, a credit card receipt was received
Z2	Business-unrelated expenses, a credit card receipt was received
Z3	Free business expenses, a credit card receipt was received
Z4	Entertainment expenses, a credit card receipt was received

Output VAT of 0%

A0	Sale of non-taxable goods or services, a tax invoice is issued, VAT output tax is 0%
A1	Sale of non-taxable goods or services, a cash register receipt is issued, VAT output tax is 0%
A2	Sale of non-taxable goods or services, a credit card receipt is issued, VAT output tax is 0%
A8	general 0% taxable transaction for local export, a tax invoice is issued.
A9	general 0% taxable transaction for direct export

Output VAT of 10%

A3	general taxable transaction, credit card receipt is issued
A4	general taxable transaction, cash register receipt is issued
A5	general taxable transaction, a receipt is issued
A6	general taxable transaction, a general bill is issued
A7	general taxable transaction for personal ID transactions, customers can be identified by their personal ID number, but have no VAT registration number
AA	general taxable transaction with a trader, a tax invoice is issued
B4	Payment by proxy
B5	Imputed rental charge

Internal consumption as entertainment expense and donations

B1	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.
B2	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.
B3	This code is applied when a company makes a donation and posts it to the G/L account donations.

Customizing tax codes:

In Customizing choose Financial Accounting ® Financial Accounting Global Settings ® Tax on Sales/Purchases ® Calculation ® Define Tax Codes for Sales and Purchases.

All expense accounts of your chart account, where taxable transactions are posted, should be marked with ‘ * ’ in the field tax category in the company code dependent part of the G/L account master record.

The tax codes are not only important for calculating the correct tax amount, but also for selecting the correct transactions when creating the tax reports. For example, when running the output VAT report, you have to explain the report in the selection screen, the tax code to select, and indicate which of the selected tax codes are VAT transactions and which are ID transactions. In this case, enter A7 as ID transaction. For all of the transactions posted with A7, the report then lists the social ID of the Customer and not the VAT registration number.