Tax Code Enhancements (SAP Library

Tax Code Enhancements

The calculation of taxes in MM and FI is driven by tax codes. To fulfill Brazilian tax requirements, the tax code enhancements must be maintained.

You can maintain the following fields for each tax code by choosing the Customizing paths for taxes:

Usage (Industrialization, Consumption): The usage indicator determines how the amounts are calculated in purchasing.

Indicator for Service tax calculation: The system calculates a service tax such as ISS or INSS only if this indicator is set. Note that the definition of the tax code must have the ISS or INSS line active.

Tax law ICMS: Tax laws specify legal Nota Fiscal texts and the ICMS tax situation used for legal reporting. Both are transferred to the Nota Fiscal database.

Tax law IPI: Tax laws specify legal Nota Fiscal texts and the IPI tax situation. Both are transferred to the Nota Fiscal database.

Indicator ICMS exempt: If this indicator is set, the ICMS base value is stored as Excluded/Exempt base instead of Other base in the Nota Fiscal database, if the respective tax code does not trigger an ICMS calculation. The indicator is ignored if an ICMS calculation takes place.

Indicator IPI exempt: If this indicator is set, the IPI base value is stored as Excluded/Exempt base instead of Other base in the Nota Fiscal database if the respective tax code does not trigger an IPI calculation. The indicator is ignored if an IPI calculation takes place.