Specifications for the Tax Type 

When you define your tax codes, the system defaults certain tax types that have been defined in the system for specific countries. Input tax, output tax, and non-deductible input tax are examples of tax types used in Germany.

The system determines which tax types are to be displayed by means of the country key. A calculation procedure is specified for each country key, and this procedure contains the country-specific specifications for calculating and posting the different tax types.

When you define the calculation procedure, you must answer the following questions concerning each tax type:

The tax amount is 15%.

Percentage included

Tax amount = invoice gross amount * (tax rate/100 + tax rate)

150 = 1150 * ( 15 / 100 + 15)

Percentage separate

Tax amount = invoice net gross * tax rate/100

150 = 1000 * 15 / 100

The type of tax calculation and posting depends on the answers to these questions and the combination of those answers.

The following topics introduce individual tax types and explain the necessary specifications for calculating and posting tax. For more information on the calculation procedure, see The Calculation Procedure.

See also:

Tax on Sales/Purchases: Input and Output Tax

Non-Deductible Input Tax

Deferred Tax: Italy

Sales Tax

Use Tax

Tax Calculation With or Without Jurisdiction Code?

Entering Taxes with Jurisdiction Code

Acquisition Tax

Investment Tax

Sales Equalization Tax