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%.
Tax amount = invoice gross amount * (tax rate/100 + tax rate)
150 = 1150 * ( 15 / 100 + 15)
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, seeThe Calculation Procedure.
See also:Tax on Sales/Purchases: Input and Output Tax Non-Deductible Input Tax Deferred Tax: Italy
Sales TaxUse Tax Tax Calculation With or Without Jurisdiction Code? Entering Taxes with Jurisdiction Code Acquisition Tax Investment Tax Sales Equalization Tax