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Object documentationTaxes

 

Technical name: CRMM_PR_TAX

Set type for assigning the data required for tax determination to a product.

 

By assigning sales taxes to a product, you determine how a product is taxed. This entails specifying the following:

  • Country and region

    Specifies in what country and region the tax applies.

  • Tax type

    Any form of sales tax or withholding tax, such as VAT or excise duty.

  • Tax group

    This classifies the product according to the rate of tax charged on it.

    Example Example

    The main form of tax on sales in Germany is VAT (value-added tax). Most products are subject to the full rate of VAT, certain products, such as basic foodstuffs, are taxed at a reduced rate, and others are not taxed at all.

    There are therefore three product tax groups: one for products taxed at the full rate; one for reduced-rate products; and one products that are not taxed.

    End of the example.

  • Tax tariff code

    For certain countries (for example, Brazil, Poland, and India), it is not sufficient to specify a tax group. To uniquely identify a product for tax purposes in these countries, a tax tariff code is used.

Example 1

A product is to be taxed at full rate in Germany:

Product: 4711

Country: Germany

Product tax group: Full

Example 2

A product is to be taxed at half rate in Brazil:

Product: 4712

Country: Brazil

Product tax group: Half

Tax tariff code: NBM1

Customizing

You make the settings required for product taxes in Customizing for Customer Relationship Management, by choosing Start of the navigation path Basic Functions Next navigation step Taxes Next navigation step Basic Settings Next navigation step Tax Types and Tax Groups End of the navigation path.