How Taxes Are Recorded 
Purpose
In countries where taxes on sales/purchases are levied locally, you have to post your taxes below company code level in order to generate your tax returns locally. In order to do this, you assign your invoices to a business place . This means that the business place is the level at which vendor invoices are entered and customer invoices are issued.
Prerequisites
You have maintained your business place in Customizing and assigned it to the relevant organizational units.
Note
We recommend that you maintain your user profile and default your business place to parameter ID_BUPLA .
Process Flow
For the company codes of countries that are required to report tax locally, the system provides a field to enter the business place in all taxable transactions. This enables you to assign all tax-related documents to the responsible business place.
When you enter your invoices in the system, you have to:
Follow the standard procedure for the component with which you are working.
Enter the business place concerned if it is not already defaulted through Customizing or your user profile.
Result
The system assigns all tax-related documents to the responsible business place. When you want to generate your tax returns, the system is able to call all tax postings for any one business place in your company code and compile them as required into the reports to be submitted to the authorities.