Standard SAP determines and automates VAT codes based upon the condition technique. The key attributes for the VAT determination and calculation for outbound transactions are Departure country, Destination country, Customer Tax Classification and Material tax classification. It is also important to update the valid VAT registration number for EU customers to derive correct VAT determination for EU countries. The quality of master data and picking the correct access sequence by SAP are the key drivers which can ensure the accurate VAT calculation.
Source Roberta Grottini
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