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How does per diem is dependent on tax jurisdiction for germany

siddharthrajora
Product and Topic Expert
Product and Topic Expert
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is tax jurisdiction needs to default for per diem for germany? How does it matter for germany?

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Dear Sid

We can avail the Travel Expenses either with Tax or without Tax. To make this option applicable for all the Expenses we need to change in Global settings in V_706D_B

here we define the country & Input tax field so that it will be available for all the expenses. Once this is done we need to define the permissibility  in V_T706B1

As said earlier, we can set the type of Tax code for the Per Diem Expenses in the table V_T706B1_A after we make them active in Global settings.

for getting the Tax jurisdiction codes we need to maintain them separately under Financial Accounting -> Financial Accounting Global settings -> Tax on Sales/Purchases -> Basic Settings -> Define Tax Jurisdictions.

you specify the tax jurisdiction code per tax calculation procedure.The tax jurisdiction code consists of up to four parts depending on the tax jurisdiction code structure for the relevant calculation procedure: the state code, the county code, the city code, and a local code component. The system uses these component parts to determine the tax rate for each tax authority.

we need to maintain Tax Jurisdiction codes & Tax codes with proper G/L's to get the proper data at the time of Calculating & Posting to FI.

Hope this Info will be useful

Cheers

Pradyp

siddharthrajora
Product and Topic Expert
Product and Topic Expert
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Thanks Everyone, I found lot of notes and information on this. with note 1976992 FI-TV-COS                1962438                2              50          Legal change for Germany as of JAN/01/2014: Meals per diem for less than eight

Answers (1)

Answers (1)

Former Member
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Hi, what do you mean? Could you please explain more in detail?

siddharthrajora
Product and Topic Expert
Product and Topic Expert
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how per diem gets calculated per country regulations for Germany do we need tax jurisdiction. I see in table we have tax codes is that sufficient? View:  V_T706B1_A Create Travel Expense Types for Per Diems/Flat Rates defaults tax jurisdiction http://wiki.scn.sap.com/wiki/pages/viewpage.action?pageId=243630756

Former Member
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country regulation Germany is MOLGA 01.

Tax jurisdiction is for MOLGA 10 (United States)

Therefore I do not understand your question with German regulation. German regulation does not know the concept of tax jurisdiction....

So you like to customize travel for country US or for Germany?

siddharthrajora
Product and Topic Expert
Product and Topic Expert
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its for Germany, sorry for confusing. I wanted to confirm so how does tax calculation happens is it using above table?

Former Member
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In Germany you have only VAT.

7% for some things e.g. like public transport not more than 50 kilometers of distance (TAXI)

Or Hotel nights (HOTEL)

19% normal VAT rate for all goods and services (long distance trains TRAIN)

This is specified on expense type level and will be automatically used when the user use one of these expense types.

Posting will be done accordingly.

Germany has no such a concept of jurisdiction.

Best regards,

Sigi