Argentina Taxation: Perception IVA and perception IIBB

[Former Member]

Hi SAP experts

Currently, we have a scenario where in we are using an external tax system linked to the SAP system for determining the Argentina taxes. This external tax system is not meeting the complex requirements of the Argentina taxation structure. This external system is not capable to determine the input perception IVA (which is tax on VAT) and input perception IIIBB ( provincial taxes with base amount as the value of the goods) taxes.

One probable solution is to have multiple tax codes where in one tax code the main tax (VAT) is determined from this external system and the other taxes (Perception IVA) and (Perception IIBB) is determined from SAP itself. But, in doing so we will have a lot of tax codes to be created in SAP and the main purpose of using this external system to reduce the tax codes will not be met.

Also, there is a requirement to determine taxes at every province involved during the movement of the good. Example: if we are receiving the goods from the vendor and that goods are shipped from Province A to D & the movement of this good is via provinces B & C to D, then Perception IIBB has to be calculated on all these 3 provinces. But, looking into the input tax codes provided by the SAP Argentina localization package, I didn't find any tax code which had multiple calculation for perception IIBB. Please let me know if anyone has earlier worked on this requirement.

If this is a valid requirement, then can we use the condition types maintained in the tax code to limit which taxes needs to be calculated during the MM invoicing? For example, I have a tax code which has 5 tax lines activated (one for VAT + one for perception IVA + 3 for perception IIBB). So is there a way where in when I specify this tax code in the PO or the MM invoice, I can delete the unwanted IIBB tax condition types, so that only the required taxes are calculated.

Thanks in advance for your responses.

Regards

Nikhil

[Former Member]

Hi Experts and Moderators

Request you to please provide your guidance on this issue.

Thanks for your responses in advance.

Regards

Nikhil Kothari

[Former Member]

Hi Nikhil,

Please read my answers in topic below:

http://scn.sap.com/thread/3382507

Check if it is useful for you.

sincerely

Gian

[Former Member]

Hi Gian

Thank you for this information. But, the main issue is the number of tax codes that needs to be created for the purchase scenarios. It could be more than 120 tax codes and it is surely not a scalable solution. Correct me if I am wrong, but i don't think there is any standard sap solution based on condition techniques to determine taxes during vendor invoice for Argentina.

I have replied to that past as well. Please let me know in case you are aware of how to use condition technique in this case.

Thanks & Regards

Nikhil Kothari

[Former Member]

Hi Guys,

Waiting for your guidance.

Also, can anyone let me know the Standard SAP solution for posting the Perception IVA (VAT perception) and Perception IIBB (Gross Income tax perception) during the vendor invoice posting.

PS: The Perception IIBB can be more than one line item in the vendor invoice depending on the states from were the goods movement has happened.

Thanks & Regards

Nikhil Kothari

[Former Member]

For VAT (Purchases) use standard Tax Codes of C0, C1 etc these C* codes will work for MM and FI Transactions (FTXP)

IIBB Preceptions are deducted from Vendors thru Withholding Tax Codes at the time of payment only (Not yet the time of Invoice booking as per AR Taxes)

Ramesh

[Former Member]

Hi Ramesh

Thank you for your reply.

As per the requirement I received from the business, they need to post the line item entries for Perception IVA and Perception IIBB during the vendor invoice and the WHT deduction for these perceptions will happen during the payment entry.

We already have the WHT setup done and is working fine for us. Now, we need to automate the line items for the perceptions during the vendor invoice entry which the user is manually entering in the accounting document.

As per the below link under section Financial Accounting -> sales tax -> tax category -> Calculation Procedure and Tax codes in FI and MM, I see that we need to create tax codes for each combination of VAT + Perception IVA + Perception IIBB rate.

http://help.sap.com/saphelp_erp60_sp/helpdata/en/bf/149e36d10e057ee10000009b38f889/frameset.htm

But, in that case I didn't find any tax code with multiple perception IIBB scenario. If, the solution is tax code even for the multiple line items then in that case the number of tax codes will go on increasing as each time it would dependent on the goods movement.

Also, the Daily VAT report for Argentina (Program J_1AF205) has some configurations to be setup for populating the Perception IVA and Perception IIBB amounts in the right column.

In this case, Perception amount will appear in the right column if the Tax account key is correctly assign to a Tax class. Now, the tax account key is assigned the condition types and the condition types are assign to the tax procedure. In case of MM and FI, I can get these perceptions automatically only through Tax code will in SD section as SAP AR localization this is handle correctly through the SD pricing procedure.

So, looking at the config for the report, I am looking to populate the Perception IVA and Perception IIBB line item in the vendore invoice through tax codes.

Looking forward for your inputs and suggestions

Thanks & Regards

Nikhil Kothari

[Former Member]

Hi .... You may check the below report:

S_AL0_96000640 - Significant Transactions Data Synchronization C.I.T.I. RG 781/2000

We can make some changes to this report (J_1AF217) to get additional fields, Here you may add Perceptions and IIBB columns

Even for Vendor With-holdings also we have developed a report

I think at present IVA, Perception and IIBB of Vendors is not taken care by a single tax code in SAP. We may have raise a query to SAP

If you found any alternatives, please update in this forum

Also let me know how you are handling exchange Debit / Credit notes for Forex Rate differences ... zrameshs at gmail

[Former Member]

Hi Ramesh

Thanks for your reponses.. I will get back to you on your queries as soon as I am in front of my system and logged into SAP.

Also, I think the Perception IVA and perception IIBB (one or more than one ) can be handled through tax codes along with the VAT. But, the main problem with this design is that the list of tax codes will increase with per unique combination of VAT + Perception IVA + Perception IIBB (one or more than one IIBB). And by using tax code, i can do use the std config for the DGI reporting and thus the report J_1AF205 will show the correct reporting.

But, in case the route for goods movement is fixed for a particular vendor then we can use the Tax category option in the vendor master data to limit options that the user can see during the vendor invoice posting.

This is what I have analysed by looking into the system.

Please let me know, your views on this.

Thanks & Regards

Nikhil Kothari