Hi,
In MM module, ZA01 custom amount is one of component for material stock amount. So, Material Stock amount in company can consist custom amount also.
It brings another issue. For example, Import custom tax is 20%. Purchasing VAT tax is 17%.
ZA01 input 17%. Purchasing info record input 17% tax code.
When MIRO, it calculates tax amount using RMB100 material price only as base amount. Then tax amount is 100*17% = RMB17.
But the actual tax amount is 100*120%*17% - 100 = RMB40.1
For your case, the material price already include import custom tax amount, so the tax amount is correct?? After LIV, do adjustment to settle tax account and vendor AP account.
So, if use ZA01 to handle tax amount, would be one of effective way to use Tax rate 40.1% in purchasing info record and then do LIV? Or I am finding how to include both material price and ZA01 as base amount to calculate Tax amount ...
Appreciate for your help!
Mag
---------------Original Message---------------
From: Mag Sai
Sent: Thursday, July 29, 2010 12:00 PM
Subject: China - Custom Tax, VAT Tax Handling
> China - Custom Tax, VAT Tax Handling
>
> Hi SAP friends
>
> I have the problem of Import custom tax and VAT tax for purchasing.
>
> It is Domestic Sales scenario. Need to purchase material from oversea vendor.
> Oversea vendor sell material to China company RMB 100 per PC.
> Mainland company needs to pay custom for custom tax 20% and the custom tax is non-deductible. Custom tax is 100*(20%) = RMB 20.
> Then, Mainland company needs to pay China government VAT tax(17%),
> VAT tax is 100*(1+custom tax)*(VAT tax)-100 = 100*(1.2)*(1.17) - 100 = 40.4
> So, VAT tax amount = Material price * custom tax * VAT tax
>
>
> In PO, I use ZOA1 custom condition type to input Cutom tax amount for Custom tax and input Tax code for VAT tax.
> When good receipt, RMB 120 post to Material stock account. RMB 100 post to GR/IR. RMB20 post to custom account
> It still be fine.
>
> When do LIV, RMB 100 clear GR/IR. RMB 17 post to VAT tax account because it use RMB 100 as base amount to calculate VAT tax. RMB117 post to AP vendor account.
>
> Actually, mainland company only pays RMB100 to oversea vendor and the Tax amount should be include Custom amount. Corrrect VAT tax amount is 100*(1.2)*(1.17) - 100 = 40.4 (use RMB120 as base amount to calculate VAT tax), but not only RMB 17 . But, in LIV payment to vendor now is RMB120. It is not fulfill the requirement of mainland company.
>
> Do anyone have experience about China Import purchasing material. And, would share how to settle the payment of vendor and how to make use (Material price + Custom tax amount) as base amount to calculate VAT tax amount?
>
> Thanks a lot for your help!
>
> Mag
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