Understanding the Tax Rules for VAT Taxes

Use the CBS and IBS Tax Rule program (P76BCI01) to assign purpose code, codes for first party business, third party business, and item type, and also the participant profile as specified by the government, to combinations of tributary class code and CST code that you set up using the CST and Tributary Class for CBS and IBS program for the CBS and IBS taxes. Similarly, use the IS Tax Rule program (P76BIS01) to assign these codes to the combinations of tributary class code and CST code for the IS taxes that you set up using the CST and Tributary Class for IS program. The values that you specify are required for classifying the transaction for a streamlined processing of VAT taxes.