Setup Requirements for VAT

This table lists the VAT setup requirements for India:

Setup Requirement	Comments	Cross-Reference
Enter the tax registration number of customers and suppliers.	You use the Tax Registration Details program (P75I210) to enter the tax registration details for an address book record, such as a business unit, customer, or supplier.	See Setting Up Tax Registration Details.
Set up cross references for states and business units.	You use the State/ Business Unit Cross Reference program (P75I2139) to map business units to a state.	See Mapping Business Units to States.
Set up the system for opening stock adjustment.	You use the Opening Stock Adjustment program (P75I2136) to enter the VAT credit carried forward from the previous financial year for capital goods, personal consumption goods, and transferred stock.	See Entering Opening Stock Adjustment Amounts for VAT Credit.
Assign VAT category codes to item numbers	You use a VAT category code to indicate whether an item is eligible for VAT. Assign the category code after you assign the item numbers to the business units in the Item category Relationship program (P75I2140).
Set up General Ledger accounts for VAT and CST Transactions	You use the VAT / CST Account master Setup program (P75I2141) to set up the general ledger accounts that the system uses for payable and receivable transactions for VAT and CST.	See Setting Up General Ledger Accounts for VAT and CST Transactions
Set up retention percentage and deferred periods for state-level constants	Use the Retention Percentage program (P75I220) to set the state level constants. Enter the deferred period for the capital goods and the retention percentage for the stock transfers in the Retention Percentage program.	See Setting Up Retention Percentage and Deferred Periods for State-Level Constants