Understanding Tax Definition by Service Category Code

You use the Tax Definition by Service Category program (P75I052) to set up the percentage of taxes to be paid by service provider and service receiver in a reverse charge by service category code and tax rates. You can use this program to add, delete, or modify a tax setup.

You must enter only those category codes that do not exist in the F75I051 table. If you enter a service category code that you created for point of taxation and that exists in the F75I051 table, the system displays a warning message. When you enter values in the Tax Definition by Service Category program , the system ensures that the sum of values in the Percentage Service Receiver and Percentage Service Provider fields is 100. Therefore, when you enter a value in the Percentage Service Provider field, the system automatically assigns the balance value in the Percentage Service Receiver field.

Similarly, when you enter a value in the Percentage Service Receiver field, the system automatically assigns the balance value in the Percentage Service Provider field. For example, if you enter a value of 79 in the Percentage Service Receiver field, the system will automatically assign a value of 21 (100-79) in the Percentage Service Provider field.