Understanding the Setup for GUI/VAT Tax Type Mapping
You specify in the customer master record for each customer the tax rate area and tax explanation code that apply to the customer. The combination of the tax rate area and tax explanation code determines if the customer is subject to VAT. You must also specify at the transaction level whether a specific transaction for a customer is subject to VAT. You specify whether a transaction is taxable by assigning a tax type to the transaction.
Tax types for Taiwan are:
Taxable
Zero-rate
Exempted
Void
You use the GUI/VAT Tax Type Mapping program (P75T008) to associate a tax type to a tax rate area and tax explanation code combination. The system stores the associations in the GUI/VAT Tax Type Mapping table (F75T008). When you enter transactions for a customer, you enter the tax rate area and tax explanation code for the transaction in the standard software for sales orders, invoices, vouchers, and journal entries. The standard software calls the GUI/VAT Transaction program (P75T004), which looks up the associations in the F75T008 table and uses the combination of the tax rate area and tax explanation code to determine a default value for the tax type of the transaction. The system calculates the VAT by using the tax explanation code and tax rate area that you associated with the tax type.
The system writes the tax type to the GUI/VAT Transaction Detail table (F75T004) in the record for the transaction. The system uses the records in the F75T004 table when you run the programs to report taxable, nontaxable, and tax-exempt transactions.
Each GUI can include transactions for only one of the tax types. For example, if a sales order transaction has some items that are taxable and some that are taxed at a zero-tax rate, you must generate two GUIs.