Last Updated on August 4, 2022 by admin

Create tax codes in SAP

The following tutorials guide you on how to create tax code step by step in SAP. We are creating an output tax VAT 5%. 

Create a new tax code by using the following methods:

  • SAP IMG Path: – SPRO > SAP Reference IMG (F5) > Financial Accounting > Financial Accounting Global Settings > Tax on sales/purchase > Calculation > Define tax codes for sales and purchases
  • Transaction Code: – FTXP

Path for Define tax codes for sales and purchases

Step 1: – A pop-up screen will be open and asks for a country key for which country you are configuring. Enter the country key and press enter to continue

country in

Step 2: – Enter the new tax code in the tax code field and enter

tax code

Step 3: – Update the following data.

  1. Update the description of the tax code
  2. Enter tax type i.e V is for Input Tax and A is for output tax

tax code type

Step 4: – Enter the tax rate in the tax. percent.rate field

OutPut VAT 5

Choose the save icon to save the data. A message will be displayed as ” Tax code was created”

taxcd