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