How To Fix 5D793 - Tax class & not allowed for those liable to reduced tax

5D793 - Overview

• Message type: E = Error

• Message class: 5D - Error Messages for German Infotype Module Pools

• Message number: 793

• Message text: Tax class & not allowed for those liable to reduced tax

What causes this issue?

According to ?39d(1) Income Tax Laws, only tax classes 1 and 6 are
valied for those liable to restricted tax.
An exception are the cross-border Dutch employees, who are coded with a
special rule.
According to this rule (A.125(9) Income Tax Law 90), the tax classes 1,
3, 4 and 6 are valid for the cross-border Dutch employees.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message 5D793 - Tax class & not allowed for those liable to reduced tax ?

  The SAP error message "5D793 Tax class & not allowed for those liable to reduced tax" typically occurs when there is an issue with the tax classification of a material or service in relation to the tax settings in the system. This error is often encountered during the processing of invoices, sales orders, or other financial transactions where tax calculations are involved.
  
  Cause:
  
  Incorrect Tax Classification: The tax class assigned to the material or service does not align with the tax regulations for entities that are eligible for reduced tax rates.
  
  Configuration Issues: The tax configuration in the SAP system may not be set up correctly, leading to conflicts between the tax class and the reduced tax status.
  Master Data Issues: The master data for the customer or vendor may not be correctly maintained, particularly regarding tax classifications and exemptions.
  Legal Changes: Changes in tax laws or regulations that affect the classification of goods and