How To Fix F7317 - Tax code &1 is flagged as a European Community indicator

F7317 - Overview

• Message type: E = Error

• Message class: F7 - Program Error Messages

• Message number: 317

• Message text: Tax code &1 is flagged as a European Community indicator

What causes this issue?

Tax codes that are relevant for input VAT refunds must not be marked as
an EC (European Community) indicator because they should not be reported
in the EC sales list.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message F7317 - Tax code &1 is flagged as a European Community indicator ?

  The SAP error message F7317 indicates that a specific tax code is flagged as a European Community (EC) indicator, which typically means that the tax code is intended for transactions that fall under the regulations of the European Union (EU) VAT system. This error often arises in the context of financial transactions, particularly when dealing with VAT reporting and compliance.
  
  Cause:
  
  Tax Code Configuration: The tax code in question is configured in the system to indicate that it is used for transactions that are subject to EC VAT rules.
  Transaction Type: The transaction being processed may not be compatible with the EC tax code, such as a domestic transaction that should not use an EC indicator.
  Incorrect Tax Code Usage: The user may have selected an inappropriate tax code for the transaction type, leading to a mismatch.
  
  
  Solution:
  
  Review Tax Code Configuration: Check the configuration of the tax code in the SAP system. Ensure that it