How To Fix F7320 - Do not mark the VAT refund code as EU relevant

F7320 - Overview

• Message type: E = Error

• Message class: F7 - Program Error Messages

• Message number: 320

• Message text: Do not mark the VAT refund code as EU relevant

What causes this issue?

This tax code is flagged as input VAT refund-relevant. 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.

F7320 - Details

• The SAP error message F7320, which states "Do not mark the VAT refund code as EU relevant," typically arises in the context of VAT (Value Added Tax) processing within the SAP system. This error indicates that there is a configuration issue related to the VAT refund code being used in a transaction.
  
  Cause:
  
  Incorrect Configuration: The VAT refund code has been marked as EU relevant, but it should not be. This can happen if the configuration settings in the SAP system are not aligned with the business requirements or legal regulations.
  Transaction Type: The transaction being processed may not be eligible for EU VAT treatment, leading to this error when an EU relevant code is incorrectly applied.
  Master Data Issues: The master data for the vendor or customer may not be set up correctly, leading to the application of an incorrect VAT refund code.
  
  
  Solution:
  
  
  Review VAT Configuration:
  
  Go to the configuration settings for VAT codes in