What is destination principle in SAP AP-TTE - CRM Transaction Tax Engine?

SAP Term: destination principle

• Component: AP-TTE

• Component Name: CRM Transaction Tax Engine

• Description: A value-added tax concept under which tax is imposed on the place in which goods or services are consumed.

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• Key Concepts: 
  The destination principle is a concept used in the SAP AP-TTE CRM Transaction Tax Engine. It is based on the idea that taxes should be applied to goods and services based on the location of the customer, rather than the location of the seller. This means that taxes are calculated based on the destination of the goods or services, rather than the origin. 
  
  How to use it: 
  The destination principle is used in SAP AP-TTE CRM Transaction Tax Engine to calculate taxes for goods and services. The system will take into account the location of the customer when calculating taxes, rather than the location of the seller. This ensures that taxes are applied correctly and accurately. 
  
  Tips & Tricks: 
  When using the destination principle in SAP AP-TTE CRM Transaction Tax Engine, it is important to ensure that all customer information is up-to-date and accurate. This will ensure that taxes are calculated correctly and accurately. 
  
  Related Information: 
  The destination principle is part of a larger concept known as “taxation at source”, which is a system of taxation where taxes are collected from the source of income or goods. This system is used in many countries around the world, including the United States, Canada, and Australia.