What is tax type in SAP CRM-MD - Master Data?

SAP Term: tax type

• Component: CRM-MD

• Component Name: Master Data

• Description: A specific kind of tax such as sales tax, federal sales tax that determines which tax is used for country-specific tax determination.

Smart SAP Assistant

• Key Concepts: 
  Tax type is a field in the CRM-MD Master Data component of SAP that is used to classify taxes according to their purpose. It is used to determine the tax rate for a particular transaction and to ensure that the correct taxes are applied. 
  
  How to use it: 
  When creating a new transaction in SAP, the tax type field must be filled out. This field will determine the tax rate that will be applied to the transaction. The tax type can be selected from a list of available options, such as sales tax, value-added tax (VAT), or other types of taxes. 
  
  Tips & Tricks: 
  It is important to select the correct tax type for each transaction in order to ensure that the correct taxes are applied. If the wrong tax type is selected, it could result in incorrect taxes being applied or an incorrect amount of taxes being paid. 
  
  Related Information: 
  The tax type field is related to other fields in the CRM-MD Master Data component, such as the country code and currency code fields. These fields must also be filled out correctly in order for the correct taxes to be applied.