What is use tax in SAP FI-AP - Accounts Payable?

SAP Term: use tax

• Component: FI-AP

• Component Name: Accounts Payable

• Description: A tax imposed on the use of personal property and especially property purchased in another state. Specifically, a one-time tax imposed on the exercise or enjoyment of any right or power over tangible personal property that is incident to the ownership, possession, custody, or leasing of it.

Smart SAP Assistant

• Key Concepts: 
  Use tax is a type of indirect tax that is imposed on the use of goods or services in a jurisdiction where the goods or services were not taxed at the point of sale. It is similar to a sales tax, but it is imposed on the consumer instead of the seller. In SAP FI-AP Accounts Payable, use tax is used to track and report taxes that are due on purchases made from vendors. 
  
  How to Use It: 
  In SAP FI-AP Accounts Payable, use tax can be set up in the system by creating a new tax code for use tax and assigning it to the appropriate vendor. The system will then automatically calculate the amount of use tax due on each purchase from that vendor. The amount of use tax due can then be reported in the system and paid to the appropriate taxing authority. 
  
  Tips & Tricks: 
  When setting up use tax in SAP FI-AP Accounts Payable, it is important to ensure that the correct rate of use tax is applied to each purchase. This can be done by setting up different tax codes for different vendors or by setting up different rates for different types of purchases. 
  
  Related Information: 
  For more information about setting up and using use tax in SAP FI-AP Accounts Payable, please refer to the SAP Help documentation. Additionally, there are many online resources available that provide detailed information about use taxes and how they are used in SAP systems.