What is VAT-free operations in SAP FI-GL - General Ledger Accounting?

SAP Term: VAT-free operations

• Component: FI-GL

• Component Name: General Ledger Accounting

• Description: The production of goods or the realization of services that are tax-free with regard to VAT according to the Russian tax code. This can include, for example, the production of medical supplies or transportation services provided by a public transport company.

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• Key Concepts: 
  VAT-free operations are transactions that are exempt from Value Added Tax (VAT) in accordance with the applicable tax regulations. This exemption applies to certain types of transactions, such as those related to exports, international trade, and certain types of services. In SAP, VAT-free operations are managed in the FI-GL General Ledger Accounting component. 
  
  How to use it: 
  In order to use VAT-free operations in SAP, you must first configure the system to recognize the transactions as exempt from VAT. This is done by setting up a special tax code for VAT-free operations in the system. Once this is done, you can assign this tax code to any transaction that is eligible for VAT exemption. 
  
  Tips & Tricks: 
  When configuring the system for VAT-free operations, it is important to ensure that all relevant tax codes are set up correctly. This will ensure that all transactions are correctly identified as exempt from VAT and that no errors occur when processing them. 
  
  Related Information: 
  For more information on how to configure and use VAT-free operations in SAP, please refer to the official SAP documentation on the topic. Additionally, there are many online resources available that provide detailed instructions on how to set up and use VAT-free operations in SAP.