What is acquisition tax in SAP FI - Financial Accounting?

SAP Term: acquisition tax

• Component: FI

• Component Name: Financial Accounting

• Description: An acquisition tax is due on the cross-border movement of goods and services within the European Union. Acquisition tax must be applied by the receiving party at the local rate but can also be posted as input tax. Any company that is entitled to reclaim input tax does not ultimately pay acquisition tax. When the incoming invoice is posted, the tax amount is posted both as a payable and as a receivable on the tax account. Acquisition tax is calculated on the base amount of the invoice when it is issued at the latest, on the 15th day of the month following the month when the goods or services were acquired In Germany, at the end of this month. The tax rates vary between Member States, but correspond to the standard domestic rates in each country.

Smart SAP Assistant

• Key Concepts: 
  Acquisition tax is a type of tax that is levied on the acquisition of goods or services. It is a form of indirect taxation, meaning that it is paid by the purchaser of the goods or services, rather than the seller. In SAP Financial Accounting (FI), acquisition tax is used to record and track taxes that are paid on acquisitions. 
  
  How to use it: 
  In SAP FI, acquisition tax can be set up in the Tax Code field in the vendor master data. This will allow for the tracking of taxes that are paid on acquisitions. Additionally, when creating a purchase order, the Tax Code field can be used to specify which tax should be applied to the purchase order. 
  
  Tips & Tricks: 
  When setting up acquisition tax in SAP FI, it is important to ensure that all relevant information is entered correctly. This includes the tax rate, as well as any applicable exemptions or deductions. Additionally, it is important to ensure that all relevant documents are kept on file in order to ensure compliance with local tax laws. 
  
  Related Information: 
  For more information on acquisition tax in SAP FI, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SAP_FI/2020_05_500/en-US.