What is countervailing duty in SAP FI - Financial Accounting?

SAP Term: countervailing duty

• Component: FI

• Component Name: Financial Accounting

• Description: A form of excise duty imposed on imports that are subsidized by the country in which they were manufactured. Countervailing duty also known as CVD is intended to make the imports more expensive, thereby redressing any competitive advantage they might have over goods produced locally.

Smart SAP Assistant

• Key Concepts: 
  Countervailing duty is a type of import tax imposed by a government on imported goods to offset the subsidies given to the exporter by their government. In SAP Financial Accounting (FI), countervailing duty is used to calculate the amount of tax due on imported goods. 
  
  How to use it: 
  In SAP FI, countervailing duty is calculated based on the country of origin of the imported goods and the amount of subsidy given by the exporter’s government. The amount of countervailing duty due is then added to the cost of the imported goods. 
  
  Tips & Tricks: 
  When calculating countervailing duty in SAP FI, it is important to ensure that all relevant information is taken into account, such as the country of origin and the amount of subsidy given. This will ensure that the correct amount of tax is calculated and paid. 
  
  Related Information: 
  Countervailing duty is just one type of import tax that may be imposed on imported goods. Other types of import taxes include anti-dumping duties, tariffs, and value-added taxes (VAT). It is important to understand all types of import taxes in order to ensure that all taxes due are paid correctly.