What is non-deductible input tax in SAP SBO - SAP Business One?

SAP Term: non-deductible input tax

• Component: SBO

• Component Name: SAP Business One

• Description: A tax already paid to a vendor that cannot be balanced against output tax. Business persons pay an input tax to vendors and output tax to the tax office. One part of the input tax, the deductible input tax, can be balanced against the output tax, that is, a business pays a tax on sales/purchases only on its own added value. The other part, the non- deductible input tax, is excluded from this arrangement and depends on the applicable tax law of the appropriate country.

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• Key Concepts: 
  Non-deductible input tax is a type of tax that is not eligible for deduction when calculating the taxable income of a business. This type of tax is typically imposed on goods and services that are not related to the business’s core operations, such as luxury items or entertainment expenses. In SAP Business One (SBO), non-deductible input tax is tracked separately from other taxes and can be used to calculate the total amount of taxes owed by the business. 
  
  How to use it: 
  In SBO, non-deductible input tax is tracked separately from other taxes. When creating a new transaction, users can select the “Non-Deductible Input Tax” option in the “Taxes” section. This will allow users to enter the amount of non-deductible input tax associated with the transaction. The total amount of non-deductible input tax can then be used to calculate the total amount of taxes owed by the business. 
  
  Tips & Tricks: 
  It is important to keep track of non-deductible input tax separately from other taxes in order to accurately calculate the total amount of taxes owed by the business. Additionally, it is important to ensure that all transactions associated with non-deductible input tax are properly documented in order to avoid any potential issues with taxation authorities. 
  
  Related Information: 
  For more information on non-deductible input tax and how it is used in SBO, please refer to SAP’s official documentation on taxation in SBO. Additionally, users can contact their local taxation authority for more information on how non-deductible input tax is handled in their jurisdiction.