What is purchase tax in SAP (SBO - SAP Business One)?

SAP Term: purchase tax

• Component: SBO

• Component Name: SAP Business One

• Description: The tax to be paid as a result of creating a purchasing document. The European tax system is based on tax groups that are identified by tax codes. A tax group can be either a purchase tax group or a sales tax group. A purchase tax group is assigned in purchasing document. A sales tax group is assigned in sales documents. In some countries, purchase tax and sales tax are known as VAT.

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• Key Concepts: 
  Purchase tax is a type of indirect tax that is applied to the purchase of goods and services. It is collected by the seller from the buyer and then remitted to the government. In SAP Business One, purchase tax is used to calculate the total cost of a purchase transaction, including any applicable taxes. 
  
  How to use it: 
  In SAP Business One, purchase tax is set up in the Tax Management window. This window allows you to define the applicable taxes for each item or service purchased. The system will then automatically calculate the total cost of the purchase, including any applicable taxes. 
  
  Tips & Tricks: 
  When setting up purchase tax in SAP Business One, it is important to ensure that all applicable taxes are included in the calculation. This will ensure that you are not overpaying or underpaying taxes on your purchases. 
  
  Related Information: 
  For more information on setting up and using purchase tax in SAP Business One, please refer to the official documentation available on the SAP website.