What is compensatory levy in SAP SLL - Global Trade Services?

SAP Term: compensatory levy

• Component: SLL

• Component Name: Global Trade Services

• Description: Special import duty applied in the EU. A commodity imported to a country on a temporary basis, to be used and then returned such as a piece of machinery, is subject to a compensatory levy. A compensatory levy is a percentage of the standard import duty rate if the commodity were being imported on a permanent basis. Compensatory levies apply if the commodity would be dutiable if imported on a permanent basis. There are compensatory levies for exports from the EU to Turkey.

Smart SAP Assistant

• Key Concepts: 
  Compensatory levy is a type of tax imposed by the government on certain goods and services. It is used to compensate for the loss of revenue due to the introduction of a new tax or the reduction of an existing one. In SAP SLL Global Trade Services, compensatory levy is used to calculate the amount of tax that must be paid on imported goods. 
  
  How to use it: 
  In SAP SLL Global Trade Services, compensatory levy is calculated based on the country of origin, the type of goods being imported, and the applicable rate of tax. The amount of compensatory levy can be adjusted based on any applicable exemptions or discounts. The amount of compensatory levy must be paid before the goods can be imported into the country. 
  
  Tips & Tricks: 
  It is important to keep track of any changes in the rate of compensatory levy as this can affect the amount that must be paid. It is also important to ensure that all applicable exemptions and discounts are taken into account when calculating the amount of compensatory levy due. 
  
  Related Information: 
  Compensatory levy is just one type of tax that may be imposed on imported goods. Other taxes such as customs duty, excise duty, and value-added tax may also apply depending on the country and type of goods being imported. It is important to understand all applicable taxes before importing goods into a country.