Adding New Tax Authorities

Objective

After completing this lesson, you will be able to describe how to add a new tax authority.

New Tax Authorities

Creating a new Tax Authority is the first step in configuring VAT for a country that has not already been set up in your site. In a previous lesson, you learned how to work with Tax Rate Types and Tax Rates within existing Tax Authorities. Many of the skills you learned in that lesson will be reinforced in this lesson.

Scenario

It's currently August of 2023, and your company has announced its plans to open a shared services center in Budapest, Hungary in the first quarter of 2024. You've checked your SAP Concur site and have confirmed that you need to create a new configuration to support your Hungarian users. You've done the research and discovered that Hungary has three tax rates of 27%, 18%, and 5%. You're ready to use this information to create a Tax Authority for Hungary in your site.

Create a Tax Authority

Steps

  1. Create a new tax authority.

    To create a New Tax Authority, select Tax Authorities tab and then, select the New button.
    1. Select the Tax Authorities tab.
    2. Select the New button.

  2. Complete the general tab.

    In the General Tab, enter Tax Authority Name, Country/Region, Tax Name, Non Domestic Code and then, select the Next button.
    1. Type Hungary in the Tax Authority Name field.
    2. Select HUNGARY from the Country/Region dropdown.
    3. Type HUVAT in the Tax Name field.
    4. Type H0 in the Non Domestic Code field.
    5. Select the Next button.

  3. Create a new tax rate type.

    To create a new Tax Rate Type, select New button on the Tax Rate Types tab.

    Select the New button.

  4. Create the standard tax rate type.

    To create the Standard Tax Rate Type, enter Tax Rate Type Name, Calculation Method and then, select Save button.
    1. Type Standard in the Tax Rate Type Name field.
    2. Select Percentage in the Calculation Method dropdown.
    3. Select the Save button.

  5. Create the Other Types

    To create the Other Types, enter Rate Type, and then, select Next button.
    1. Repeat the previous steps to create the Reduced 5%, Reduced 18%, and Zero/Exempt Rate Types.
    2. Select the Next button.

  6. Create a tax rate.

    To create a Tax Rates, select New button on the Tax Authorities tab.

    Select the New button.

  7. Complete the details.

    To add Tax Rate configuration details, enter Rate Type, Effective Date, Tax Percent fields and then, select Save button.
    1. Select Standard in the Rate Type dropdown.
    2. Set the Effective Date to 01/01/2024.
    3. Type 27 in the Tax Percent field.
    4. Select the Save button.

  8. Create the other rates.

    To create the other Tax Rates, enter Rate Type, Calculation Method,Tax Percent fields and then, select Done button.
    1. Repeat the previous steps to define the remaining Tax Rates.
    2. Select the Done button.

Result

The system will now calculate VAT for the Hungarian users.

You should now have the skills needed to add a new Tax Authority. You've seen it briefly in a previous lesson, but the next lesson will focus on how you can control how the taxes appear to your end users via the Employee Related Configurations tab.

Learning

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