Define Tax Determination Rules You specify the valid tax types in transaction OVK1.

More than one tax type can be defined for a country by defining the sequence. The SAP System determines the taxes automatically within pricing. In the standard SAP R/3 System, the elements of tax calculation are predefined ( for example, tax condition type "MWST" for taxes on sales and purchases). Assign the plant for Tax Determination in OX10, using the country key, the SAP S ystem recognizes which tax type is valid for a plant and thus which taxes are re levant when creating an SD document. Define the Customer Taxes in OVK3, you will maintain the tax code in Customer Ma ster. Define the Material Taxes in OVK4, which will then be maintain in Material Maste r. For example :MWST GST MWST GST 0 1 Tax Exempt Liable for Taxes

Now, you define the Tax Determination in VK12. VK12 - Domestic Taxes/Export Taxes Condition Type Customer Taxes 0 0 1 1 MWST Material Taxes Rate Taxes 0 1 0 1 0 0 0 9 % % % %

In this example, if both the Customer Master and Material Master Tax code is 1, Tax will be included when you create the Sales Order.