Tax code customizing

In this customizing section, various types of VAT breakdowns/splitting, as well as other relevant details are set for records to map when required.

The following combinations can be determined:

Exempt invoices - These are deliveries of goods or provision of services that constitute taxable events for the tax, but for which the Law establishes that they should not be subject to taxation.
These are domestic exemptions, among others.

For this type of invoices, the Tax code, the "Subject - exempt" Tax type, and the corresponding exemption reason must be entered into this table.

Non-exempt invoices without ISP (Reverse charge) - This implies that the status of the taxable person falls on the person who sells or provides the service.
This is the most common type of invoice.

In this case, the Tax code must be set with the "Subject - Not exempt" Tax type and the non-exempt type Without ISP (Reverse charge).
This customization determines the mapping field of Invoices issued Non-Exempt Type, which will take the value 'S1'.

Since non-exempt invoices without ISP (Reverse charge) are the most common, if no tax indicator is added in this transaction, it will be considered as if it were of this type. This way, it avoids having to enter all tax indicators in this transaction.

Non-exempt invoices with ISP (Reverse charge) - This means that the tax status is shifted onto the recipient of the transaction, i.e., the purchaser of the goods or recipient of the service, rather than the seller or service provider, which is most common in VAT.

In this case, the tax codes must be customized with the "Subject to - Not exempt" Tax type and the non-exempt type “With ISP” (With reverse charge).
This customization will determine the mapping field of Non-exempt Type invoices, which will take the value 'S2' if the invoice is of the passive subject type (With reverse charge).

Non-taxable - Operations not subject to VAT are those that do not comply with the principles underlying the tax, or for reasons of tax technique are outside the scope of taxation or are not subject to VAT.

In this case, the tax codes must be customized with the "Not subject" Tax type and also indicate the corresponding non-taxable Cause.

Additionally, breakdowns/splitting will be defined for issued invoices depending on whether they are for the delivery of goods or services, and for received invoices depending on whether they are purchases of current goods, expenses, or investment goods.

TAX CODE CUSTOMIZING

The parameters mentioned in the previous paragraphs are indicated in the following section:

FIELD	VALUES	COMMENTS

FIELD	VALUES	COMMENTS
Tax code	Tax codes existing in the CDS View I_TaxCode
Tax type	1 - Subject- Exempt 2 - Subject- Not exempt 3 - Not subject
Non-exempt type	S1 - Without ISP (Without reverse charge) S2 - With ISP (With reverse charge)	Select the type of exemption only in the case of Subject-Not exempt type Tax codes.
Exemption reason	E1 - Exempt Art. 20. E2 - Exempt Art. 21. E3 - Exempt Art. 22. E4 - Exempt Art. 23 y 24. E5 - Exempt Art. 25. E6 - Exempt others.	Select the exemption reason only in the case of Subject-Exempt type Tax codes.
Non-taxable cause	OT - Not subject art. 7. Other cases of non-taxation. RL - Not subject due to localization rules. VT - Not subject, operations carried out on behalf of third parties. IE - Not subject to TAI due to localization rules, but it charges foreign tax, IPSI/IGIC, or VAT from another EU member state.	Select the non-taxable cause only in the case of a Not subject type Tax codes.