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2477105 - VAT Baseline Package for Saudi Arabia


Version 11 Type SAP Note
Language English Master Language English
Priority Recommendations / Additional Info Category Consulting
Release Status Released for Customer Released On 19.09.2017
Component XX-CSC-SA-FI ( Financial Accounting )

Please find the original document at https://launchpad.support.sap.com/#/notes/ 2477105

Symptom

The Saudi Arabia Government has approved the final Kingdom of Saudi Arabia (KSA) Value-Added Tax
(VAT) Law and published the statute in the official gazette, Um Al Qura Edition 4681, on 28 July 2017

the Law shall be effective from the beginning of the financial year following the date of publication of the Law
in the official gazette. Accordingly, VAT will become effective in Saudi Arabia on 1 January 2018

The standard rate of VAT prescribed by the GCC VAT Framework is 5%; however, certain goods and
services may be subject to a zero rate or exempt from the levy of VAT.

Other Terms

Tax rate, VAT , tax on sales/purchases, KSA

Reason and Prerequisites

New legal changes

Proposal to introduce Value Added Tax (VAT) in Kingdom of Saudi Arabia from January 2018

Solution

Version Date Reason

v.11 19.09.2017 Update the BC sets (if you have implemented this SAP Note before v.11, please

v.10 23.08.2017 Released for Customer

from v.1 to v.09 10.08.2017 Pilot release

SAP will deliver the standard configurations forVAT in the Kingdom of Saudi Arabia Country Version.

Note: This information is based on legislation and regulations which could be subject to change at any time
by the respective authorities and are therefore not binding. The information will be updated if necessary.

The following activities are included in the BC set and the attached excel sheet:

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FI Configurations
Access Sequences (standard access sequence MWST)
Tax Accounting key (standard accounting keys MWS,VST)
Condition Type (standard condition types i.e. MWAS, MWVS, NLXA, NLXV, MWVN, MWVZ)
Tax Procedure TAXSAN
Assign Country to Calculation Procedure
Tax Codes FI
SD Configurations
Define Condition Table (standard condition tables 078/002/011)
Access Sequences (standard access sequence MWST)
Condition Type (standard condition type i.e. MWST)
Pricing procedure RVAASA
Tax classifications / Customer
Tax classifications / Material
MM Configurations
Define Condition Table (standard condition tables 088/094/087/086/080)
Access Sequences (standard access sequence 0003)
Condition Type (standard condition type i.e. MWVS, NAVS, NAVM)
Calculation Schema RMSA00
Set Tax Indicator for Material
Set Tax Indicator for Plan
Set Tax Indicator for Account Assignment
Activities in FI to be carried out if required
Tax category in the G/L account master records: If the tax category of a G/L account contains a
specific tax code (on company code level), this tax code must be replaced by the new tax code.
Recurring entry original documents: The recurring entry original documents must be checked
individually and adjusted according to the new tax codes.
External systems: Check whether the corresponding adjustments of the tax codes/rates have
been carried out for all external systems which are linked to SA

Changes in version 11:

These condition types SAAV, SAVV, SAAA, SAVA have been removed and replaced by standard condition
types MWAS, MWVS, MWVN, MWVZ, NLXA, NLXV
Update the pricing procedures TAXSAN, RVAASA, RMSA00
Deliver new output tax codes for Saudi Arabia (S0, S1, S2, S3, S4) to be consistent with the S4 cloud tax codes
contents
Update the tax classifications / Material

Manual Activities:

1. Manual Activities if you have implemented this SAP Note before v.11:
a. Delete the FI tax procedure TAXSAN
b. Delete the SD tax procedure RVAASA
c. Delete the MM tax procedure RMSA00
d. Delete the output tax codes (A0, A1, A2, A3, A4, A9, V9)
3. Implement the VAT BC set:
1. Choose the right BC set (in attachments) based on your current SAP release
ZSA_VAT_SETTINGS for SAP ECC 6.0 customers.
ZSA_VAT_SETTING_S4 for SAP S4 customers
3. Follow the steps given below:

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a. Upload the attached BC set using transaction code SCPR3 (Note: this BC set is a template of VAT
configurations and must be adjusted based on business requirements)
b. Activate the BC set using transaction code SCPR20 (Note: never activate it in production
environment!)
c. Refer to the attached excel sheet SA_TAX_Guide for more information about the template
related to the tax codes, condition types, tax procedures, and so on. It will give you an overall
about the tax cofigurations related to VAT. (Note: customer who has lower releases can follow
the steps in this excel sheet for manual implementation).
5. Manual Activities to get the tax rates (MUST):
a. After Activating the BC sets, the tax codes should have been created in the target system without a tax
percentage rate by the import and the tax rates are stored in Table T007V.
b. Perform the below step to get the Tax rates from Table T007V:
1. Transaction FTXP
2. Choose Tax Code -> Transport -> Import.
3. Check the proposed values for the transport request and country. (Note: you must use the request
number QI3K908843 for VAT tax codes)
4. Run the import.
7. Notes:
a. For the transport of tax accounts (When you transport tax codes, no tax accounts are transported,
therefore you need to adjust the tax accounts in your system).
b. For the documented steps to activate BC Sets
https://help.sap.com/saphelp_erp60_sp/helpdata/en/ab/720008774c11d395f200a0c930dcc1/frameset.htm

Manual Activities

------------------------------------------------------------------------
|Manual Activity |
------------------------------------------------------------------------
|VALID FOR |
|Software Component SAP_APPL SAP Application |
| Release 605 All Support Package Levels |
| Release 606 From SAPKH60601 |
| Release 616 All Support Package Levels |
| Release 617 From SAPKH61701 |
| Release 618 All Support Package Levels |
------------------------------------------------------------------------

Caution: You have to perform this manual activity separately in each system into
which you transport the Note for implementation.

Manual Activities to get the tax rates (MUST):

1- After Activating the BC sets, the tax codes should have been created in the
target system without a tax percentage rate by the import and the tax rates are
stored in Table T007V.

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2- Perform the below step to get the Tax rates from Table T007V:
a- Transaction FTXP
b- Choose Tax Code -> Transport -> Import.
c- Check the proposed values for the transport request and country. (Note: you
must use the request number QI3K908847 for VAT tax codes)
d- Run the import.

Notes for the transport of tax accounts (When you transport tax codes, no tax
accounts are transported, you must adjust the tax accounts in your system).

for the documented steps to activate BC Sets


https://help.sap.com/saphelp_erp60_sp/helpdata/en/ab/720008774c11d395f200a0c930dcc1/fr

------------------------------------------------------------------------
|Manual Activity |
------------------------------------------------------------------------
|VALID FOR |
|Software Component S4CORE |
| Release 100 All Support Package Levels |
| Release 101 All Support Package Levels |
| Release 102 All Support Package Levels |
| Release 103 All Support Package Levels |
------------------------------------------------------------------------

Caution: You have to perform this manual activity separately in each system into
which you transport the Note for implementation.

Manual Activities to get the tax rates (MUST):


o After Activating the BC sets, the tax codes should have been created in the
target system without a tax percentage rate by the import and the tax rates are
stored in Table T007V.
o Perform the below step to get the Tax rates from Table T007V:
o Transaction FTXP
o Choose Tax Code -> Transport -> Import.
o Check the proposed values for the transport request and country. (Note: you
must use the request number QI3K908847 for VAT tax codes)
o Run the import.
o Notes for the transport of tax accounts (When you transport tax codes, no tax
accounts are transported, you must adjust the tax accounts in your system).
o for the documented steps to activate BC Sets
https://help.sap.com/saphelp_erp60_sp/helpdata/en/ab/720008774c11d395f200a0c930dcc1/fr

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2017-09-30 Page 5/5

Software Components

Software Component Release

SAP_APPL 605 - 605

SAP_APPL 606 - 606

SAP_APPL 616 - 616

SAP_APPL 617 - 617

SAP_APPL 618 - 618

SAP_APPL 619 - 619

S4CORE 100 - 100

S4CORE 101 - 101

S4CORE 102 - 102

S4CORE 103 - 103

This document is referenced by

SAP Note/KBA Title

2540840 Saudi Arabia (KSA) Excise Tax Codes

Attachments

File Name File Size Mime Type

SA_TAX_guide.xlsx 64 application/vnd.openxmlformats-officedocument.spreadsheetml.sheet

ZSA_VAT_SETTINGS.bcs 972 application/octet-stream

ZSA_VAT_SETTINGS_S4.bcs 782 application/octet-stream

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