2017-11-13
Page 1/6
2456119 - VAT Baseline Package for United Arab Emirates Version
17
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-AE-FI ( Financial Accounting )
Please find the original document at https://launchpad.support.sap.com/#/notes/ 2456119
Symptom The United Arab Emirates (UAE) released the text of its domestic Value Added Tax Law published by the Ministry of Finance on August 28, 2017 The Federal Decree Law No. (8) of 2017 on Value Added Tax outlines the tax scope, rate, responsibility for tax, supply of goods and services in all cases, including supply in special cases, supply of more than one component, supply via agent, supply by government entities and cases of deemed supply. The law also defines the tax registration and deregistration, as well as mandatory tax registration, tax group, registration exceptions, tax registration of government bodies and voluntary registration. Rules pertaining to supplies also include date of supply, place of supply of goods, place of supply of water and energy, place of supply of services, place of supply in special cases and place of supply of telecommunication and electronic services. The standard VAT rate of 5% will be applied on goods and services (for example, food, consulting services, maintenance works etc.) that are not VAT exempt or zero-rated. The Federal VAT Law subjects a number of specific transactions to the zero rate or designates them as exempt from VAT, meaning VAT will not be accounted for on these supplies.
Other Terms Tax rate, VAT, tax on sales/purchases, UAE, GCC, MENA, Arab Emirates
Reason and Prerequisites New legal changes Proposal to introduce Value Added Tax (VAT) in United Arab Emirates from January 2018
Solution Version
Date
Reason
v.17
19.09.2017
Update the BC sets (if you have implemented this SAP Note before v.17, p
v.16
14.09.2017
Released for Customer
from v.1 to v.15
14.09.2017
Pilot release
© 2017 SAP SE or an SAP affiliate company. All rights reserved
2017-11-13
Page 2/6
SAP deliver the standard configurations forVAT in the United Arab Emirates Country Version. The set of configurations in this SAP Note is based on legislations and regulations, which have been published in the Federal Decree Law No. (8) of 2017 on Value Added Tax. The following activities are included in the BC set and the attached excel sheet:
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 TAXAEN 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 RVAAAE 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 RMAE00 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), thi s 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 17: These condition types AEAV, AEVV, AEAA, AEVA have been removed and replaced by standard condition types MWAS, MWVS, MWVN, MWVZ, NLXA, NLXV Update the pricing procedures TAXAEN, RVAAAE, RMAE00
Manual Activities: 1. Manual Activities if you have implemented this SAP Note before v.17: a. Delete the FI tax procedure TAXAEN b. Delete the SD tax procedure RVAAAE c. Delete the MM tax procedure RMAE00 3. Implement the VAT BC set: 1. Choose the right BC set (in attachments) based on your current SAP release
© 2017 SAP SE or an SAP affiliate company. All rights reserved
2017-11-13
Page 3/6 ZAE_VAT_SETTINGS for SAP ECC 6.0 customers. ZAE_VAT_SETTING_S4 for SAP S4 customers
3. Follow the steps given below: 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 AE_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 yo ur 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 | | Release 619 All Support Package Levels | -----------------------------------------------------------------------Caution:
You have to perform this manual activity separately in each system into
which you transport the Note for implementation. 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
© 2017 SAP SE or an SAP affiliate company. All rights reserved
2017-11-13
Page 4/6
stored in Table T007V. 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) 4. Run the import. Notes for the transport of tax accounts · When you transport tax codes, no tax accounts are transported. · Please 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/720008774c11d395f200a0c930dc
-----------------------------------------------------------------------|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. 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. 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) 4. Run the import. Notes for the transport of tax accounts · When you transport tax codes, no tax accounts are transported. · Please 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/720008774c11d395f200a0c930dc
© 2017 SAP SE or an SAP affiliate company. All rights reserved
2017-11-13
Page 5/6
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
2540122
UAE Excise Tax codes
Attachments File Name
File Size
Mime Type
ZAE_VAT_SETTINGS.bcs
1137
application/octet-stream
ZAE_VAT_SETTINGS_S4.bcs
942
application/octet-stream
AE_TAX_guide.xlsx
64
application/vnd.openxmlformats-officedocument.spreadsheetml.sheet
© 2017 SAP SE or an SAP affiliate company. All rights reserved
2017-11-13
Page 6/6 Terms of use | Copyright | Trademark | Legal Disclosure | Privacy
© 2017 SAP SE or an SAP affiliate company. All rights reserved
