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New Spanish Legal Requirements. New tax rates 2010.

As you probably know, new tax rates will apply in Spain from July 1st 2010, with this blog we want to give you an FAQ space regarding this changes as well as some guidelines about the implementation of it in the FI module.

Which is the change?

The VAT percentage will be changed as follows:                                                                                                                     
  – the reduced VAT rate will be increased 1 point  from  7% to  8%  
  – the regular VAT rate will be increased 2 points from 16% to 18%  

What to do?

1.Do not change the percentage rates for already existing tax codes.

2. Create new tax Codes
Follow  Customizing path (Transaction FTXP):
 Financial  Accounting global settings
   -> Tax on sales/purchases – Calculation
           -> Define tax codes for sales and purchases.
 Copy  your old tax codes into the new tax codes and adjust their texts (in properties), and the new  percentage rate.                 

                               
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3. Update the account determination.
Follow  Customizing path (Transaction OB40).          
Financial  Accounting global settings
   -> Tax on sales/purchases
        -> Posting
           -> Define tax accounts  

4. Check “Tax Category” in for your Tax-relevant G/L accounts on Company Code level.
Only in case you defined tax codes to be defaulted in field “Tax Category” in the G/L account master record, these tax codes must be replaced by new tax codes. You might check the entries in table SKB1 for field MWSKZ.

5.  For companies that are using report RFIDESM340 to obtain the model 340
Check if you need to update table ES340_OPRKEY in transaction SM30 with the new tax codes.

6. Check the variants for reports that select tax codes in their selection screen, and update them with the new tax codes.

7. Check and update all your templates: your Recurring and Sample Documents, account assignment models, sample master records, etc.      

                                         
8. If you receive data from non SAP systems.
Check the need to update the new tax codes in all feeder and external systems.                                                                   
 
9. For  changes in other SAP modules (FI-TV,  MM, Invoice Verification,
SD, IS-RE) please refer to SAP note 117983.

                                                                                                                                                             

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17 Comments

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      1. Spyros Stamou
        Hi Teresa,

        we have an issue with the report Model 340 for Spain. My FI colleagues say that the only way to make the report work is bundle VAT and Recargo in the same tax code.
        Currently we have 2 different tax codes for VAT and Recargo.
        I could see in your example above that you dont use Recargo in your VAT tax code.
        Please advise.

        (0) 
  1. silvia gil
    Hi Teresa,
    Congratulations for this post.
    I have gone though several notes to check how to change:
    -existing PO’s
    -existing Contracts
    -existing inforecords
    seems that RM06MWS & RM06ENMW are able to perform this changes.
    But RM06ENMW does not change any tax code if the contract has release indicator Z. Is there any massive program to unrelease contracts, just to be able to run RM06ENMW and release massively again?

    Thanks again for your post.
    Silvia Gil

    (0) 
  2. Izaskun Oleaga Rapp
    Hi Teresa,

    After reading this blog, we have recomended to our customer to create new VAT indicators following SAP recomendation, but our customer is afraid that with the new VAT indicators the VAT derivation won’t work propertly, so they want to modify the porcentage rates.
    Is there any way to know the reason for not modifying the porcentage rates and create the new indicators?
    Thanks in advance,
    Izaskun.

    (0) 
    1. Teresa Lorite Post author
      Hi Izaskun.

      To change the existing tax percentage would cause inconsistencies. 

      Please notice that via FTXP, it is not possible to have a tax rate with one percentage valid to one period and a new tax percentage valid to the next period. These peirod fields just do not exist in the tax code table. (Please refer to table A003, Application TX, it is not time dependant)
                                                       In the SAP Standard System, you should never change the percentage rate of an exiting tax codes: You should always define new tax codes when the percentage changes, as per system design.                                                                                  
      I cannot provide you a list of all the potential problems that might cause to change the prcentage of an an exiting tax code. Further problems could arise during reversal of old documents, posting of parked documents, posting from MM, CO etc.                
                                                       Even if you test some scenarios, you might find further difficulties later on.

      I hope it is clearer now.

      Best regards  

      (0) 
      1. silvia gil
        Dear Izaskun,

        New tax codes with the new rates are necessary also to fulfill the law ‘Ley 26/2009’.

        If you like, you can check the web of Garrigues:
        http://www.garrigues.com/esp/comunicacion/publi_01b.aspx?idIndice=14187

        where in the second part , ‘Supuestos de modificación de la base imponible’ of the document ‘CUESTIONES A CONSIDERAR EN RELACIÓN CON EL INCREMENTO DE LOS TIPOS IMPOSITIVOS DEL IMPUESTO SOBRE EL VALOR AÑADIDO, is explained how to deal from the 1st of July with business operations that modify taxes devengadas before july the 1st.

        Thanks and regards,
        Silvia

        (0) 
      2. Administrador SAP
        Hello Teresa,

        We are analyzing which new tax indicators we will create. We will create new codes that have not been used in the system up to now.
        I suppose SAP will create NEW standard codes also for this purpose or you will continue using the same tax indicators with the new rates?

        If SAP will create new standard codes we would like to know which the new codes will be.

        The SAP note 984842 applied to Germany in the past (2007) contains the same tax change (with different rates).

        Please, let me know.

        Many Thanks,
           David Rodríguez.

        (0) 
  3. Jaume Guardiola Guerrero
    Hi,
    My question is how system determines the tax id (A3) in the consignment material posting (value for field RKWA-MWSKZ?

    I don’t find any consigmnent info record with this field informed.

    Thank you.

    (0) 
  4. Jaume Guardiola Guerrero
    Hi,
    Our tax determination in purchasing is done, in tcode MEK2 with condition MWST), by Destination country, Tax indicator for material and tax indicator import.

    To avoid to create new “Tax indicator for material” value for new tax and update all material master records, we will update the “Tax indicator for material” description for value “1” (16% to 18%) and for value “2” (7% to 8%). Afterwards, we will update the tax condition value with the new tax code  and the new percentage.

    Is this correct or we have to create another “Tax indicator for material” and update all material master record and create new condition records for the new value?

    Thank you in advance for your help.

    (0) 
  5. Mario Cuellar
    Good evening.

    There is a change of VAT taxes next month in Spain, We have prepared
    the system to take the new taxes at the beggining of July. But, we are
    wondering if it is possible to update massively the previous taxes of
    July in case we have a credit (ZG2) that we get from a billing of June
    or previous months

    I know it is possible to update the taxe value for an only credit by
    going to Conditions and clicking in Update, but the sytem takes the new
    ones. How could we retrieve the old taxes? I think that maybe changing
    the Billig date. Please, could you tell me about this?

    Thank you very much.

    (0) 
    1. Teresa Lorite Post author
      Hello

      You should not change existing tax codes,
      just create new ones with the new percentage rates, please read the risks of changing them in some other question already answered in this blog.

      Best regards

      (0) 
  6. Administrador SAP
    Hello Teresa,

    We are analyzing which new tax indicators we will create. We will create new codes that have not been used in the system up to now.
    I suppose SAP will create NEW standard codes also for this purpose or you will continue using the same tax indicators with the new rates?

    If SAP will create new standard codes we would like to know which the new codes will be.

    The SAP note 984842 applied to Germany in the past (2007) contains the same tax changes (with different rates).

    Please, let me know.

    Many Thanks,
    David Rodríguez.

    (0) 
  7. Mario Cuellar
    Hi.

    We have a problem with returns refered to orders or billings before July. THe system adds 18% VAT even if the order or the billing is previous to july. I would like to ask you how we could solve this because FI department tells us that the correct taxes for this returns are 16%.

    Thanks in avance.

    (0) 
  8. Rita Martinez
    Hello,

    I created new tax codes by copying the existing. I modified the tax rate in that tax code and saved the entry.

    However, when I went back to check it, the rates are not there.

    Any thoughts why this could be happening? I created tax codes S4-S6 as copies of S1-S3.

    Regards,
    Rita

    (0) 

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