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Tax Service: Calculate Indirect Taxes in SAP S/4HANA Cloud and on-premise

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Are you an SAP S/4HANA user interested in easily determining and calculating indirect taxes in your business transactions (such as sales and purchase orders)?

Do you want to ensure compliance by delivering in-time tax updates?

If your answer is yes, then keep on reading!

In this blog post you will learn a bit more about the SAP Localization Hub, tax service and how the service can help you ensure you have correct and consistent calculation of tax in your SAP S/4HANA system.

SAP Localization Hub, tax service helps you to determine and calculate applicable country/region-specific indirect taxes and stay legally compliant. It is a cloud based (multi-tenant) API that gets relevant data from applications, performs the tax determination/calculations and then returns the correct tax amounts. You can use the service’s own calculation engine or integrate a partner solution to conduct your business operations.

If you’re working on SAP S/4HANA or SAP S/4HANA Cloud, you can integrate the tax service to easily calculate taxes in business transactions in your system.

This means that when you create or edit business transactions, SAP S/4HANA (cloud or on-premise) sends the data required to determine and calculate taxes to the tax service. The tax service uses its own calculation engine or the service of a partner to calculate these taxes according to local guidelines and sends the results back to SAP S/4HANA.

This ensures that you can increase efficiency and focus on your key tasks due by using a low maintenance tax calculation engine in a centralized service in the cloud!

Do you want to know more details about the tax service and supported countries and regions? Then have a look at the service’s documentation in the SAP Help Portal.

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