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Tax Service – How to Use the Tax Service to Determine the ISS Tax Situation – Código de Situação Tributária (CST) para Imposto Sobre Serviço (ISS)

Calculating taxes for Brazil is a complex process. Knowing this, SAP joined the expertise of its partners with SAP S/4HANA (Cloud and on-premise) to reduce your effort and total cost of ownership (TCO) when calculating taxes. Check this blog post to see how you can use the tax service to determine the Imposto Sobre Serviço (ISS) tax situation for Brazil.

To use the tax service in Brazil, you may need to configure and/or confirm the configuration for ISS according to:

  • ABRASF (Associação Brasileira das Secretarias de Finanças das Capitais) Standard;
  • ISS Tax Situation defined by the Municipality.

Once the configuration is correctly maintained in your system, the tax service calculates taxes and determines the ISS Tax Situation,  adding this data to the Nota Fiscal.

Let’s explore the business scenario of a sale of services from São Paulo (SP) to Rio de Janeiro (RJ). You can find the step by step in the SAP Best Practice Explorer > Sales of Service (2EQ) (https://rapid.sap.com/bp/scopeitems/2EQ) > Brazil SAP S/4HANA Cloud > Details > Test Script.

Here you can see the sales order I created to cover this business scenario:

And here is where I enter the tax code for this order:

Once I enter the tax code, the tax service gathers the information and creates a request for my tax partner (in a JSON format) to calculate the taxes.

As a result, the tax partner processes the JSON Request and returns the calculated taxes information to my SAP S/4HANA Cloud.

 

For more details about the tax service, take a look at the documentation in the SAP Help Portal.

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