Taxation is everywhere these days. No matter what companies need to buy or sell, they need to pay tax at the city, county, state, and federal level.
The most challenging part of filing tax is not only the level of complexity, but also ongoing changes in requirements in the U.S market. For all those concerned, SAP Business One offers TaaS (Tax-as-a-Service) to keep up to date with tax changes throughout the world.
What does TaaS do
TaaS provides SAP Business One with up-to-date sales tax and uses tax information as and when required. TaaS removes the need for customers to maintain tax information in SAP Business One, reducing the administrative burden of doing so.
TaaS capabilities include:
- Predefined tax (for example sales tax, VAT) content for numerous countries
- Tax updates are seamlessly pushed to the service
- Time dependent tax exemptions and certificates
- Time bound tax rates and jurisdictions
- Tax nexus determination
How to Setup TaaS
Go to Main Menu > Administration > System Initialization > Company Details > Account Data tab and choose when to use SAP Localization Hub Tax Service. Fill in the blanks following the rules below:
- User Name: b1admin
- Password: b1admin
- OAuth Token Endpoint:
https://oauthasservices-db5aaecda.us2.hana.ondemand.com/oauth2/api/v1/token - Tax Service URL:
https://taxserviced577daf1d-db5aaecda.us2.hana.ondemand.com/TaxService/TaxService/quote - Sales Tax Account for TaaS: according to the accounts used in your database (a default G/L Account is to be used when a new system Tax Code is created from the values or rates retrieved from Tax Service)
- Purchase Tax Account for TaaS: according to the accounts used in your database (a default G/L Account is to be used when a new system Tax Code is created from the values or rates retrieved from Tax Service)
Then TaaS is active.
How to use TaaS
Setup in Business Partner Master Data
TaaS can be set up when creating a new BP master data. Go to Address and create a new “Ship to” address. “TaaS Enabled” is the last choice. Then the tax information will be automatically linked with the corresponding address.
Use in A\R Invoice
TaaS can be used in A\R Invoice. After setting up information in BP Master data, Tax Code is populated and tax is calculated based on information from TaaS and address information form BP Master Data. Please notice TaaS only works with US business partners.
For example, from the example above, Maxi – Teq is located in 4417 Stonebridge Rd, Suite 500, Northampton, 18067, PA and enables TaaS. If we create an A/R Invoice and choose an item from the list, the Tax Code and the Tax amount will automatically show up.
Furthermore, users can get more information by clicking the yellow arrow. This shows you Code, Name and tax rate of state and county.
TaaS can also be used in A/P Invoice and other documents. More information can be found in the brochure: How to Use Tax Service in the US Localization of SAP Business One.
Get the brochure