Excise Tax Calculation for the EU Member States & Third countries using SAP Cloud Solution (SCP)

© 2020 by IJCTT Journal
Volume-68 Issue-10
Year of Publication : 2020
Authors : Sarat Chandra Tella
DOI :  10.14445/22312803/IJCTT-V68I10P102

How to Cite?

Sarat Chandra Tella, "Excise Tax Calculation for the EU Member States & Third countries using SAP Cloud Solution (SCP)," International Journal of Computer Trends and Technology, vol. 68, no. 10, pp. 9-13, 2020. Crossref, 10.14445/22312803/IJCTT-V68I10P102

Excise taxes are the taxes imposed on the use or consumption of goods transferred from location to another taxable site. Excise tax authorities impose a tax on certain goods like Alcohol, Ethanol, Biodiesel, Beer, Electricity, Natural gas, coffee, and certain non-alcoholic beverages (only in NL). Most organizations struggle to calculate tax for different business processes and develop different custom reports to suffice internal and external reporting to custom authorities. SAP cloud solution (SCP) of excise tax management is a Saas-based application used to track and trace all goods movements, excise tax-relevant for a tax warehouse. It provides flexibility to maintain master data relevant for excise tax, calculate tax, and generate stock ledger reports used to report authorities. In other words, the SAP Cloud Platform (SCP) of excise tax management is the right tool to manage excise taxes and also has standard integration/APIs with transactional systems like SAP S/4 HANA system without complex enhancements. This article covers functional and technical aspects of implementing excise tax and is broadly classified as 1. Business Processes, 2. Architecture and Integrating SCP with Transactional system (S/4 HANA), 3. Maintenance of master data, 4. Tax Rate, 5. Calculating excise tax for different business processes, 6. Reporting.

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