Question - What are the steps involved in the underlying system for determining the tax number and tax classification?
Answer -
There is a sequence of steps included in determining the tax number as well as tax classification. These are –
- In case the payer has a VAT registration number, it is easy to copy the tax classification and tax number from the payer. Further, this tax number is copied depending on the ‘country of destination relevant for taxes.’
- If step 1 is not able to apply or ship-to party has a VAT registration number, it is possible to copy the tax number and classification from the ship-to party.
- Moreover, if step 2 also doesn’t work, then also tax number and tax classification can be copied from the sold-to party.