LCIT License Italy

• Introduction

In France and Italy, a customer can apply for a tax exemption from the local tax authorities and when the exemption is agreed, the customer receives a letter of confirmation with a tax exemption license number. If the customer forwards this letter to the supplier (note : this is related to each sales organization), the supplier must take this tax exemption into account when issuing billing documents to the client (no tax must be calculated inside the document). Introducing the Condition Type LCIT within the pricing procedure, implicates that a new Calculation formula must be created to drive the correct determination of the tax condition MWST ( specifically the MWST tax condition is deactivated with KINAK W or X if License Exemption applies.

In order to enable the management of LCIT the following steps should be realized (Note : the example below describes the creation of one new ZCIT Condition Type, that would respond to the best practice. However in our example we do show the usage of LCIT)

• Create a ZCIT Access Sequence as copy of the LCIT (select the field Payer inside the access sequence. See note 3004409 – Newly added field catalogue ‘Payer’ results in red led when assigning the custom condition table to access sequence – SAP S/4HANA Cloud
  
• Associate ZCIT Access Sequence to ZCIT Condition Type created as a copy of LCFR

• Change pricing procedure assigning the correct routines and assign a new routine to drive the correct calculation of MWST  (901)
  
• Define Tax Relevancy of Master Records (LCIT can be equal to 1 check license)