SAP takes care of tax calculation, tax postings, tax adjustments, and tax reporting through the three FI components; namely GL, AP, and AR.
SAP allows taxation at three levels:
- National level or federal level (Europe, South Africa, Australia, etc.)
- Regional or jurisdiction level (USA)
- National and Regional level (India, Canada, Brazil etc.)
As the requirement of tax configuration in SAP you should define the following;