SAP Accounting Consulting

Symptom
In France and Italy, companies can apply for VAT exemptions to their tax authorities. This means, they will be exempted from paying VAT to their suppliers when purchasing goods or services that are qualified for the exemption.
The company has to first notify their suppliers, when they are granted a VAT exemption. This is done by either passing the VAT exemption certificate itself (like in Italy) or a letter with reference (e.g. in France). They have to let their suppliers know the exemption validity period and the maximum exempt amount, if the amount is limited. The supplier has then to take this VAT exemption into account when invoicing the customer.Maintaining zero max amount would attract full exemption.

Other terms
AP-TTE, Tax Calculation ,TTE , Tax Exemption certificate
Reason and Prerequisites
1)Maintenance of Tax Exemption Certificate Details for a Business PartnerTax Certificate ID, Exemption Period Start and End, Exempt Sales Volume Amount.
2)Tax calculation shall be able to take into consideration tax exemption details and accumulated value.
Solution
This functionality has been introduced in SAP_AP 700 SP16 and onwards.
If customer wants this functionality they need to apply the latest IPC patch as described in note 880749.
For the previous releases this functionality is not present.So for earlier releases (before SP16),customer need not required to apply this note.