The new tax code UG has been created for grocery purchases from out-of-state vendors for which use tax accrues at a state tax rate of 2%.
County and city tax rates are derived from the jurisdiction code and remain unchanged.
The UG tax code:
· Calculates and accrues state tax at 2%.
· Is used in invoices from out-of-state vendors for grocery purchases.
· Can be used in direct invoices (FB60) and logistic invoices (MIRO).
· May be used only for groceries purchased for consumption.