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SAP Business One Tax as a Service Update for US Localization

Learn about the latest update to SAP Business One Tax as a Service (TaaS) for US Localization. Discover the new features and how to prepare for the transition to the upcoming solution. Upgrade to SAP Business One V.10 for a smoother experience.




The SAP Business One Tax as a Service (TaaS) feature is used when there is a matching tax rate based on the marketing documents and business partner properties. TaaS provides the latest tax rates and allows users to use these rates in document creation. Tax codes are populated and calculated based on information from TaaS and business partner master data.

Tax Service was released in 2015 by SAP’s Globalization Services team and was made available to SAP Business One customers in 2016. After a few years, the Globalization team decided to put Tax Service on maintenance and most recently made the decision this year to discontinue the existing SAP Localization Hub and develop a replacement to be implemented in May 2022.

Learn more about what you can expect from this new solution and how you can prepare for the transition.

New Solution | Generic Tax Service API & Direct Built-In Integration

The replacement for the Localization Hub Tax Service is in development for FP2205 (May 2022). While there will be some minor changes, the new platform is expected to provide an almost identical user experience as the current Tax Service. No new changes will occur within documents, and tax rates will be pulled from the same location.

New features include:

SAP Business One Tax Service (API)

This release will feature a brand-new API and service which will connect to a repository of tax rates maintained in a special Electronic Documents Service (EDS) database. This database is currently available in US localization.

Built-In Integrator to Current Provider

Tax rates will be regularly downloaded and stored in a small database under EDS. The same service will be continued as what is currently being used, providing a similar, if not identical user experience


Currently, the release is scheduled for May 2022, with the original SAP Localization Tax Service ending in July 2022. Customers will be required to upgrade their system to FP2205 in June, prior to the original service ending.

If you are currently using the Tax Service, work with your SAP partner to plan for the upcoming release. SAP recommends if you have not already done so, upgrading to Version 10.0 of SAP Business One to ensure a smoother transition to FP2205. They predict that with SAP Business One V.10, the process will be much quicker, and unexpected issues will be reduced significantly.

There will be additional information closer to July 2022, however, if you have any questions or are ready to update your system to V.10, reach out to your partner today.