Tax Rates

• Tax (field VAT)

This field is used to define a tax code.

• Legislation (field LEG)

Enter or select the legislation code of the company.

When launching the VAT declaration extraction on a VAT entity (within the VAT framework) or on a company (outside the VAT framework), the VAT box setup needs to be compliant with the legislation of the head company as defined in the VAT entity or of the given company.

As a result, when a given VAT declaration needs to be run on VAT entities or companies of different legislations, several VAT box setups must be entered for the same VAT declaration and these legislations.

Example: DCLVATFRA+FRA and DCLVATFRA+BEL

When the French VAT declaration must be run on a French VAT entity and also on a Belgium VAT entity.

For Australian VAT declaration only: Affiliated companies submit GST and BAS data as a group, defined in GST groupings. One member of the group must be designated as the Head entity, representing the group as a single entity for tax purposes.

• Description (field DESAXX)

This long description is used as a title in screens and reports.

By default the short title, the long title or the column header of a data are recorded (on creation/update) in the connection language of the user.
You can add your translation in another language using the Translation function:

• Click Translation from the Actions icon in the corresponding field.
• In the Translation window, add a new language code with the translation in this language.

A user who logs on with this language will view the short description, long description or column header in their connection language if a translation exists. Otherwise, these descriptions will be available in the folder language.

The connection language must be defined as a default language for thefolder.

• Short description (field SHOAXX)

Short title used in the screens and reports. This title is recorded in your connection language.

By default the short title, the long title or the column header of a data are recorded (on creation/update) in the connection language of the user.
You can add your translation in another language using the Translation function:

• Click Translation from the Actions icon in the corresponding field.
• In the Translation window, add a new language code with the translation in this language.

A user who logs on with this language will view the short description, long description or column header in their connection language if a translation exists. Otherwise, these descriptions will be available in the folder language.

The connection language must be defined as a default language for thefolder.

• Company group (field GRP)

Use this field to access the different site/company groups available.
The group entered in this field allows you to filter the information displayed and to guarantee consistency of the function setup, but it is mainly used to have exceptions for several companies regarding a tax rule application.

By entering a company group, you can limit the scope to companies in the selected group only. When this data is used for another record or with a setup element also defined in the group, a control checks that the groups have at least one company in common when the groups are different.  

In addition, a consistency check is performed for the legislations of the companies in the selected group.
At least one of these companies must have the same legislation as the one entered in the Legislation field. If  not, a warning message displays.

• Tax type (field VATTYP)

A tax code can be used to identify several tax types:

• VAT (Value Added Tax): based on the excl.-tax amount
• Additional tax: based on the excl.-tax amount on the quantity or any other item of a document line
• Special tax: based on the excl.-tax amount on the quantity or any other item of a document line
• Local tax: See below.

For a Special tax or Additional tax, select the Subject to VAT check box if the tax type is subject to a VAT.

Local tax

Application

This type of tax is not managed in France.
It is applies to Canada and Argentina.

Prerequisites

The PTX - Tax rates implementation activity code must be activated beforehand.
To manage Argentine local taxes, the KAG - Argentinean activity code must be active.

Principle

Taxes on the document footer are applied according to the region of origin and/or destination.
This feature can be extended to other cases: The local taxes depend on information from the TAXLINK table. They can be used as additional taxes in the document footer. This particular case is useful for preventing the tax from being transferred directly into the table.

Location

• In the Sales module, the local tax is displayed directly on the invoice footer.
• In the Purchasing module, the four additional tax codes are displayed on the line and can be modified.
  If the number of taxes is limited for sales, you cannot specify more than four taxes in purchasing lines.

• Subject to tax (field VATCHA)

Select this check box to specify if a Special tax or Additional tax should be part of the VAT calculation.

Subject to tax does not apply to Local tax and is not needed if VATis selected for the Tax type.

• VAT type (field VATPAY)

This field is used to specify the invoice stage at which the tax must be applied:

• if the 'Issued' box is checked, the tax is due as soon as the invoice is sent (most common case),
• if the 'Paid' box is checked, the tax is due after the invoice payment (service provisions for instance).

 This specification is required for drawing tax declarations.

• Tax rule (field VATVAC)

A tax rule represents the tax territoriality principle, in other words, the calculation rules to be applied to determine the tax amount.
As a general rule, by crossing a tax rule linked to the BP with a Tax level, you can determine the tax code to be applied to the document line and so, to the entry line.
In this field, you enter the tax rule associated with the BP: this tax rule will be suggested by default in all the transactions used by this business partner.

• Accounting code (field ACCCOD)

This field is used to specify the accounting code of the tax.
The accounting code is a default value used in the setting up of accounting entries.
It refers to a table listing a certain number of elements (control accounts, accounts or parts of accounts) that can be used to determine the accounting entries that will be posted.

• Formula (field VATFOR)

Enter the formula number used to modify the calculation basis for this tax.This field is used when an exceptional tax must be calculated using a basis different from the ex-tax amount of the line. For example, some legislations base tax on quantities.

The result of the formula must be stored in the document line to enable the line calculation and total. Two fields, Amount 1 and Amount 2, store the calculated amount on a document line. One of those fields must be selected when a formula is defined. You can select the field in the Amount no. field.

• Amount no. (field VATBAS)

Select the amount to be used to store the result of the formula: Amount 1 or Amount 2.
 This list can only be accessed if a formula is specified.

For a formula applying to taxes, the amount number does not involve purchases. For purchases, there is as many amounts used as tax bases as there are tax codes on the purchase document line.

• Legal mention (field TEXAXX)

Compulsory statements to be printed on the invoice footer.

• Province (field SAT)

This field contains the geographical subdivision corresponding to definition of the postal address. For example, a 'department' for France, and a state for the United-States.

The description of the geographic subdivision, as well as the control on the information entry, are defined in theCountries setup.

This field loads automatically after the postal code and town/city have been entered and is based on the Postal codes setup.
If the field is controlled, the control is carried out with respect to the Geographical subdivision table.

• Application type (field APLTAX)

This field is for the KAG activity code for Argentinean legislation and defines the application sign of a local tax.

• Company (field CPY)

It is the code of the company for which a tax rate is defined.
Only a company with a legislation and group consistent with those defined in the header can be entered.

• Start date (field STRDAT)

Start date for the tax rate application.

• Rate (field VATRAT)

Use this field to specify the tax rate that can be applied to this tax.

• Exempted sale (field VATEXEFLG)

For an EEC rule or tax suspension (Sales module), select this check box so that the tax code for accounting entries and does not trigger a VAT calculation for this rate.

• Deductible % (field DEDRAT)

This field is used to enter a value corresponding to the percentage that can be deducted for non-recoverable taxes.

• Threshold (field AMTTSD)

This field is used to enter a value for setting a deductibility threshold.
 If the rate is inferior to the specified threshold, the tax will not be applied. If the rate is higher than the specified threshold, the tax will be applied.

• Dimension type (field DIE)

This table is loaded automatically with the default dimension types associated with the basic tax data.

• Dimension (field CCE)

The setup determines if the analytical dimensions can be modified. They are initialized based on the setup of the default dimension.

In creation mode, if no order line has been entered and the project code is modified, the analytical dimensions are reset based on the setup of default dimensions.

In creation mode, as in modification mode, if an order line is entered and the project code is modified, the analytical dimensions are not reset.