Tax Reporting Setup Examples
Example: On a UK VAT return, Box 1 must contain the value of tax on sales other outputs. Box 6 must contain the value of the sales and other outputs excluding the tax. You define two tax boxes:
• UKBox1 is type tax.
• UKBox6 is type base.
You then create a tax group, UKSalesGroup, and assign UKBox1 and UKBox6 to this group.
After defining the two boxes and assigning them to a group, specify this group for the Customer Invoice Tax Group and for the Customer Credit Note Tax Group for the VAT rate in Tax Rate Maintenance. The system uses this information during the generation of formal tax reports for the relevant reporting authorities.
Now, a customer invoice is posted for 117.50 pounds with a tax rate of 17.5%, generating the following results:
• 100 pounds displays in box UKBox6.
• 17.50 pounds displays in box UKBox1.
Note: As the Customer Credit Note Tax Group is also defined as UKSalesGroup, if posting a customer credit note, the base and tax values are also included within the above boxes
Example: On a UK VAT return:
• Box 1 must contain the value of tax on sales other outputs.
• Box 6 must contain the value of the sales and other outputs excluding tax.
• Box 8 must contain the value of the sales and other outputs to EC Member States excluding tax
Define three tax boxes:
• UKBox1 is type tax.
• UKBox6 and UKBox 8 are type base.
Create a tax group, UKECSalesGroup, and assign UKBox1, UKBox6, and UKBox8 to this group.
After defining the boxes and assigning them to the group, specify this group for the Customer Invoice Tax Group and for the Customer Credit Note Tax Group for the VAT rate in Tax Rate Maintenance.
Now, a customer invoice is posted for 117.50 pounds with a tax rate of 17.5%, generating the following results:
• 100.00 pounds displays in tax box UKBox6.
• 17.50 pounds displays in box UKBox1
• 100.00 pounds displays in tax box UKBox8