Implementing Special Taxes

QAD 2017 Enterprise Edition > User Guides > Global Tax Management > Implementing GTM > Implementing Special Taxes

This section provides additional information on how to implement specialized taxes in GTM.

Tax Exemptions

In GTM, tax exemptions are set up by tax type. You can implement separate tax types for each exemption, or group all exemptions into one tax type. Select the approach that supports the level of detail required for governmental reporting.

Reporting by Exemption

1 In Tax Type Maintenance (29.1.1), set up a separate tax type for each exemption.

2 In Tax Environment Maintenance (29.3.1), assign the type to each tax environment affected by the exemption.

3 In Tax Rate Maintenance (29.4.1), set up 0% tax rates for each exemption tax type.

If the exemption is by customer or supplier, set up 0% rates by usage code. If the exemption is by item or trailer charge, set up 0% rates by item tax class.

4 In the respective maintenance programs, set the Taxable status of all exempt customers, suppliers, product lines, items, and trailer charges to Yes.

Transactions with a non-taxable status do not calculate tax, but you will be unable to report the reason, since GTM cannot match the exempt amounts to the exemption tax types in the tax environment.

Aggregate Reporting

1 In Tax Environment Maintenance (29.3.1), assign the default tax type NON-TAX to each tax environment in which exemptions can be reported in aggregate.

You do not have to set up this type; it is supplied by default. Once you do this, GTM automatically classifies all non-taxable transaction amounts as type NON-TAX.

2 In the respective maintenance program, set the Taxable status of all exempt customers, suppliers, product lines, items, service categories, and trailer charges to No.

When the system encounters a non-taxable transaction amount, it applies a 0% tax rate to it. This rate is supplied with the system.