Wiki Change:

omfgppc
2009-02-27
2013-03-08
  • omfgppc
    omfgppc
    2009-02-27

    You have subscribed to a wiki page or wiki category on "xTuple" for change =
    notification.

    The "EnhancedTaxInternationalization/Discussion" page has been changed by j=
    rogelstad:

      ----
      =

      =3D=3D UK VAT Configuration =3D=3D
    - This is part of a production setup currently in use, and was based on a t=
    hrowaway comment by jrogelstad on a forum post : "What we are now calling t=
    ax authorities at the order and invoice level are really more like tax grou=
    ps." =

    + This is part of a production setup currently in use, and was based on a t=
    hrowaway comment by jrogelstad on a forum post : "What we are now calling t=
    ax authorities at the order and invoice level are really more like tax grou=
    ps."
      =

    - They are, and it works a treat :-) =

    + They are, and it works a treat :-)
      =

      This configuration allows for selling and buying in the UK, the EU, and t=
    he rest of the world - the three distinct geographical zones relevant to UK=
    VAT.
      =

    - Trivial changes to names and rates should allow this to be used as a mode=
    l for other EU countries, or it may be useful as a basis for other VAT type=
    schemes elsewhere. =

    + Trivial changes to names and rates should allow this to be used as a mode=
    l for other EU countries, or it may be useful as a basis for other VAT type=
    schemes elsewhere.
      =

      =3D=3D=3D Tax Authorities =3D=3D=3D
    - There are 4 tax authorities: =

    + There are 4 tax authorities:
      =

    -  . VAT-UK - United Kingdom =

    +  . VAT-UK - United Kingdom
    -  . VAT-NA - Not Applicable (Special case *only* for purchase orders to UK=
    Non-VAT registered suppliers/vendors) =

    +  . VAT-NA - Not Applicable (Special case *only* for purchase orders to UK=
    Non-VAT registered suppliers/vendors)
    -  . VAT-EU - European Union =

    +  . VAT-EU - European Union
    -  . VAT-RW - Rest of the World =

    +  . VAT-RW - Rest of the World
      =

      These get assigned to customers / prospects /  vendors as appropriate.
      =

      =3D=3D=3D Tax Types =3D=3D=3D
    - There are 5 tax types: =

    + There are 5 tax types:
    -  . Freight (System defined) =

    -  . VAT-S - Standard Rate VAT type =

    -  . VAT-R - Reduced Rate VAT type =

    -  . VAT-Z - Zero Rate VAT type =

    -  . VAT-X - Exempt Rate VAT type =

      =

    - These get assigned to items as =

    +  . Freight (System defined)
    +  . VAT-S - Standard Rate VAT type
    +  . VAT-R - Reduced Rate VAT type
    +  . VAT-Z - Zero Rate VAT type
    +  . VAT-X - Exempt Rate VAT type
      =

    + These get assigned to items as
    -  . Tax Authority: Any =

    -  . Tax Type: The appropriate VAT-? type - usually VAT-S =

      =

    +  . Tax Authority: Any
    +  . Tax Type: The appropriate VAT-? type - usually VAT-S
      =

      =3D=3D=3D Tax Codes =3D=3D=3D
    - There are 6 Tax Codes: =

    + There are 6 Tax Codes:
      =

    -  .- The usual four for the UK:
    +  . - The usual four for the UK:
    -  . VAT-S - VAT Standard rate for UK @ 15% =

    +  . VAT-S - VAT Standard rate for UK @ 15%
    -  . VAT-R - VAT Reduced rate for UK @ 5% =

    +  . VAT-R - VAT Reduced rate for UK @ 5%
    -  . VAT-Z - VAT Zero rate for UK @ 0% =

    +  . VAT-Z - VAT Zero rate for UK @ 0%
    -  . VAT-X - VAT Exempt rate for UK @ 0% =

    +  . VAT-X - VAT Exempt rate for UK @ 0%
    -  .- And two special ones
    +  . - And two special ones
    -  . VAT-EU - VAT Zero rate for EU exports @ 0% =

    +  . VAT-EU - VAT Zero rate for EU exports @ 0%
       . VAT-RW - VAT Zero rate for non-EU exports @ 0%
      =

    - Note the four different 0% rates.  These allow VAT and ECSL reporting lat=
    er. =

    + Note the four different 0% rates.  These allow VAT and ECSL reporting lat=
    er.
      =

      =3D=3D=3D Tax Assignments =3D=3D=3D
    - The magic (or the hack!) is done in the tax assignments. =

    + The magic (or the hack!) is done in the tax assignments.
      =

    - VAT-UK gets each Tax Type mapped to the corresponding Tax Code: =

    + VAT-UK gets each Tax Type mapped to the corresponding Tax Code:
    + =

       . Freight -> VAT-S
    -  . VAT-S -> VAT-S =

    +  . VAT-S -> VAT-S
    -  . VAT-R -> VAT-R =

    +  . VAT-R -> VAT-R
    -  . VAT-Z -> VAT-Z =

    +  . VAT-Z -> VAT-Z
    -  . VAT-X -> VAT-X =

    +  . VAT-X -> VAT-X
    - =

      =

      VAT-EU gets all Tax types mapped to Tax Code VAT-EU
      =

    - VAT-RW gets all Tax types mapped to Tax Code VAT-RW =

    + VAT-RW gets all Tax types mapped to Tax Code VAT-RW
      =

    + This trick effectively bypasses the xTuple Tax Type to Tax Codes logic, a=
    llowing very simple day to day configuration for VAT.
      =

    - This trick effectively bypasses the xTuple Tax Type to Tax Codes logic, a=
    llowing very simple day to day configuration for VAT. =

    + Items get assigned their correct UK VAT code (as a single xTuple tax type=
    ) using the unmodified user interface (Tax Types tab)
      =

    - Items get assigned their correct UK VAT code (as a single xTuple tax type=
    ) using the unmodified user interface (Tax Types tab) =

    + Customers / Prospects / Vendors get assigned a Tax Authority based on the=
    ir geographical location using the unmodified user interface (Default Tax A=
    uthority dropdown)
      =

    - Customers / Prospects / Vendors get assigned a Tax Authority based on the=
    ir geographical location using the unmodified user interface (Default Tax A=
    uthority dropdown) =

    + This works very simply with the existing tax implementation in xTuple, an=
    d a selection of custom scripts and reports handles the rest of the require=
    ments.
      =

    + The single most useful script is one that calculates the correct VAT to d=
    isplay on purchase orders, making PO's align better with vendor invoices.
      =

    - This works very simply with the existing tax implementation in xTuple, an=
    d a selection of custom scripts and reports handles the rest of the require=
    ments. =

    + This script and it's associated database changes will be cleaned and adde=
    d at a later date.
      =

    + The UK VAT aims for this specification are:
      =

    - The single most useful script is one that calculates the correct VAT to d=
    isplay on purchase orders, making PO's align better with vendor invoices. =

    - =

    - This script and it's associated database changes will be cleaned and adde=
    d at a later date. =

    - =

    - The UK VAT aims for this specification are: =

    -  . Adding better core support for the purchasing side of VAT, avoiding th=
    e need for custom scripting. =

    +  . Adding better core support for the purchasing side of VAT, avoiding th=
    e need for custom scripting.
       . Adding core support for VAT reporting (eg VAT breakdown by tax rate fo=
    r invoices, adding ECSL reports)
      =

      Hopefully this will be of use to other UK or EU users.
      =

      -petebisson
      =

    + I guess I'm not clear what the "hack" is here.  Sounds like you are using=
    tax types and assignments in the manner they were intended to be used.  So=
    me of the changes I've started laying out should make use of tax codes and =
    tax assignments and subsequent reporting much more practical than it is now.
    + =

    + I've been challenging several folks involved in the tax effort on the nec=
    essity of calculating tax on P/O.  So far I've left that off the specificat=
    ion.  I'm trying to understand why this is necessary.  Why not just capture=
    the tax on the voucher when you get the invoice?  Here are some related qu=
    estions to the P/O tax question:
    + =

    +  * What is the relationship of the estimated tax on the P/O to the vouche=
    r?
    +  * Do vendors in VAT countries break down tax to the line item level on t=
    heir invoices?
    +  * If so, does this mean you capture tax as a component of P/O liability?
    +  * If so, what happens if the invoiced tax is different than your estimat=
    ed tax?  Is a variance recorded?
    +  * If so, is tax rolled into material costs?  Is it a separate cost eleme=
    nt?
    +  * If not, and the vendor simply provides tax totals for on the invoice, =
    how do you reconcile line item tax distributions?
    +  * Is the P/O tax calculation simply informational?  If so then the "real=
    ' tax just gets manually entered on the voucher.  If that is the case, does=
    n't calculating P/O tax create a lot of work to maintain tax tables for the=
    purchasing side just for some "nice information?"  How is this information=
    used?  What is its value?
    + =

    + I believe I completely understand the necessity of capturing purchase tax=
    es on the voucher for VAT reporting purposes and have already included some=
    description on this specification as to how that would work.
    + - John 2009-02-26 14:00:31
      ----
      =