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

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  =

  =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
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