Re: Taxsystems

[Jonas S. <jo...@jo...>]

On Mon, 2 Jul 2001, AJ Hettema wrote:

> There are 3 different percentages of salestax, 0%, 7% and 19%.
> The government decide's what salestax is used for a product, so you can't
> change that, and it's nationwide.
>
> A company buys a product with a certain salestaxrange. The netprice of the
> product is for instance 100% + 19% = 119%.
> The price for the inventory is the 100% number. WHen the company sells the
> product to the customer, the price of the product is the total of 2 values.
> (inventory-price + profit) + 19% salestax on the sum of these 2 is the
> netprice for the product.
> THe company can get the salestaxes paid to vendors back from the government,
> but it has to pay the government the salestaxes it receives from it's
> customers.

Similar to the danish sytem (except we only have one salestax of 25%).

What I found was the following:

1) Mark your tax accounts as such in account setup. I have "Incoming tax"
marked as "Payables Tax", "Parts Inventory Tax" and "Service Items Tax" -
and "Outgoing tax" the same but "Receivables Tax" instead of "Payables
Tax". You should have a separate account for 7% and 19% tax (technically
the same account can be used for both incoming and outgoing taxes for one
percentage, but common accounting practice in Denmark is to split it up)

2) Add parts and services and select relevant taxes (off, 7% or 19%)

3) Use "Customer Invoice" and "Vendor Invoice". "Add Transaction" means
"turn off taxation autopilot...". What I have done is add a joker Service
for each Expense/Asset account where I want taxes calculated automatically
but without having an inventory for the goods.


Hope that helps,

Jonas

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Jonas Smedegaard <jo...@jo...> http://dr.jones.dk/~jonas/ +45 40843136
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