Re: [Web-erp-developers] TAX / VAT

[Daintrees <p.d...@pa...>]

Tax can get hairy.

The changes you are proposing Danie does it mean that each line item can
have more than one kind of tax associated with it as per Open-Accounting?

Will the tax category be another field in Stocks - perhaps replacing tax
level.

I have not been through your earlier email so I am probably asking silly
questions I'll go back and read up.

Phil

----- Original Message ----- 
From: "Danie Brink" <br...@na...>
To: <web...@li...>
Sent: Wednesday, August 04, 2004 11:40 AM
Subject: Re: [Web-erp-developers] TAX / VAT


> Ok I will explain how it will be set up using my example.
>
> We set up two tax categories FoodBooks and Other using lowest worst tax
breakout
> i.e. in germany you have 2 and in Say South Africa you have one. Notice
that
> you ignore the 0% as it is always available.
>
> Now you create two tax authorities Germany and South Africa.
> Then we add Taxes for Authorities
> Germany with LowVAT @ 7% GLAcc = XX1 and HighVAT @ 16 % GLAcc = XX2
> South Africa with OneVat @ 14% GLAcc = XX3
> **Note that these are the Names not the Inv Display Lable
>
> Now we assosiate categories with Authorities and Rates and
>
> Germany - FoodBooks = LowVat, Other = HighVat
> South Africa - FoodBooks = OneVat, Other = One Vat
>
> It is slightly more complicated because there are two tax authorities in
play
> per record Receiving And Dispatching but it serves to demonstrate the
point
>
> Selecting On the StockItem for "Core PHP Programing" TaxCategory =
FoodBooks and
> "100x 4 inch nails" TaxCategory = Other
>
> On invoice/Order the Sales Location becomes Dispatch and the Customer
becomes
> receiving thefore resolving with assosiation gives applicable taxes and
GLAcc
> Destinations for those taxes. The Taxes gives the display lables to apear
on
> the invoice.
>
> Note that the previous system also queried an assosiation table so about
the
> only difference is that we join three tables ( Stock, Assosiation, Taxes)
as
> the two required tax authorities are already selected and supplied through
> location and customer. I do not think the over head of adding an extra
table
> into the query will be that significant as the taxes table is realy small
and
> Assosiation is very specific when StockTaxCategory=AssosiationTaxCategory.
>
> I hope this helps or is in line with what you explain.
> You can query your GLAcc to find out exactly how many taxes were
accumulated (
> in, out or combined) as you please.
>
> **Note that setting a tax category to None=0 the tax is assumed to be 0
and
> there will be no GLAcc entries for 0% of anything.
>
> Now The Questions
>
> How much did I spent for goods from outside EuropeanUnion (native 0% VAT)
?
>  * the answer lies in the purchased amount of items of this stock type as
it is
> known that it is external, therefore sales / purchaces of this item may be
> posted to that GL account using the Stock Categories not the Tax
Categories of
> cause the amounts in the GL acount will exclude the vat amounts therefore
it
> could be included using the transaction ID.
>
> How much VAT did I pay at the customs for these goods? (not food or books
16%)
>  * this problem may be solved by adding two more tax categories one set
for
> native and the other for non native using seperate GLAcc's you ignore the
0% as
> the 16% for non native GLAcc will in fact be import duties. Once again the
> stock item itself knows if it is natively aquired.
>
> How much did I spent for goods (bought at companies) from inside EU (0%
VAT)
>   * Determined by using Stock Categories not the Tax Categories quiry
respective
> GL Account.
>
> How much did I spend for goods from private German sellers (0% VAT)
>   * Same solution as previous.
>
> How much did I spent for goods (bought at German companies) (16% VAT)
>   * This one is slightly more tricky as you would like to exclude
purchases of
> 7% and 0% the solution here is to seperate items with different
TaxCategories
> into different StockCategories as well.
>
> It is probably better to introduce something like a taxcenter where a
stock item
> may be assigned a tax center either directly of through a tax category
this
> will leave the Stock Categories out of the equation.
>
> I hope all of this makes sence.
>
> Kind Regards
> Danie Brink
>
> Quoting Dirk Eversmann <dir...@gr...>:
>
> > Thank you for your great response!
> >
> > @Dick Stins:
> > "In the taxlevel you can enter the GL accountnumber per level.
> > For your turnover, you can enter per item an accountnumer. So you can
setup
> > turnover 0%, turnover 7%, turnover ... GL accounts."
> >
> > Yes, but it does not really help :-(
> >
> > @Danie:
> > "Could you send me a more thorough description as I am in the process of
> > customizing the Taxes to work more modular so I might as well look at
your
> > requirement and try to incorporate it."
> >
> > I will try again to make it clear:
> > I have to report in detail the VAT every month. VAT is the difference of
> > Tax I have payed while purchasing goods and the Tax I collected while
> > selling goods.
> > Cases:
> > I buy standard-goods (16%VAT) from a German distributor for EUR 116
> > GL-Costs16%=EUR 100 / GL-VAT-paid-16%=EUR 16
> >
> > I sell standard-goods (16%VAT) to a German customer for EUR 174
> > GL-Turnover16%=EUR 150 / GL-VAT-received-16%=EUR 24
> >
> > So I added EUR 50 value to the goods and have to pay EUR 16 VAT
> >
> > (food and books have 7%)
> >
> > No problem so far. The detailed report is the thing. My tax authority
wants
> > to know:
> > How much did I spent for goods from outside EuropeanUnion (native 0%
VAT)
> > How much VAT did I pay at the customs for these goods? (since I do not
sell
> > food or books 16%)
> >
> > How much did I spent for goods (bought at companies) from inside EU (0%
VAT)
> >
> > How much did I spend for goods from private German sellers (0% VAT)
> > How much did I spent for goods (bought at German companies) (16% VAT)
> >
> > And a few more cases may apply.... Basicly same thing for selling
> > goods......
> >
> > Problems with webERP arise in this situation:
> > I pay with Mastercard (creditor) a bill of a US-company (0%VAT) and a
bill
> > of a German-company (16%VAT)
> > I should have
> > 1 liability
> > 1 GL-cost-16%
> > 1 GL-cost-0%
> > 1 GL-paid-VAT-16%
> > entry
> >
> > My workaround is setting up 2 Mastercard creditors: one with 16%VAT and
one
> > with 0% VAT. This leads of course into two liabilities....
> >
> > Hope, I made my problems clear.
> >
> > Have a nice day, Dirk
> >
> >
> >
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