Ebusiness Tax Multiple VAT% for same country
Hi Folks,
We have a requirement as follow.
we will maintain VAT @ country level (we are maintaing 4 countries, each country as one OU, LE)
We need to calculate tax as follow:
Supplier "X"
Line -1 VAT @ 25%
Line -2 VAT@10%
Line-3 VAT@0%
Note:- these taxes are recoverable, could some one answe me following questions.
1. How many Regimes we need to define for each country?
2. How we can define rule multiple Taxes for the same supplier?
3. How system will calculate Recoverables Tax
4. what are the accounts we need give while doing Tax accounts setuup?
How we can define tax setup.
Hi ,
Thanks for your reply,
Hi ,
Thanks for your reply, here i have one more question, how we can use our operating unit as Configuraton owner.
Could please specify the setup steps for this process.
1. How many Regimes we need
1. How many Regimes we need to define for each country?
Ans: If all the taxes are governed by a single tax department then you should have one regime with three different taxes for each country.
Tax regime = no of tax types/country
2. How we can define rule multiple Taxes for the same supplier?
Ans: If the same sets of taxes are applied to all suppliers then where is the issue?
3. How system will calculate Recoverable Tax
Ans: You have to define a recoverable tax and as per the rate defined in that system‘ll calculate recoverable amount
4. What are the accounts we need give while doing Tax accounts setup?
Ans: Only Tax accounts .i.e. the account which‘ll hit when tax is calculated
For ex in AR, when a transaction is created
Receivable Dr
Revenue Cr
Freight Cr
TAX cr
You can use either OU or LE
You can use either OU or LE as the configuartion owner.
When you define regime, in the party name you get two type options
i. First Party Legal Entity
ii. Operating Unit owning Tax Content
select the Operating Unit owning Tax Content to make OU as the confi owner.
The business requirement you have mentioned is not tough to configure. plz follow the below steps and let me know if you have any doubt
1. Create a regime with OU as config owner
2. Define 3 diff taxes... (you can define a single tax and 3 statuses provided all of them would fetch same tax recovery but then also you would be required to put some tax rules..so to make life easy create 3 diff taxes)
Line -1 VAT @ 25%
Line -2 VAT@10%
Line-3 VAT@0%
Attach the default tax reco defined in step 3
3. Create 1 diff Tax recos for each tax
4. Define tax juridictions
5. Define one status for each tax
6. Define one tax rate for each tax status of 25% , 10% and 0%
7. Enable all the default rules
Its done. Now create an AP invoice and check if it works