The country in which the tax must be paid or reported. The tax country can be different from the country where the goods are issued or delivered.
Tax Codes by Country (tcmcs0136s000)Use this session to maintain the tax-code details of a specific country. If the tax code in the current country represents a multiple tax, you must clear the Singular Tax check box. You can define the ledger accounts for the various types of tax amounts in the following sessions in the General Ledger module in Financials:
Before the application can link a tax code to transactions, you must select the Approved check box. If you have set up and tested a tax code, you can approve the tax code. The application performs a consistency check on the tax code details. After you approve the tax code, you can no longer change the following fields:
General Country The country in which the tax must be paid or reported. The tax country can be different from the country where the goods are issued or delivered. Tax Code A code that identifies the tax rate and which determines how LN calculates and registers tax amounts. Approved If this check box is selected, the tax code has been approved and evaluated and can be linked to transactions. If you have tested the tax code, you can select this check box. Note If this check box is selected, you can no longer change some of the tax code details. General Description A description of the tax code. The description helps you to recognize the tax code on orders and invoices. Tax Code for No Tax If this check box is selected, the tax code is the tax code used for non-taxable transactions. Note For taxable transactions with a zero tax rate, you must set up regular tax codes with zero rates. Group Tax If this check box is selected, the tax code is a group tax code. Kind of Tax The kind of tax for which the tax code is defined. You can only select Stamp Tax if you selected the Trade Notes check box in the CMG Parameters (tfcmg0100s000) session. If you select Stamp Tax, the application sets a number of fields of this session to a default value that you cannot change. Tax Type Indicates when the tax obligation arises. Singular Tax Select this check box if the tax code refers to a single tax percentage. As a result, one tax amount is calculated on the basis of one percentage and posted to one tax ledger account in the Financials package. You can define the ledger accounts and dimensions for singular tax codes in the Tax Codes by Country (tcmcs0136s000) details session. Clear this check box if the tax code refers to a multiple tax-percentage. You can define several lines that together constitute the total tax amount. The application can post each tax line posted to a separate tax ledger-account in Financials. You can define the ledger accounts and dimensions for multiple tax codes in the Multiple Tax Code Lines (tcmcs0135s000) details session. Settings Amounts Entered in Financials The way in which you enter amounts with this tax code in Financials. Tax Authority The tax authority to which the tax represented by this line must be reported. Expense Purchase Tax To apply expense purchase tax to transactions that use this tax code, select this check box. If this check box is selected, the tax amounts on the purchase invoice are considered as costs. To post the tax amounts for purchase transactions with this tax code to the Purchase Tax specified in the Posting Data for Tax Codes (tfgld0171s000) session, clear this check box. Rounding Method Indicates how tax amounts are rounded. In some countries tax amounts must always be rounded up. Tax Calculation Date LN applies the tax rates that are valid on this date to calculate the tax amounts. To calculate the tax on sales orders and purchase orders, the application always uses the tax rates of the order date. When you create the invoices in Invoicing, the application can use the tax rates of the Order Date or the Invoice Date. Tax Scenario To create separate tax invoices or tax only invoices, specify the appropriate option.
Text If this check box is selected, a text is present. The application prints the text on invoices and purchase order acknowledgements with this tax code. For example, for special tax rates and tax exemptions, you can use this text for references to the applicable tax law chapter. You can also specify a text that must be printed on net and tax-only invoices. Tax Data VAT Book Include In VAT Book If this check box is selected, the application includes transactions with this tax code in VAT book reports. Tax Article The section of the law related to the tax code. For some kinds of tax included in the VAT book, you must print the section of the law related to the taxation on the tax report or the tax declaration. You can define the tax article as reason codes in the Reasons (tcmcs0105m000) session. If you select the Include In VAT Book check box, you can enter a value in this field. Pay Tax Pay Tax The moment at which you must pay the withholding tax and social contributions to the tax authorities. If the tax is payable at invoice payment, you must enter the collection office to which you pay the withholding tax and social contributions and the tax settlement tax code. The application does not include tax codes for which you select At Invoice Payment when you generate a tax declaration. When you pay a purchase invoice with such a tax code, the application automatically pays the tax to the collection office. Withholding Tax Tax Category The tax category. If the Kind of Tax is withholding income tax or social contributions, you can select a tax category. Note In one country, all the tax codes of a tax category must have the same, or none, tax base value formula. Tax Base Value Formula The tax base value formula. If this field is empty, the application bases the tax calculations on the net purchase order amount or the net purchase invoice amount. If the Kind of Tax is withholding income tax or social contributions, you can select a formula. Note In one country, tax codes of the same kind of tax and the same tax category, or an empty Tax Category field, must have the same tax base value formula. Collection Office The collection office to which you pay the withholding tax and social contributions. Settlement Tax Code The tax settlement tax code for withholding tax and social contributions.
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