Tax calculation

LN calculates tax on the following types of transactions, among others:

• Sales invoices
• Purchase invoices
• Service invoices
• Project invoices
• Interest invoices
• Advance payments
• Settled discounts
• Journal vouchers

Whether LN calculates tax on advance payments depends on the USt für geleistete/erhaltene Anzahlungen berechnen parameter in the Parameter Zahlungswesen (tfcmg0100s000) session.

The way in which LN handles tax on deductions is explained in To adjust tax for deductions.

Level of tax calculation

Usually, tax must be calculated for the individual transaction lines.

For manually entered purchase invoices, you can select the Ebene für USt-Berechnung in the following sessions:

• Parameter Kreditorenbuchhaltung (tfacp0100m000), the default value.
• Eingangsrechnung - Eingabe (tfacp2600m000), for each transaction.

The level of tax calculation can be:

• Rechnungskopf
• Buchungsposition

For purchase invoices to which only one tax code applies, you can calculate the tax at invoice header level. If several tax codes and/or tax types apply, you must calculate the tax by transaction line.

As a rule, you create manual sales invoices in Fakturierung and LN calculates the tax for each transaction line. However, for sales invoices that you create manually in the Debitorenbuchhaltung module, you can select the Ebene für USt-Berechnung or use the default value you selected in the ACR-Parameter (tfacr0100s000) session.

Maximum tax amount

If a maximum tax amount applies for a specific tax code, you can specify the amount in the Einstufige Steuersätze (tcmcs0132m000) and the Mehrstufige Steuersätze (tcmcs0133m000) sessions.

If the calculated tax amount exceeds the maximum tax amount, LN replaces the calculated tax amount with the maximum tax amount. For an example, refer to Example of maximum tax amount.

Tax on advance payments

In some countries tax is charged on advance payments/receipts, which exceed a certain minimum amount. If you want to charge tax on advance payments/receipts, you must select the USt für geleistete/erhaltene Anzahlungen berechnen check box in the Parameter Zahlungswesen (tfcmg0100s000) session. You must also enter the minimum amount in the Mindestbetrag für USt-Berechnung field of the Parameter Zahlungswesen (tfcmg0100s000) session.

If an advance payment is made or received, you can specify a tax amount for the following types of transactions:

• Bank transactions
• Anticipated payments
• Anticipated receipts
• Standing orders of the Anzahlung type

LN enters the singular tax amount on the Konto für USt auf geleistete Anzahlungen ledger account and the Konto für USt auf erhaltene Anzahlungen ledger account. You can define these ledger accounts in the Kaufmännische Daten USt-Codes (tfgld0171s000) session.

LN enters the multiple tax amount on the Konto für USt auf geleistete Anzahlungen ledger account and the Konto für USt auf erhaltene Anzahlungen ledger account. You can define these ledger accounts in the Kaufmännische Daten für mehrstufige USt-Code-Positionen (tfgld0170s000) session.

Tax on sales invoices

Tax on sales invoices, which are created in the Ausgangsrechnungen (tfacr1110s000) session, can be calculated at two levels:

• Invoice header level
• Transaction line level

You can use the tax at invoice header level, if only one tax type applies to the invoice. If there are several tax types, you must define the tax by transaction line.

You can define the level of tax calculation for each invoice in the Ebene für USt-Berechnung field of the Ausgangsrechnungen (tfacr1110s000) session. You can define the default value in the Parameter Kreditorenbuchhaltung (tfacp0100m000) session.

If you select tax calculation at invoice header level in the Ausgangsrechnungen (tfacr1110s000) session, you can enter:

• Tax country
• Tax code
• Tax amount

LN calculates a default tax amount that is based on the total invoice amount, the tax country, the tax code, and the invoice's document date. If you do not enter a tax code, the tax amount automatically becomes zero and cannot be changed.

If you select tax calculation at transaction line level in the Ausgangsrechnungen (tfacr1110s000) session, you must enter a tax country at invoice header level. However, you cannot enter a tax code or a tax amount. You must enter a tax code and a tax amount separately for each transaction line in the Buchungen (tfgld1102m300) session. LN calculates the total tax amount for the invoice based on the separate tax amounts that are entered for the transaction lines. After entering the transactions, you can view the total tax amount in the USt-Betrag in Zahlungswährung field of the Ausgangsrechnungen (tfacr1110s000) session.

The default tax amount is calculated based on:

• Invoice amount (this amount can be net or gross, depending on the value of the Im Paket Finanzwesen erfasste Beträge field in the Steuercode nach Land (tcmcs0136s000) session.
• Tax country
• Tax code
• Document date

In the Daten Umsatzsteuer (tfgld1109m000) session, you can specify the tax amounts. If singular tax is used, only one line is shown. If multiple tax is used, you can specify the tax amounts for each transaction line.

Shifted tax

Shifted tax is not included in the total tax amount. The shifted tax amount is posted to a tax account. Simultaneously, a reverse entry is generated on a tax contra-account. In the tax analysis the amount is included twice:

• As an entry on the tax account.
• As a reverse entry on the tax contra-account.

Shifted tax is used in The Netherlands in relation to legislation concerning the responsibility for payment of taxes and social security contributions (invoices from subcontractors to the main contractor). Shifted tax can be used in the European Union for purchase invoices from other EU countries. Such invoices do not state tax, but when posting the invoices you must calculate a fictitious tax amount (against the national tax rate), which is included on the tax report as chargeable and payable.

Tax on purchase invoices

Tax on purchase invoices, which are created in the Eingangsrechnung - Eingabe (tfacp2600m000) session, can be calculated at two levels:

• Invoice header level
• Transaction line level

You can use the tax at invoice header level, if only one tax type applies to the invoice. If several tax types apply, you must define the tax by transaction line.

You can define the tax-calculation level by using the Ebene für USt-Berechnung field in the Eingangsrechnung - Eingabe (tfacp2600m000) session. The default value of this field depends on the parameter settings for the Kreditorenbuchhaltung module.

If the tax calculation level is at invoice-header level, you can enter a tax code and a tax amount in the Eingangsrechnung - Eingabe (tfacp2600m000) session. LN enters a default tax amount that is based on:

• Gross invoice amount
• Tax country
• Tax code
• The invoice's document date

The incorrect default tax amount appears if:

• The tax code entered is a multiple or singular tax, and
• A rate for excess amounts has been defined in the Einstufige Steuersätze (tcmcs0132m000) session. The amount entered in the Betrag field is always gross amount, including the tax. Tax is filtered from this amount based on the tax rates and is displayed by default in the USt-Betrag in Zahlungswährung field. This amount can be changed if desired.

If you do not enter a tax code, the tax amount automatically becomes zero and cannot be changed.

You must enter the tax code and the tax amount by transaction line in one of the following sessions:

• The Buchungen (tfgld1102m300) session, if a cost invoice is concerned.
• The USt-Buchungen (tfacp1112m000) session, if an invoice that is related to orders is concerned. This session can only be activated if the invoice is related to orders and the level of tax calculation is equal to transaction line level.

After you exit one of these sessions, LN calculates the total tax amount, which is displayed in the Eingangsrechnung - Eingabe (tfacp2600m000) session.

Tax on settled discounts

In some countries the charged tax is settled, for example, when a cash discount is deducted from an invoice. If you select the USt für Skonto/Zahlungsdifferenz korrigieren check box in the Parameter Zahlungswesen (tfcmg0100s000) session, the tax amount for anticipated payments is adjusted in case of:

• A discount
• A late payment
• Payment differences

You can define the step at which settlement must take place in case of anticipated payments in the Buchungsdaten nach Bank/Zahlungsverfahren (tfcmg0146s000) session.