Unique Tax Certificates Exempt Tax Codes (lpita2130m000)

Field Information

Tax Country

The code of the tax country for which the unique tax certificates exempt tax codes must be defined.

Tax Code

The tax code that is used for the specified country and business partner.

Tax Code Usage

The type of transaction for which the tax code is used.

Allowed values

Sales

Not Applicable

Purchase

All

Kind of Tax

The type of tax for which the tax code is defined.

Allowed values

VAT

Regular value added tax (VAT) on sales and purchases.

Note: For tax registration setup, this kind of tax also represents sales tax.

Stamp Tax

A kind of tax on trade notes.

Withholding Income Tax

Withholding tax that you must withhold from your suppliers' purchase invoices and pay directly to the collection office.

Withholding Social Contribution

Withholding social contributions on purchase invoices that you must withhold from your suppliers' purchase invoices and pay directly to the collection office.

Social Contribution (Company Expense)

Social contributions (expense) that you can post as costs.

Exclude from Withholding

You can link tax codes of this kind of tax to purchase transactions that are not subject to withholding tax, but that you must report to the collection office for withholding tax and social contributions.

Tax Settlement

On the tax analysis reports, tax payments to the collection office are represented by this kind of tax code.

Not Applicable

None of the previous types apply. For example, for a group tax code the kind of tax is Not Applicable.

Tax Type

The type of tax for which the obligation arises.

Allowed values

Normal

The tax obligation arises at invoice creation. LN adds the tax amount to the net amount, which results in the gross amount on invoices. Furthermore, LN directly includes the chargeable or payable tax amount in the tax analysis in Financials .

Shifted

LN does not add the tax amount to the net amount, but posts it to the Purchase Tax account or the Sales Tax account. Simultaneously, LN generates a reverse entry on the Shifted Purchase Tax account or the Shifted Sales Tax contra-account in Financials . You define these accounts in the tax code posting data sessions.

In the tax analysis, the tax amount is included twice: once as an entry on the tax account, and once as a reverse entry on the shifted tax account.

On Payments

The tax obligation arises when the invoice is paid. This tax is paid in the same way as normal tax, but only becomes reclaimable or payable after the invoice has been paid. The tax is posted to an interim account and will only be transferred to the real tax account when the invoice is paid. If this type of tax is used in another type of transaction, the tax amount is directly posted to the tax account.

Group Tax

If this check box is selected, the tax code is a group tax code.

Exemption Code

The tax exemption code applicable for the tax country.