Tax Code by Country (tcmcs0136s000)

Field Information

General

Country

tax country

Tax Code

tax code

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 Code 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.

• Tax Only Invoice - Claimed
• Tax Only Invoice - Not Claimed
• Tax on Separate Invoice

Defer Declaration of Tax Transactions

Defer Declaration of All Tax Transactions

If this check box is selected, declaration of all tax transactions with this tax code is deferred.

If this check box is selected, you can manually declare these deferred tax transactions. This is used in case of exports, where evidence of export is required before declaration of the tax transactions.

Note: 

• By default, this check box is cleared.
• This field is available even if the Tax Code is approved.

Defer Declaration of Sales Tax Transactions

If this check box is selected, declaration of sales tax transactions with this tax code is deferred.

Note: 

• This check box is enabled only if:
  • the Defer Declaration of All Tax Transactions check box is cleared.
  • the Tax Code Usage field is set to Sales or All.
• This field is available even if the Tax Code is approved.

Defer Declaration of Purchase Tax Transactions

If this check box is selected, declaration of purchase tax transactions with this tax code is deferred.

Note: 

• This check box is enabled only if:
  • the Defer Declaration of All Tax Transactions check box is cleared.
  • the Tax Code Usage field is set to Purchase or All.
• This field is available even if the Tax Code is approved.

Defer Declaration of Input Shifted Tax Transactions

If this check box is selected, declaration of Input Shifted tax transactions with this tax code is deferred.

Note: 

• This check box is enabled only if:
  • the Defer Declaration of All Tax Transactions check box is cleared.
  • the VAT Type field is set to Shifted.
• This field is available even if the Tax Code is approved.

Defer Declaration of Output Shifted Tax Transactions

If this check box is selected, declaration of Output Shifted tax transactions with this tax code are deferred.

Note: 

• This check box is enabled only if:
  • the Defer Declaration of All Tax Transactions check box is cleared.
  • the VAT Type field is set to Shifted.
• This field is available even if the Tax Code is approved.

Text

Specify text, which is printed 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 for the tax code and country.

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.