Tax Code by Country (tcmcs0636m000)

Field Information

Country

The tax country.

Tax Code

The tax code.

Tax Authority

The tax authority.

Tax Rate

The tax rate.

Approved

If this check box is selected, LN uses the tax codes to calculate and report tax amounts for transactions that have the group tax code.

To approve a group tax code, select the tax code and on the appropriate menu, click Approve.

Text

If this check box is selected, a text is present.

LN 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.

Tax Code for No Tax

If this check box is selected, the tax code used for transactions that are not taxable.

Note: You must select a tax code. You cannot create transactions with an empty or blank Tax Code field.

Aggregate Tax

If this check box is selected, the tax code is an aggregate tax code.

Note: You can set the value of the VAT Type to either Normal, Shifted or On Payments for an aggregate tax code.

Group Tax

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

Note: This field is disabled if the Tax Code Usage field is set to Sales.

Singular Tax

If this check box is selected, the tax code refers to a single tax percentage. One tax amount is calculated on the basis of one percentage and posted to one Tax ledger account in the Financials package.

Indirect Tax

If this check box is selected, the tax code is an indirect tax code.

Note: This field is enabled for all kind of tax other than Stamp Tax, Exclude from Withholding, and Tax Settlement.

Type of Indirect Tax

The indirect tax type. Indirect taxes are the taxes that are levied on goods and services.

Tax Scenario

To create separate tax invoices or tax only invoices, specify the appropriate option.

Allowed values

Tax Only Invoice - Claimed

Select this option for transactions involving goods that are free of charge, and for which only the tax amount can be claimed. The customer invoice will then only reflect the tax amount.

Tax Only Invoice - Not Claimed

Select this option for transactions involving goods that are free of charge, and for which the tax amount cannot be claimed. Depending on the Free of Charge setting in the Invoicing Parameters (cisli0100m000) session, there will be no invoice at all, or a zero value invoice.

Tax on Separate Invoice

Select this option to create separate invoices for net and tax amounts.

An order line with the Tax on Separate Invoice option allows you to specify tax invoice data. In the Billable Lines (cisli8110m000) session, on the appropriate menu, select the Tax Invoice Data command to start the Billable Line Satellites (cisli8112m000) session. In this session, you can specify the tax currency and the currency rates to convert the tax base amount in order currency to the tax base amount in tax currency.

When invoicing the billable line, this will result in two invoices - a net invoice and a tax only invoice. The tax invoice will be created based on the data specified in Tax Invoice Data.

Not Applicable

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.

Note: 

• If the Tax Code Usage field is set to Purchase, the value in this field cannot be set to Stamp Tax.
• If the Tax Code Usage field is set to Sales, the value in this field cannot be set to set to Withholding Social Contribution, Withholding Income Tax or Social Contribution (Company Expense).

Tax Type

The Tax Type

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.

Expense Purchase Tax

If this check box is selected, you can apply expense purchase tax to transactions that use this tax code.

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.

Rounding Method

Select the rounding method that is applied to the decimals that exceed the number of decimals specified for the numeric format.

Allowed values

Down

Decimal values are rounded down to the preceding integer value.

Normal

Decimal values ending on five and lower are rounded down, other values are rounded up.

Up

Decimal values are rounded up to the next higher integer value.

Include In VAT Book

If this check box is selected, LN 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.

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, LN 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.