SA Value Added Tax Setup - General field descriptions

Fields are presented in alphabetical order within each section.

VAT Settings

Description

Specify the description of the jurisdiction you are setting up for VAT.

EC Sales

Select this option if this jurisdiction is in a country that is part of the European Community (EC), now the European Union (EU), and is required to report sales to other EC member states. For each customer and vendor in this jurisdiction, you must have previously defined the Country and VAT Registration # in Customer Setup, Customer Ship To Setup, and Vendor Setup. The VAT Registration # must be defined for each of your customers and vendors that reside in EU member countries and states.

Tax ID

Specify your tax identification number assigned for use within the selected jurisdiction.

VAT Rates

Specify the VAT rates for each Tax Code that pertains to this jurisdiction. The current rate is published by the country levying the tax. These are the VAT rates that are used when calculating taxes on sales orders and AP invoices. Rates are applied to all qualifying orders and AP invoices created after you update this record. If you receive a VAT rate change notice, you must update SA Value Added Tax Setup on the appropriate date.

Exempt

Specific goods and services are exempt from VAT, which means they are non-taxable and can only be made taxable by government legislation.

Lower [Reduced]

Specific goods and services are taxed at a rate that is reduced compared to the Standard rate.

Standard

The standard VAT rate levied on specific goods and services by the country.

Zero

Specific goods and services that are zero-rated for VAT do not incur VAT but are treated as a taxable product in all other respects.

VAT Accounts

AR Accrual Basis

This field is accessible only if Accural is selected in the Tax Analysis field in SA Company Setup-Taxes. Specify the General Ledger account code to be used to post VAT liabilities calculated on customer sales in this jurisdiction.

AR Cash Basis

This field is accessible only if Cash is selected in the Tax Analysis field in SA Company Setup-Taxes. Specify the General Ledger account code to be used to post VAT liabilities calculated on customer sales in this jurisdiction.