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Taxes - Vat/Gst tax and Sales tax |
  
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Taxes - Vat/Gst tax and Sales tax |
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Vat/Gst tax
Vat/Gst tax is calculated based on the rate derived from the combination of the Customer VatCode and the Product VatCode as defined in the VatMap table. It is applied on a line item basis.
This supports countries such as the United Kingdom and New Zealand that have multiple Vat/Gst rates as well as countries such as Canada that have only one non-zero rate. This also supports using harmonized Gst and SalesTax rates for Canada, which has Gst at the national level together with SalesTax that varies by Province.
Since VatCodes for Customers and Products can differ, the applicable VatCode and VatRate for different combinations can also differ. The applicable rate is determined from the VatMap table maintained within the Vat maintenance task.
Sales tax
Sales tax is calculated based on the rate defined for the SalesTax Code for the Sales Order being applied to sales of taxable Products.
The current SalesTax Code for the Sales Order is shown on the form. Initially this is inherited from the SalesTax Code field in the ShipTo record. It can be changed as applicable.
A SalesTax Code of ‘n/a’ means SalesTax is not applicable.
The IsTaxable field in the detail record determines the Product’s taxable status. This is inherited from the IsTaxable field in the Product record. You can change it as applicable. Checked means Taxable. Unchecked means not Taxable.