VAT code

Rate, Basis account and Inv. tax account is fetched from the Inv. tax table.

When selected, the Turnover class will be set to Non taxable. VAT amount will not be calculated for the general ledger transactions and capital asset transactions that are produced when updating vouchers. Nor will the transactions be included in the VAT reports. The Non VAT-reportable check box in the VAT code processing field will be selected.

1 - Services

This is significant for foreign associates, i.e. associates with Trade area in the range 2 - 5. The value in the Cost % field is taken into account when calculating VAT.

2 - OSS union service scheme

3 - OSS union goods scheme

4 - OSS import scheme

On vouchers with general ledger entries for sales and purchases that are generated on the basis of orders, the turnover class is defined on the basis of the Transaction type, Trade area and Service type fields.

1 - Taxable sales

Is used for sales of taxable products. I.e. when

• the Transaction type is 1 - Sales or 2 - Hire
• the Trade area is 0 - Taxable domestic according to VAT- and accounting inf./VAT code

2 - Non-taxable domestic sales

Is used for sales of non-taxable products. I.e. when

• the Transaction type is 1 - Sales or 2 - Hire
• the Trade area is 1 - Non-taxable domestic

10 - Transfer of goods to EU countries

Used when

• the Transaction type is 1 - Sales or 2 - Hire
• the Trade area is 4 - Subsidiary in another EU country
• Service type1 - Services is not selected

5 - Sale of goods to EU countries

Used when

• the Transaction type is 1 - Sales or 2 - Hire
• the Trade area is 2 - Within other EU country
• Service type1 - Services is not selected

3 - Sale of goods outside EU/Abroad

Used when

• the Transaction type is 1 - Sales or 2 - Hire
• the Trade area is 3 - Outside EU/Abroad
• Service type1 - Services is not selected

9 - Sale of services abroad

Used when

• the Transaction type is 1 - Sales or 2 - Hire
• the Trade area is 2 - Within other EU country, 3 - Outside EU/Abroad or 4 - Subsidiary in another EU country
• Service type1 - Services is selected

13 - Non-taxable sales

16 - Sales outside tax area

18 - Sales, taxable for purchaser

20 - Agent sales to third party

22 - Sales of services to EU countries

26 - Rent income voluntary

27 - OSS union scheme services

28 - OSS union scheme goods

29 - OSS import scheme

4 - Taxable purchases

Is used for purchases of taxable products. I.e. when

• the Transaction type is 6 - Purchase
• the Trade area is 0 - Taxable domestic according to VAT- and accounting inf./VAT code

7 - Non-taxable domestic purchases

Is used for purchases of non-taxable products. I.e. when

• the Transaction type is 6 - Purchase
• the Trade area is 1 - Non-taxable domestic

15 - Domestic purchases with reversed VAT deduction

11 - Transfer of goods between other EU countries

Used when

• the Transaction type is 6 - Purchase
• the Trade area is 5 - Transfer between other EU countries
• Service type1 - Services is not selected

6 - Purchase of goods from EU countries

Used when

• the Transaction type is 6 - Purchase
• the Trade area is 2 - Within other EU country
• Service type1 - Services is not selected

8 - Purchase of goods outside EU/Abroad

Used when

• the Transaction type is 6 - Purchase
• the Trade area is 3 - Outside EU/Abroad
• Service type1 - Services is not selected

12 - Purchase of services abroad

Used when

• the Transaction type is 6 - Purchase
• the Trade area is 2 - Within other EU country or 5 - Transfer between other EU countries
• Service type1 - Services is selected

14 - Non-taxable purchases

17 - Purchase outside tax area

19 - Purchase, taxable by purchaser

21 - Purchase of services from EU countries

23 - Domestic purchase of services

24 - Taxable product consumption

25 - Domestic purchases with reversed VAT liability

In the Order table this is suggested on the basis of what is entered for the customer/supplier. If this field is empty the tax codes in the VAT- and accounting information table are used.

Non VAT-reportable

The Turnover class will be set to Non taxable, and VAT amount will not be calculated for general ledger and capital asset transactions, which will be produced when you update vouchers. Nor will the transactions be included in the VAT reports.

Do not calculate VAT amount

The Turnover class will be set to Non taxable, and VAT amount will not be calculated for general ledger and capital asset transactions, which will be produced when you update vouchers. The transaction will however be assigned VAT rate.

Exclude from Master Data Management

Agriculture

VAT compensation

You can also use this field as a parameter in VAT reports. It is also possible to display turnover per. VAT no.

1 - High

2 - Medium

3 - Low

4 - Zero

5 - Exempt

Withholding tax is levied in some countries where customers pay part of VAT directly to the state.