Code, Name

Enter the tax group code and name.

Category

Click  and choose either Output Tax or Input Tax.

·         Output Tax – tax groups for A/R documents.

·         Input Tax – tax groups for A/P documents.

EU

Select this checkbox if the tax group is used for transactions with other European Union countries (relevant only for Output Tax groups).

Triangular Deal, Goods Shipment

Click   and choose the number of the triangular deal or goods shipment. Meaning, if you choose a value in the Goods Shipment field, the Triangular Deal field will be blocked and vice versa.

To define a new triangular deal or goods shipment, choose the option Define New, and the Triangular Deal - Definitions/ Goods Shipment – Setup window will appear.

Acquisition/Reverse

This column is relevant only for Input Tax groups (A/P). Select this checkbox to determine that the tax group is related to Acquisition/Reverse.

The acquisition tax is a procedure used when you record goods purchased from EU countries. In this case, tax is not calculated in the document but an appropriate amount is recorded in the journal entry and affects the tax report. In this case, the tax amount in the rows and in the total of the A/P Invoice will be 0.

The unique structure of journal entry that involves acquisition tax, is supported only by the creation of purchasing documents such as A/P Invoice or A/P Down Payment Invoice. Acquisition tax codes are not available for selection in manual journal entry.

Effective from, Rate

The date and rate displayed in these columns represent the date from which a tax group rate (%) is effective. Since the tax percentage may change from time to time, you can enter additional entries by double clicking on the tax group row number. The Tax Definition window will then appear. You can enter new rates and the date from which the rate will be affective.

The tax amounts in the documents are calculated according to the tax group's effective date.

Non Deduct. %

Relevant only for Input tax groups (A/P). This is the rate of tax that paid but not allowed as a deduction. The calculation of the non-deductible amount is done based on the tax amount.

Rate of input tax group: 16%

Rate of non-deductible: 4%.

When creating an A/P invoice for total amount of 100, the amount of total tax is 16 from which 0.64 (=4%*16) is the non-deductible amount and 15.36 is deductible.

When using tax group that was defined as non-deductible, the total amount of tax is divided between the tax account and the non-deductible tax account.

You cannot define Acquisition/Reverse and None Deductible for the same tax group. Meaning, if you define the tax group as Acquisition/Reverse, the Non Deduct.% field will be blocked and vice versa.

Non Deduct. Acct

Enter the account to which you want to post the non deductible tax amounts.

Tax Account

Choose a G/L account to be used in journal entries containing this tax group.

Acquisition Tax 

Choose a G/L account to be used in journal entries containing acquisition tax.

Group Description

Use this informative field to enter values, which could be used later as parameters in user queries.

Field

Description/Activity

Equalization Tax %

Define in this field the equalization tax percent for each relevant tax group.

Field

Description/Activity

Correction

Select this checkbox to define a tax group as a correction tax group in the system.

VAT Correction

From the dropdown box, select the tax group you want to assign as the correction tax group for the current tax group. The tax group appear in this dropdown box are only the ones selected as correction tax.