Investment Tax 

Investment tax is levied on certain goods in some countries, such as Norway. This tax is calculated on the amount of the incoming invoice and posted in addition to input tax. The tax amount is to be posted as a payable to the tax office. In contrast to the input tax amount, the investment tax must therefore be posted on the opposite side (generally the credit side) of the account. To enable the system to make this posting, you define a +/- sign change for the second tax posting to distinguish it from the posting for the input tax.

The expense arising from the investment tax is generally divided equally between the G/L account and asset line items. If you wish, you can also have the system post the expense to a separate expense account.

The percentage rates of taxes vary from country to country. You determine them when defining the tax code. A percentage rate for input tax and a percentage rate for investment tax are to be specified under the same tax code.

The input tax is determined as a percentage of the base amount, meaning that the tax amount is included in the invoice amount. See also Example: Posting Investment Tax