Purchase Class
Definition
In Peru, a classification of your purchases according to the value-added tax (VAT) status of their intended purpose (or purposes, if you intend to put the goods purchased to a number of different uses). This information is for the authorities’ reference only.
Use
There are four purchase classes (known in Spanish as clase de adquisición):
Class |
VAT status of intended purposes |
1 |
All subject to VAT or for export |
2 |
All VAT-exempt |
3 |
Mixed (some subject to VAT, some exempt) |
4 |
All VAT-exempt due to use in areas where tax incentives apply, for example, free zones |
A machine manufacturer purchases a quantity of screws, all of which it intends to use in the construction of its machines. Because the machines it sells are subject to VAT, it posts the purchase as class 1.
In the system, you distinguish between different purchase classes by defining and using different tax codes. For every percentage rate of input VAT, you define three different tax codes, one each for classes 1, 2, and 3. For all class 4 purchases, you define one zero-rate tax code.
When you create a company code using the template for Peru, the sample tax codes that the system sets up reflect the different purchase classes.
Integration
You post your purchases using different
tax codes for different purchase classes. For a list of your purchases and which classes they are assigned to, use the purchase ledger.