Setup SalesTaxGroup with more than 1 SalesTaxCode

(0) Share

Report

Posted on by VJ VM

122

Hi! I am trying to set up a SalesTaxGroup called DVAT which is short for Domestic VAT for our local customers and vendors. However, we have 2 percentages of VAT, one is 10% and the other is 5% depending on the product/service.

I set up 2 sales tax codes for the 10% and 5% and added them to DVAT.

However, we want to be able to select the applicable VAT percentage.

Say, for example, we are entering an expense in Invoice Journal and the amount is 100 USD inclusive of VAT. The applicable VAT is only 5% for the said invoice. But in the current setup the system calculates both 5% and 10%. So how can I select individual percentages based on the transaction?

Otherwise I have to create a new SalesTaxGroup and that would defeat the purpose of the Tax Group option.

Appreciate your support!

Note: I selected the salestaxcode option and selected 5%, however my understanding is that using the salestaxcode will cause the entire amount (100$ in this case) to be treated as VAT and that isn't what we want.

I have the same question (0)

All responses (10)

Answers (1)

Sort by

BillurSamdancioglu 21,121 Most Valuable Professional on at

Like (0)

Report
Copy link

Link copied!

Hi,

You need to setup the item tax group if depends on the expense.

Was this reply helpful? Yes No
VJ VM 122 on at

Like (0)

Report
Copy link

Link copied!

Thanks for your reply. I forgot to mention this. Both salestax codes have been added to Item Sales Tax Group as well. I am still not able to select the required percentage.

Was this reply helpful? Yes No
BillurSamdancioglu 21,121 Most Valuable Professional on at

Like (0)

Report
Copy link

Link copied!

Hi,

Actually there is no other workaround. This is OOB solution.

Maybe user user can go for a sales tax adjustment and place calculated value to zero.

But in this case, it will still create a VAAT transaction with a value of zero tax.

You can check if this process can work with this case and reporting purposes.

Was this reply helpful? Yes No
VJ VM 122 on at

Like (0)

Report
Copy link

Link copied!

Hi. I wonder then what would be the point of having sales tax groups and sales tax codes and the functionality of adding multiple sales tax codes to the same sales tax group. If this is the scenario, I'd have to use a different sales tax group for each percentage of the VAT and that defeats the purpose of having a sales tax group in the first place right?

Was this reply helpful? Yes No
BillurSamdancioglu 21,121 Most Valuable Professional on at

Like (0)

Report
Copy link

Link copied!

Hi,

It is to enable us to be able to calculate one or more vat codes within the transactions and to be able to setup different variants of rules within.

Was this reply helpful? Yes No
VJ VM 122 on at

Like (0)

Report
Copy link

Link copied!

Hi,

But this is exactly what I need at this point. We want to calculate a particular VAT code (5%) for a particular transaction using the salestaxgroup and itemsalestaxcode. But both of them also contain the VAT code for 10%. So how do I make only the 5% apply in this transaction?

Was this reply helpful? Yes No
Verified answer

Ramit Paul 22,809 Most Valuable Professional on at

Like (0)

Report
Copy link

Link copied!

Hi,

Can't you create two separate item sales tax group and adding code into one of each.

Whole doing transaction, you can select which one to select and based on that the code will give you the %?

You can do this by creating two sales tax group as well.

Was this reply helpful? Yes No
VJ VM 122 on at

Like (0)

Report
Copy link

Link copied!

Hi. Yes, As I said in my original post, I can do this. But then I would have to update all the items and keep switching them in case of other item transactions like sales, purchases. To reduce error, we kept only 1 salestaxgroup and itemsalestaxgroup each, adding multiple salestaxcodes to each. I am just trying to find an intuitive way for selecting the appropriate VAT percentage.

Was this reply helpful? Yes No
Suggested answer

Sten Baumgarten 12 on at

Like (0)

Report
Copy link

Link copied!

Hi

If you want both sales tax codes in the Sales tax group DVAT you must create 2 item sales tax groups: one that contain the 10% sales tax code and one that contain the 5% sales tax code.

When you enter the expense journal for said invoice you select sales tax group DVAT and item sales tax group with 5% on the expense journal line

Best regards

Sten

Was this reply helpful? Yes No
VJ VM 122 on at

Like (0)

Report
Copy link

Link copied!

Thanks all for your support.

Was this reply helpful? Yes No