• From: Colombia
  • Registered: 12/29/2014
  • Posts: 627

Topic: Tax on free gift

Local tax laws require VAT to be charged on free gift - (either purchase price or normal sale price) and the invoice needs to reflect this.

Is this possible with frontaccounting? If so then how?

Example:-

Item (Normally a non-stock item) purchased for $10.00
VAT is 20%

The invoice will state:-

Item (free gift)            $ 0.00

VAT @ 20%                 $ 2.00

Total                           $ 2.00

Any help appreciated

The FrontAccounting Wiki(Manual, examples, tips, setup info, links to accounting sites, etc) https://frontaccounting.com/fawiki/
  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: Tax on free gift

Taxes are % of price and hence not directly possible.
Bill full value and apply adhoc discount after tax.

apmuthu's Website

3 Reply by poncho1234 (edited by poncho1234 08/11/2017 08:35:20 pm)

  • From: Colombia
  • Registered: 12/29/2014
  • Posts: 627

Re: Tax on free gift

Ok, but how do you do 'adhoc discount after tax'?

In another post I read that negative prices can be made for service items; so I created a service item with same name as free gift, but excluding tax.

This gives more or less the desired result on the invoice and accounts.

But still interested to look at your 'adhoc discount after tax'.

The FrontAccounting Wiki(Manual, examples, tips, setup info, links to accounting sites, etc) https://frontaccounting.com/fawiki/
  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: Tax on free gift

Providing a credit note may do it as will a negative shipping charge (without tax) but will get mixed up with the real shipping charges.

@joe: Can we extend FA to accommodate an AdHoc discount at the end of each invoice as an amount value?

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  • joe
  • Administrator
  • Offline
  • Registered: 03/15/2007
  • Posts: 5,085

Re: Tax on free gift

You can create a service item called Discount. Use each as uom. Create an item tax type with total tax exempt and put this on the item.
Then you can enter a Discount item with negative amount per item.
That's it.

Joe

  • From: Colombia
  • Registered: 12/29/2014
  • Posts: 627

Re: Tax on free gift

Thanks @Joe, that does it.

@apmuthu, for this case it would have to disregard taxes though.

The FrontAccounting Wiki(Manual, examples, tips, setup info, links to accounting sites, etc) https://frontaccounting.com/fawiki/
  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: Tax on free gift

Thanks @joe and @poncho1234. This info has been wiki-ed.

apmuthu's Website

  • From: Colombia
  • Registered: 12/29/2014
  • Posts: 627

Re: Tax on free gift

apmuthu wrote:

Thanks @joe and @poncho1234. This info has been wiki-ed.

Added a bit too...didn't realise we were able to edit the wiki??..!!

The FrontAccounting Wiki(Manual, examples, tips, setup info, links to accounting sites, etc) https://frontaccounting.com/fawiki/
  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: Tax on free gift

That's how the wiki has been built - great to have another diligent wiki contributor! smile

apmuthu's Website

  • From: Colombia
  • Registered: 12/29/2014
  • Posts: 627

Re: Tax on free gift

Perhaps it needs to be advertised more?

Maybe..

"This info has been wiki-ed.
(To edit the wiki yourself, simply log-on using your forum sign-in name & password and go to the page you wish to edit and click the edit button in the bottom left corner)

The FrontAccounting Wiki(Manual, examples, tips, setup info, links to accounting sites, etc) https://frontaccounting.com/fawiki/
  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: Tax on free gift

There is a Sticky Announcement: https://frontaccounting.com/punbb/viewtopic.php?id=922 but not as explicit as your statement.

@joe: remove old stickies and put in one with @poncho1234's suggestion there.

apmuthu's Website

12 Reply by poncho1234 (edited by poncho1234 08/15/2017 03:31:36 am)

  • From: Colombia
  • Registered: 12/29/2014
  • Posts: 627

Re: Tax on free gift

It is quite clear in https://frontaccounting.com/punbb/viewtopic.php?id=922 but I am embarrassed to say that's the first time I've read it... but I don't think I'm the only one?

I often see your 'This info has been wiki-ed.' at the end of a post, so thought you or any one else who edits the wiki could add on '(To edit the wiki yourself, simply log-on using your forum sign-in name & password and go to the page you wish to edit and click the edit button in the bottom left corner)' as some extra publicity for wiki editing? I think the stickies need to stay.. something's just need to be repeated.

Edit: Just completed my education...all stickies read

The FrontAccounting Wiki(Manual, examples, tips, setup info, links to accounting sites, etc) https://frontaccounting.com/fawiki/