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Hi Elax,

I don't know what i have done to my tax setup. The current structure is as follows.

In the tax types, i have the following setup

VAT@1%              1.0             2150 Sales Tax @1%     2145 Purchase Tax @1%        
VAT@5%              5.0             2151 Sales Tax @5%     2146 Purchase Tax @5%        
VAT@13.5%     13.5     2152 Sales Tax @13.5%     2147 Purchase Tax @13.5%

In Tax Groups

Sales Tax@1%  (VAT@1%  is selected, others are unchecked)  - - This is meant for all sales invoice @ 1%   
Tax Exempt     (all are unchecked)   
Purchase Tax     (all three selected i.e, 1%, 5% & 13.5%)     -- For Suppliers

In Item Tax Types

VAT@1%             (VAT@1%  is exempted, others are selected)
VAT@5%             (VAT@5%  is exempted, others are selected)
VAT@13.5%     (VAT@13.5%  is exempted, others are selected)

I have created a supplier and assigned him to Purchase Tax Group.
I have created a customer and assigned him to Sales Tax@1%
I have created 3 items assigned them 3 tax types like 1%, 5% & 13.5% respectively.

While purchasing the above 3 items from the supplier, taxes are coming nicely in the purchase invoice for corresponding items. However my problem is that, when i sale the items, in the Sales Invoice (where taxes for all 3 items should be calculated as Sales Tax @ 1% , as i have assigned customer to Sales Tax @ 1%) , the only item (which have assigned the tax rate VAT@1% in the item master) is coming with 1% tax and other two are coming without any taxes.

I can understand that it will take your precocious time however i could not figure out what went wrong. Please help, if possible.

Thanks.

Hi Elax,

Thanks for your beautiful tips. It seems that i am coming to the point. One more things at this stage i would like to request you to look into is, if i assign a supplier a specific tax group (Say 13.5%), is it possible to buy from that supplier, items having different tax rate (say @ 5%), as not all the products are comes under VAT @ 13.5 % however there are some items which comes under VAT @ 5% from that supplier.

Hope you will find a way..

Thanks again

I have created 3 tax rates like @1%, @5% & @13.5% and created the corresponding GL accounts. Now my concern is, if i purchase a product @13.5 % tax, can i sell it with VAT@1 % ?