• From: Indonesia, Japan
  • Registered: 01/08/2014
  • Posts: 190

Topic: Negative tax

In Indonesia, that is a tax that reduce the total amount of invoice (it's called PPH 21). For example the total invoice is 10.000. The VAT for this order is 1.000 and the tax for PPH 21 (2%) is 200. But the 200 is not like VAT which add the total amount, it reduces the total amount. SO the calculation is like this : 10.000+1.000-200=10.800. Is it possible to do this? Yesterday, I modify the code in tax entry so that negative value to be allowed and it works fine (I deleted the >0 check in can_process function). It solve the problem but is it the right thing to do?

  • joe
  • Administrator
  • Offline
  • Registered: 03/15/2007
  • Posts: 5,107

Re: Negative tax

Well, if it works, this is the way to go. What about the tax report? Does it work too?

If everything works, then we could consider to give a warning instead of an error.

Joe

3 Reply by apmuthu (edited by apmuthu 03/13/2014 07:56:46 am)

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: Negative tax

The PPH seems to be a tax rebate and can make the real VAT to be 10% - 2.1% = 7.9%.

Hence using PPH adjusted VAT:

Item Value = 10,000
7.9% VAT   =    790
            =======
Total      = 10,790

apmuthu's Website

  • From: Indonesia, Japan
  • Registered: 01/08/2014
  • Posts: 190

Re: Negative tax

I haven't check the tax report. But it seems this is a special case because there is only applied for service item. PPH is income tax for the technician.