• From: Malta
  • Registered: 04/06/2012
  • Posts: 123

Topic: Invoice: Include VAT/GST selection with every entry

Hi,
Certain countries require separation of VAT spent for Items to be resold; Office services and Capital Expense.

An example:
A company purchases 10 mobile phones, 9 for resale and one for office use.
Currently one has to create two different items, one with the VAT for resale and another item for the same mobile phone but with the VAT selected for Office Use.

Within the "Direct Purchase Invoice Entry", is it possible to have another column, right after the Price Before Tax that would contain a drop-down with all the possible VAT entries? When an Item is selected the VAT type shown would be the default for that item.

The same for the Supplier Invoice. Currently VAT entries will have to be entered separately with the problem that Items that are 0% VAT are not included in the VAT reports. So, would it be possible to have the VAT column right after the Amount column?

I don't think that the above would require any changes in the database as currently VAT/TAX data is stored already on a per item basis.

TIA
Carmelo

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,094

Re: Invoice: Include VAT/GST selection with every entry

Assume everything bought is for resale at first. When you want to use it for Office purposes, then make an issue to Office Use and credit back the VAT in a Quick entry (if it is a common occurrence) for such issues or in a Journal Voucher (if it is once in a blue moon).

apmuthu's Website

  • From: Malta
  • Registered: 04/06/2012
  • Posts: 123

Re: Invoice: Include VAT/GST selection with every entry

apmuthu wrote:

Assume everything bought is for resale at first. When you want to use it for Office purposes, then make an issue to Office Use and credit back the VAT in a Quick entry (if it is a common occurrence) for such issues or in a Journal Voucher (if it is once in a blue moon).

Thanks apmuthu, however, that does not solve the problem as correcting through Journal Entries will not show proper results in the TAX report.

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,094

Re: Invoice: Include VAT/GST selection with every entry

It is rather an extension of the transaction than a correction.

Alternatively, create a generic zero valued supplier and enter office use items without VAT as if purchased from them and put in the Supplier name in the details.

apmuthu's Website

  • From: Malta
  • Registered: 04/06/2012
  • Posts: 123

Re: Invoice: Include VAT/GST selection with every entry

Apmuthu, thanks for your effort in solving this.
The solutions you provide may solve the amounts problem but should a TAX man inspection follow, it would be difficult to explain the transactions and may be viewed as tax cheating.

Ideally, transactions are entered correctly from the beginning. I don't know how much work is required to add the VAT/TAX column as I suggested in my original post. It seems that for the Direct Invoice changing the TAX rate pointer is not that difficult. Unfortunately I am not confident enough to do it myself. The Supplier Invoice might require more changes to have that included as well.

Carmelo

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,094

Re: Invoice: Include VAT/GST selection with every entry

Check out the equivalent report in FA 2.4 and see if it does what you want.

Whatever means you use, the taxman can still assume cheating on all such tax-less invoices. Choose a country where there is no tax (atleast for overseas transactions) and do business from there! Better no audit than bad audit (corrupt government audits!)

apmuthu's Website

  • From: Malta
  • Registered: 04/06/2012
  • Posts: 123

Re: Invoice: Include VAT/GST selection with every entry

apmuthu wrote:

Check out the equivalent report in FA 2.4 and see if it does what you want.

Whatever means you use, the taxman can still assume cheating on all such tax-less invoices. Choose a country where there is no tax (atleast for overseas transactions) and do business from there! Better no audit than bad audit (corrupt government audits!)

What is the status of 2.4? Is it still in Beta?

With regards to cheating by choosing a country with no tax, I don't think it ethical, good business or worth the risk to cheat. Ideally the application supports the proper way to enter transactions.

I did try the Quick Entry as you suggested earlier, at the end of the exercise I was still unsure that the results were correct. You see as a taxable person within the EU, I am responsible to report purchases from other EU countries, even though no tax is paid to the supplier. There are mechanisms within the EU to check reporting and with the aid of computers, checks are done much more easy.

Carmelo

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,089

Re: Invoice: Include VAT/GST selection with every entry

If you want to report a 0 tax sales/purchases amount, then you should create a 0% tax type and include that into a group.

There are more explanation in the wiki regarding this.

Joe

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,094

Re: Invoice: Include VAT/GST selection with every entry

Since there are a lot of EU users, a small HOWTO for some specific country is in order.

FA 2.4 though now at RC1 can be used with caution for small entities. The DB structures are still subject to change there as development goes through to release.

apmuthu's Website

  • From: Malta
  • Registered: 04/06/2012
  • Posts: 123

Re: Invoice: Include VAT/GST selection with every entry

joe wrote:

If you want to report a 0 tax sales/purchases amount, then you should create a 0% tax type and include that into a group.

There are more explanation in the wiki regarding this.

Joe

Thanks Joe,
However, when one uses the Supplier Invoice to capture an Invoice, the results won't be correct. Let's say I order 10 items and one is required as capital expense. These items pay VAT. So when I use the Supplier Invoice and enter 9 Items under COGS and one of the items under Capital Expense. Now, I have to enter the two transactions for the different VAT. 9 items under the category of VAT for resale and one item for VAT Capital Expense.

The Supplier Invoice does not support this and the results would be incorrect.

What I am suggesting is that on each item entry a column that would allow the user to change the VAT category is added in order to allow for such requirements.

Thank you
Carmelo

11 Reply by aRTx (edited by aRTx 04/17/2016 07:25:43 am)

  • aRTx
  • Member
  • Offline
  • From: Albania
  • Registered: 10/29/2014
  • Posts: 47

Re: Invoice: Include VAT/GST selection with every entry

Please Joe,

Do you plan to add the "VAT" selection drop down list before the "Price after Tax" on purchasing invoice.
Which will always select the default value based on item tax, but if we need change it for any reason we can do that easy.

We need the VAT selection and for Sales Invoice.


THIS WILL HELP US A LOT, WITHOUT IT I'CANT USE FRONTACCOUNTING YET.
I'M WAITING FOR IT MORE THAN ONE YEAR.

please Joe consider this require