• Registered: 12/07/2007
  • Posts: 8

Topic: TAX/VAT on items

Hi All,

This project looks very good. But i got one question.
How is the vat calculated?
Here in holland we have 2 rates. 19% and 6%.
400 euro's excl. vat with a rate of 19% should give us 76 euro's vat and whole sale comes on 476 euro's.

When i do this in your software, the vat calculated comes to 98.19 euro's.

Am i doing something wrong?

Hope you can help me.

Thanks,

Henk.

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

Re: TAX/VAT on items

Hello,
First you setup your various vat rates. Then you build your vat groups. This is an easy way of then using the correct taxgroup on the customers/Items.
I hope this gives a meaning to you, otherwise can someone from holland help him a bit, please.

/Joe

  • Registered: 12/07/2007
  • Posts: 8

Re: TAX/VAT on items

Hi Joe,

I followed your hints. Right... Calculation goes correct. but only for the total price.
I still am doing something wrong. I guess.

Alright, I have an order which contains 2 items. 1 item has 19% VAT, the second one 6%. All my item prices are excluding vat.

So the prices of the items are:
item 1, amount of 2, price total 400 excl. 19% vat
item 2, amount of 2, price total 264 excl. 6% vat
This program calculates the following vat:
19% of 646 = 122.74
6 % of 646 = 38.76
But i need:
19% of 400 = 76 euro
6% of 264 = 15.84 euro.

Sorry, here in holland we use 2 vat percentages. By law food and drinks are 6%, all other 19%. International services within eu, 0%. And in 2008 we get a fourth tac percentage. Just making it all easier.

I defined a group tax 'the netherlands' and linked the 2 taxes (6% and 19%) with it.
item 1 is linked to 19% and item 2 to 6%.
And the above text is the result.

Hope you still can help.

Thanks,

Henk.

4 Reply by fysikos (edited by fysikos 12/08/2007 08:36:29 pm)

  • Registered: 12/07/2007
  • Posts: 8

Re: TAX/VAT on items

Ok... got it working properly.

My english is good, but my vocabulary not yet complete. I was mislead by the word exempt. on taxes, i have to exempt the other percentage. And visaversa. ITS WORKING!! thanks for the directions Joe!

Thanks,

Henk.

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

Re: TAX/VAT on items

Hello Henk,
Great that you solved it. At first it looked a bit complicated. Henk, please specify exactly how you set up your tax groups, to help others with the same problem.

Best regards
Joe

  • Registered: 12/07/2007
  • Posts: 8

Re: TAX/VAT on items

Hi Joe,

With this message i will try to explain what i did.

GL, GL-Accounts, new account
code: 3001
name: hoog btw verkopen
group: Sales
&
code: 3002
name: laag btw verkopen
group: Sales

Setup-tab, Taxes, Create taxes. in the case of netherlands,
Desc: BTW 19%
Rate: 19
Sales GL: 3001
Purchase: 1400 (well this is a default, you can use here another one)     
&
Desc: BTW 6%
Rate: 6
Sales GL: 3002
Purchase: 1400 (well this is a default, you can use here another one)     

Create customers on currency Euro's (smart to exclude currency calculations)

Items and History, create item (I will only enter here the relevant data, the rest enter the right data)
Item tax type: BTW 19%
Sales account: 3001

& in case of 6%, the following

Item tax type: BTW 6%
Sales account: 3002

I hope this helps. If i forgot something please reply me...

Greetz,

Henk.

  • From: South Africa, Natal
  • Registered: 07/19/2008
  • Posts: 46

Re: TAX/VAT on items

Hi fysikos (I'm using FA1.16)

Thanks for your Explanation. However as I'm not in the Accounting Profession I need more Info. All I need is to be able to ADD 14% VAT on Every Invoice I create for a Client (Whether it's Labour or Goods Sold). I need to SHOW this 14% VAT on Every Invoice for each Client.

How do I do this.

Please help

Sorry for the Noob Question big_smile

  • From: South Africa, Natal
  • Registered: 07/19/2008
  • Posts: 46

Re: TAX/VAT on items

Sorry Chaps I got it sorted Out.