| Field | Description |
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| Name
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In this field, you can specify the name of the current tax code.
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| Tax Rate
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In this field, you can specify the percentage rate of the current tax code.
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| Ratio
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In this field, you can specify the deductible ratio of the receivable tax or charge. Companies with both taxable and tax-exempt sales are not entitled to deduct the full tax amount on expenses. If, for instance, only 70% of the receivable tax can be deducted, you must specify 70 in this field. If you have specified a dimension combination which refers to the account for ratio tax, the remaining 30% will be posted on the account specified by means of the dimension combination. If no account for ratio tax is specified, the remaining 30% will be posted on the same account as the expense from which the tax amount has been calculated. Note that this allocation only applies to manual postings. It is only possible to specify a ratio for receivable G/L tax codes as the ratio for payable tax codes is automatically set at 100.
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| Tax Direction
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In this field, you can select the tax direction of the current tax code. You can choose between “Receivable,” “Payable,” “Withholding Tax Receivable,” (used on customer payments) and Withholding Tax Payable (used on vendor payments).
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| Nature of Tax
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In this field, you can specify whether registrations in the window General Journal are to be linked to either taxable, tax exempt or export item sales when you calculate tax in the Tax Settlement workspace. The field only applies to payable tax codes.
It is only necessary to specify tax codes if you wish to register outgoing invoices directly in the window General Journal. If you register tax-exempt or export item sales in this way, you must create a G/L tax code with a tax rate of 0%. The tax rate is used in connection with tax calculation. The tax basis of entries for which you have selected either “Taxable,” “Tax Exempt,” or “Export” in this field will be added to item sales originating from invoices or credit memos.
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| Default Tax Type
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In this pop-up field, you can choose a tax type. Tax types are created in the pop-up field “Tax Type” in the Popup Fields workspace in the Set-Up module. In connection with posting, the tax type will be transferred to the entry that causes the tax settlement, and it is hereby possible to distinguish between different types of tax.
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| EU Acquisition Tax Code
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By completing this field, you can specify that the G/L tax code is used for EU acquisition tax.
For receivable EU acquisition tax codes, the tax amount is not calculated on the basis of the original amount as in the case of ordinary G/L tax codes. The full amount of the originally specified amount will be posted, and the tax which is calculated from the field “EU Acquisition Tax Rate” will be posted on the account referred to by the dimension combination specified in the field “Tax” in the Posting References island, and offset against the account referred to by the dimension combination specified in the field “EU Acquisition Tax.” If you have specified a ratio, the EU acquisition tax will be calculated fully, whereas the non-deductible part of the tax amount will be posted on the account for tax reconciliation. If the latter has not been specified, the amount will be added to the expense itself.
It is not possible to specify an EU acquisition tax rate or tax code for payable EU acquisition tax codes. Payable EU acquisition tax codes are used exclusively for manual postings of EU item sales as the G/L entries will be marked EU Sale and thereby appear in the field “EU Sale” on the tax settlement.
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| EU Acquisition Tax Rate
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In this field, you can specify an EU acquisition tax rate to be used for the calculation of EU acquisition tax. For receivable EU acquisition tax codes, the tax amount is not calculated on the basis of the original amount as in the case of ordinary G/L tax codes. The full amount of the originally specified amount will be posted, and the tax which is calculated from the field “EU Acquisition Tax Rate” will be posted on the account referred to by the dimension combination specified in the field “Tax” in the Posting References island, and offset against the account referred to by the dimension combination specified in the field “EU Acquisition Tax.” If you have specified a ratio, the EU acquisition tax will be calculated fully, whereas the non-deductible part of the tax amount will be posted on the account for tax reconciliation. If the latter has not been specified, the amount will be added to the expense itself.
For payable EU acquisition tax codes it is not possible to specify an EU acquisition tax rate or an EU tax account in the field “EU Acquisition Tax.” Payable EU acquisition tax codes are used exclusively for manual postings of EU item sales as the G/L entries will be marked EU Sale and thus appear in the field “EU Sale” on the tax settlement.
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