Release 380: Non-deductible VAT is now supported for Denmark and Sweden
Menu path
Menu Path
-
General ledger settings -
System / General /
Settings
-
VAT code maintenance -
System / General / Countries / Tax codes
-
General
ledger maintenance - Finance / General ledger / Chart of
G/L's
-
Purchase journal - Finance / Entries /
Purchase
Background
Non-deductible VAT is an existing
functionality in Exact Globe. It has been applied on Purchase journal for
some
countries
like Belgium and Italy and they use this because VAT on the costs could not be
100% booked on the VAT account. However, this functionality was previously not available for
Denmark and Sweden
legislations.
What has been changed
In release 380, this functionality has
been added for Denmark and Sweden with an option called "Non-deductible VAT" in
the General ledger settings (see below). After enable this option, the next step
is to define Non-deductible VAT percentage and Non deductible VAT account.
There are two ways to define
Non-deductible VAT percentage and Non deductible VAT account i.e. in the VAT
code maintenance or in the General ledger maintenance (both screens shown below):
Non-deductible VAT percentage -
Allow user to define a percentage between 0 and 100. This field will use to
determine how many percentage is not deductible out of the total VAT amount.
Non-deductible VAT account -
Allow user to define an account other than the cost account. This field can
leave blank and cost account will be used.
To what extent this
functionality is supported:
-
Only applicable in Purchase
journal.
-
Not applicable in multi-tax
environment, i.e. when "Use tax module" option is enabled.
-
XML functions do not cater for
Non-deductible VAT calculation.
Purchase journal entry
application will base on the percentage to calculate the deductible and
Non-deductible VAT. Priority will be given to the value as defined in the
General ledger settings. In addition, VAT code N is needed to book the
Non-deductible VAT line:
Non-deductible VAT calculation
format for Denmark and Sweden is illustrated in the tables below:
Example 1: VAT 25% excluding
with 100% Non-deductible
|
Date |
G/L |
VAT |
Amount |
VAT basis |
VAT amount |
Calculation |
| 23-05-2006 |
4000 |
25 |
80.00 |
0.00 |
0.00 |
Amount (Net) = 80 |
| 23-05-2006 |
1511 |
25 |
0.00 |
0.00 |
0.00 |
Amount = 0 (0%
deductible) |
| 23-05-2006 |
1234 |
N |
20.00 |
80.00 |
0.00 |
Amount = 80 * 0.25 =
20 (100% Non-deductible) |
Example 2: VAT 25% excluding
with 70% Non-deductible
|
Date |
G/L |
VAT |
Amount |
VAT basis |
VAT amount |
Calculation |
| 23-05-2006 |
4000 |
25 |
80.00 |
24.00 |
6.00 |
Amount (Net) = 80 |
| 23-05-2006 |
1511 |
25 |
6.00 |
24.00 |
6.00 |
Amount = (80 *
0.25) * 0.3 = 6 (30% deductible), VAT basis = 80 * 0.3 = 24 |
| 23-05-2006 |
1234 |
N |
14.00 |
14.00 |
0.00 |
Amount = 80 * 0.25
= 20 (100% Non-deductible) |
Example 3: VAT 25% excluding
with 100% Non-deductible + VAT charged
|
Date |
G/L |
VAT |
Amount |
VAT basis |
VAT amount |
Calculation |
| 23-05-2006 |
4000 |
25 |
80.00 |
0.00 |
0.00 |
Amount (Net) = 80 |
| 23-05-2006 |
1511 |
25 |
0.00 |
0.00 |
0.00 |
Amount = 0 (0%
deductible) |
| 23-05-2006 |
1234 |
N |
20.00 |
80.00 |
0.00 |
Amount = 80 * 0.25
= 20 (100% Non-deductible) |
| 23-05-2006 |
1502 |
25 |
-20.00 |
0.00 |
-20.00 |
Amount = 0 + 20 = -20 (VAT
charged reverse back) |
Example 4: VAT 25% excluding
with 70% Non-deductible + VAT charged
|
Date |
G/L |
VAT |
Amount |
VAT basis |
VAT amount |
Calculation |
| 23-05-2006 |
4000 |
25 |
80.00 |
24.00 |
0.00 |
Amount (Net) = 80 |
| 23-05-2006 |
1511 |
25 |
6.00 |
24.00 |
6.00 |
Amount = (80 * 0.25) * 0.3 =
6
(30% deductible), VAT basis = 80 * 0.3 = 24 |
| 23-05-2006 |
1234 |
N |
14.00 |
14.00 |
0.00 |
Amount = (80 * 0.25) * 0.7 =
14 (70% Non-deductible) |
| 23-05-2006 |
1502 |
25 |
-20.00 |
0.00 |
-20.00 |
Amount = 6 + 14 = -20 (VAT
charged reverse back) |
| Main Category: |
Support Product Know How |
Document Type: |
Release notes detail |
| Category: |
Release Notes |
Security level: |
All - 0 |
| Sub category: |
Details |
Document ID: |
14.931.191 |
| Assortment: |
Exact Globe
|
Date: |
09-05-2017 |
| Release: |
380 |
Attachment: |
|
| Disclaimer |