Ah…the turnover tax. Handling it in Manager is simple:
- Because it cannot be mentioned on a sales invoice, use no tax code to impose this tax on line items. Thus, you will not be collecting it from customers except as part of your pricing structure, the same way you include overhead costs to decide the price of goods or services.
- Every month, produce a Profit and Loss Statement for the relevant time period.
- From the P&L, add all income accounts that qualify as sales under the regulations. Perhaps this will be only one.
- Pay 6% of that amount to the tax authority with your filing.
Normally, you would post the payment of a turnover tax to an expense account created for the purpose. These taxes are usually considered as legitimate expenses of a business. I don’t know the exact rules for Aruba’s turnover tax. Check with an accountant; the tax may be considered a form of income tax on the owner(s) rather than the business.
The reason you will not use tax codes is that Manager’s tax structure is based on taxes collected from customers and paid to suppliers on sales and purchases. These are ongoing and regular taxable transactions. Income taxes, turnover taxes, corporation taxes, and similar taxes are based on the overall results of doing business, so they are calculated based on the Profit and Loss Statement.
As a last note, tax codes can still be used for other types of taxes (if any) levied on customers or paid to suppliers.