@Tut - there is a problem with what you advised above “you will need to activate a 100% tax code so the entire amount goes towards VAT paid”
As noted by yourself in another topic with regards to tax reports “But I suspect it only draws on built-in tax codes, not custom codes you create yourself.”
And noted by @Hennie above “There is a vat tax return report for the Netherlands but it only works with the standard vat tax codes. Amounts entered via a custom code do not appear on the report.”
While the 100% tax code may work from an accounting perspective, it doesn’t with regards to tax reporting.
Perhaps the Guide with regards to the custom 100%, should contain an alert that usage of this code will not output to tax reports if that is an expectation.
The only way to take up separated import tax charges and have them included in the reporting is as demonstrated above, using the in-built codes with a two line entry. Perhaps the Guide should also include this method.
Valid concern. That was in a discussion of the BAS worksheet. I still don’t know how that works. But the 100% custom tax code is linked to Tax payable just like any in-built tax code. So the accounting magic will work. I just don’t know how it ripples through to that single-country worksheet. And not knowing how the worksheet should function, I’m not in a position to test it. Maybe you could? I’d be happy to enhance the guide if testing shows it doesn’t work. I’d need a good example, though.
No disputing that the accounting works - but it doesn’t (can’t) ripple through to the tax worksheet.
There is no need to test it as the Custom 100% code itself tells you that it doesn’t (can’t) ripple through.
Lets assume that a tax worksheet has these labelled fields T1, T2, T3, T4 etc.
The inbuilt tax code does two things with a transaction, it puts a value into the Tax Payable account and points that same value to the appropriate worksheet field for that transaction.
The Custom 100% code only does one thing, puts a value in the Tax Payable account. It doesn’t have any pointer that will put the value to a tax worksheet field.
Therefore, for those countries with tax worksheet capabilities and GST/VAT import type transactions - that is useless. That’s your example, no pointer means the tax worksheet connection doesn’t (can’t) function.
Furthermore that is why Australia has a special inbuilt code, to cater for the short comings of the custom 100% code. @Hennie has obviously tested (discovered) it, that’s why he was so definitive in his comment.
So the custom 100% code is only relevant to countries that don’t have a connected tax worksheet report.
That’s is the Guide’s alert/warning - This custom 100% code shouldn’t be used if you are also using the tax worksheet reporting feature. For tax worksheet users, you need to use the standard in-built codes where import tax is charged separately from the Purchase Invoice - in these cases you need to follow the following example (demo of the two line process).
You have right but i dont understeand why is no any possibility to just put option of field payed tax form customs or something like that by creators of that software.
Because it would be complicated to do.
First you would need a field to select which country
Second you would need the user to know which tax sheet field to select.
Third on some tax sheet’s the same value gets added to multiple fields, so the user also must know this.
Fourth and most importantly would be the combining of the custom rate and in-built rate data logically.
If the user gets any of this wrong and then relies upon the tax sheet data for submitting their official forms which would then be incorrect, they could expose themselves to penalties.
