Problem with Tax Transactions Reports

If the Partner is paying a tax authority liability, (income tax, profit tax) then this is NOT a Tax Transaction Report transaction - The Tax Transaction Report ONLY shows transactions relating to sales and purchases. Paying a tax liability is NOT a sale or purchase transaction

If you are paying that tax liability with business money then use Cash Accounts - Spend Money
If you are paying that tax liability with personal money then use Expense Claims
Neither of these will show on the Tax Transaction Report as they aren’t sales or purchases related.

So this report is only to show the tax transactions that caused only from a purchase or a sale invoice.

How can i see all the tax transactions that happened during a specific period of time?

Yes

What other tax transactions are there that need to be shown on that report.

The payment of the tax owing to the tax authority is not a Tax transaction, it is the payment of the liability. Or put it this way, lets say you collected during the tax period 1500 tax from sales and paid 800 tax on purchases - so this creates a tax liability of 700 payable to the tax authority.

The payment of that tax liability is not a tax transaction, but is a settlement of the debt that you have with the tax authority.

Can someone explain to me why there is a difference in the VAT between the two following pics? This make me crazy every three months I have to check the VAT payment

So In order to Fix the problem I did some magics.
I change the invoice like below

and the Summary VAT now is ok

But now the TAX Transaction Report is totally wrong

@lubos can you help?

The difference in VAT (88.84 v’s 88.85) is due to how the rounding is handled in the different calculations. In the invoice the VAT on the Freight-in is calculated against one figure 1.31, whereas in the tax report the VAT has been posted against the individual Freight-ins.

1.31 X 0.24 = 0.3144 or rounded to 0.31
0.05 + 0.09 + 0.03 + 0.15 = 0.32 hence the 0.01 difference.

To be honest I wouldn’t get to focussed on that difference, this invoice has a +0.01 another invoice may have -0.01 so overall things will balance themselves out. But I certainly wouldn’t be manipulating the Invoices to engineer a result.

The important thing is that the transactions are in the Tax Transactions Report, the odd 0.01 rounding here and there is not of great consequence.

When we are talking about Taxes is serious from me, and from a program like thiw I am waiting the calculations to be the same everywhere, it should be corrected and calculate always and in every form - report with the same maner.

What about the difference on the Total Purchase column in the tax report with the actual PI?

I cannot do different since I have to agreed the amount with the tax authorities

Yes - the amounts in the Tax Transaction Report are your agreed figures, as this is the document that you use to support your tax obligations. You don’t use Invoices.

Unfortunately here in Greece every invoice is register to the tax authorities from the publisher and the receiver, so it is a problem to be a differece

Maybe the solution is to be able to write down the amount of the tax on the invoice myself and don’t let the application make calculations, this will save me a lot of hours, searching where is the difference with the tax authorities of 5 cents at the end of the trimester.

Maybe @lubos can answer this

The other problem with the tax report (difference in the Total Purchase Column with the actual invoice) is also serious because at the end of this reports are grand totals which are not right, and there there is no matter of rounding. The invoice shows 458,99 and the reports shows 458,93

Also @lubos should answer this

I wouldn’t trust this figure as it is a result of your manipulation where you have included negative amounts. Even though they are on a Purchase Invoice, on the Tax Transactions report they could be reflected under sales values

The problem begins from the rounding that does not follow same approach everywhere

The problem begins with having a tiny whiny freight-in values which are then spread over a multiple of items. The smaller the freight-in and the larger the number of items the more the situation is exacerbated. The situation doesn’t occur with larger values. Below is a spreadsheet calculation.

Note that the VAT on 3 of the 4 freight-ins were rounded up, if that had been 50/50 then this discussion wouldn’t be occurring.

I really thank you for your time and effort, I can understand this, but what can I do if a have lets say 10-15 invoices like this in the trimester and I have to check all of the invoices to find this differences and since I find them how I balance them with the tax authorities, so their table and mine looks the same? It is a problem that cost time, a lot of time, if you have for example 1000 records every trimester

My understanding is that the majority of tax authorities have a knowledge and an understanding of these types of issues and are tolerant of minor computer generated rounding situations. They aren’t going to be spending huge amounts of time knocking on your door because something is 0.05 out, and “if” they do, keep a copy of the provided spreadsheet calculations so you can illustrate that the problem lies within the computer accounting system and not because you are deliberately diddling them of their 0.05

They have much bigger fish to fry.