Purchase duties

A purchase duty is a tax on incoming sales tax. It's calculated as a percentage of the paid sales tax. Purchase duties are calculated for legal entities that have a primary address in Austria.

The calculation of purchase duties is based on sales tax codes. To include a sales tax code in the purchase duty calculation, select the Purchase duty checkbox on the Sales tax codes page.

You can specify a purchase duty by selecting Tax setup on the Purchase duty page. You can set the duty identifier (for example, KU), description, tax authority, and posting accounts. The duty account is a balance account where the liability for the purchase duty is registered. The cost account is a profit and loss account that the costs are posted to. A settle account is an account where the settlement transactions are generated.

To specify the value of the purchase duty, select Purchase duty value to open the Purchase duty value page. You can specify the purchase duty percentage for the required period.

Purchase duties are generated when you settle and post sales taxes. You can generate the Purchase duty report from the Purchase duty reporting menu.

For more information about global sales tax functionality, see Sales tax overview.