Enter lines in VAT posting setup
The VAT Posting Setup page is a matrix that combines VAT business and product posting groups, like the General Posting Setup page. Each combination determines the accounts that are used to post sales and purchase VAT.
The VAT Posting Setup page contains additional fields that are specific to VAT recording and posting:
VAT percentage
VAT calculation type
EU service
VAT Clause Code
Record unrealized VAT
Adjust VAT for payment discounts
The following fields are only available when the unrealized VAT is activated by selecting the Unrealized VAT field on the General Ledger Setup page:
Unrealized VAT Type
Sales VAT Unreal. Account
Purch. VAT Unreal. Account
Reverse Chrg. VAT Unreal. Account
To manually enter a VAT posting setup line, follow these steps:
Select the search for page icon in the top-right corner of the page, enter VAT posting setup, and then select the related link.
Select New to open a new VAT posting setup card.
On the General FastTab, in the VAT. Bus. Posting Group field, enter the relevant VAT business group.
In the VAT Prod. Posting Group field, enter the relevant VAT product group to complete the combination.
In the VAT Calculation Type field, select one of the following options:
Normal VAT - Use this option to calculate VAT for items that are sold or purchased with the combination of business posting group and product posting group code. With this option, the seller of the item calculates and withholds the VAT.
Reverse Charge VAT - Use this option when you are trading with other countries or regions within the European Union (EU) where the purchaser must calculate and settle VAT accounts with tax authorities.
If this option is used, the Reverse Chrg. VAT Acc. field must be filled in. When you sell goods with reverse charge VAT, then VAT is not calculated or withheld. When you purchase goods, the program calculates the VAT amount, debits the purchase VAT account, and credits the Reverse Chrg. VAT account.
Full VAT - Use this option when the amount to post, with the combination of the VAT business posting group and the VAT product posting group, consists completely of VAT. This option is useful, for example, when you record import VAT or make an entry to correct a VAT calculation error. If the correct entry is made by using Full VAT, the original VAT entries aren't referenced. This approach can make the preparation of the VAT statement more difficult.
Sales Tax - Use this option only if US sales tax is recorded instead of VAT.
In the VAT % field, enter the relevant VAT rate. Don't enter the percentage sign (%).
In the VAT Identifier field, enter a VAT grouping identifier. The VAT identifier is used to group various VAT posting setups with similar attributes, such as the VAT percentage.
In the VAT Clause Code field, choose a relevant code if you want to include a descriptive text on documents (such as sales invoices) that use the combination of VAT business posting group and VAT product posting group.
Select the EU Service field if the combination of VAT business posting group and VAT product posting group is set up to process sales and purchases of services in the European Union.
Select the Certificate of Supply Required field if documents that use the combination of VAT business posting group and VAT product posting group require a certificate of supply.
In the Tax Category Code field, enter the VAT category for sending electronic documents, such as PEPPOL sales invoices.
On the Sales and Purchases FastTabs, in each relevant account field, enter the G/L accounts that are used to post transactions for the selected VAT posting combination.