Function Select

RF308S01 - Function Select

The Value Added Tax Information category defines valid value added tax codes.  Each unique key entered on this screen is associated with a current tax rate and a future rate.  A future effectivity date, a value added tax description, and a VAT type are also identified.

Note that the only required field is the VAT code.  If you wish, you can use a separate VAT code for each VAT rate used in your organization.  Entering the country code and/or language code allows you to associate different rates with each VAT code, depending on where a specific customer is located.

Information from this category will be used by both Accounts Receivable and Order Processing.

VALUE ADDED TAX CODE

Required.  This code is entered in positions 1 through 2.

COUNTRY CODE

Optional.  The VAT information associated with this record will be used whenever the bill-to customer is located in this country.  This code is entered in positions 3 through 5.  The code must exist on Reference File category 007.

LANGUAGE CODE

Optional.  To enter the description in your base language, leave this field blank.  To enter the description in a secondary language, enter the language code.  The code must be a valid language code from category D92.  This description will be used whenever customer or vendor documents are printed in the indicated language.  You should enter this code in positions 6 through 7.

Detail

RF308S02 - Detail

This category supports both VAT codes and VAT Surcharge codes.  GST codes are also supported, however, VAT Surcharge codes are only valid in VAT environments.

CURRENT VALUE ADDED TAX RATE

Required.  Contains a value added tax rate that would be multiplied by an order line item amount to calculate the amount of value added tax due.  This rate will be used if the tax point date of the order line is before the future effectivity date (eg. 15000 = 15%).

FUTURE VALUE ADDED TAX RATE

Required.  Used the same way as the Current VAT Rate; however, this rate will be used if the tax point date of the order line is after the future effectivity date (eg. 01600 = 16%).

FUTURE EFFECTIVITY DATE

Required.  The date after which the future value added tax rate will take effect.  Any order lines that have a tax point date after this date will use the future rate to calculate the amount of value added tax due.  The date must be a valid date.

DESCRIPTION

Optional.  Contains the description of the VAT taxing entity.  This description will be printed on customer/vendor documents in their default language.

VAT TYPE

Optional.  Indicates if this VAT code represents:

o  Exonerated VAT (no VAT needs to be charged)

o  Suspended VAT (VAT will not be charged until a limit is reached

o  Normal VAT (VAT is charged for the item at all times)

Valid values are defined on Reference File category 024.  If this field is blank and the Surcharge Code field is blank, then normal VAT processing is used.  If the type is exonerated, the current rate and future rate must be zero.

If this field is blank, but the Surcharge Code field is entered, then the VAT surcharge code will be associated with the VAT code entered for this category.  A VAT surcharge will be applied as well as VAT.  The rate of this tax is dependent upon the VAT rate applied to the item.

SURCHARGE CODE

Optional.  This field is used to define a VAT surcharge code that is associated with a VAT code and to retrieve the VAT surcharge rate information.  If a surcharge code is entered, it must exist on this reference file category and the VAT Type field must be blank.

If a VAT type of surcharge is entered in the VAT type field, then this field must be blank.

Note:  When using the VAT surcharge functionality, it is important that a VAT surcharge code only be associated with one VAT code even if the surcharge rate is to be the same.  This one to one relationship is necessary to avoid possible