If you have set up the Tax features correctly, Tax is calculated and posted automatically.
You must report the volume of your trade with European Union (EU) countries/regions to the tax authorities, even if no amount has to be settled. Refer to the guidelines provided by your country/region's tax authorities for reporting requirements and instructions.
Every posting that involves Tax creates an entry in the Tax Entries window. These entries are used to calculate your Tax settlement amount (payment or refund) for a specific period.
You can also use general ledger entries to calculate the settlement amount if you set up accounts on the chart of accounts for this purpose. (See the Type field on the Tax statement line.) Note, this method does not follow the format used by the tax authorities on the Tax statement.
You can use a Tax statement to calculate the Tax settlement amount for a period. You can then print a Tax statement and copy the information onto a payment slip.
Tax is not calculated on sales to Tax-liable companies in other EU countries/regions. You must report the value of such sales separately. You can use the VAT - VIES Declaration Tax Auth. report to produce the declaration.
You can use the Calc. and Post Tax Settlement batch job to close the Tax entries and transfer purchase and sales Tax amounts to the Tax settlement account.
The following table describes a sequence of tasks, with links to the topics that describe them. These tasks are listed in the order in which they are generally performed.
| To | See |
|---|---|
Post a journal where the entire amount must be treated as Tax, for example, if you receive a Tax invoice from the tax authorities for imported goods. | |
Post a purchase invoice where the entire amount must be treated as Tax. | |
View entries that have been created by posting Tax. | |
Define how the Tax statement will be calculated. | |
Preview a Tax statement on screen before printing the statement. | |
Print a Tax statement that you can use to fill in the payment slip for the tax authorities. | |
Create a periodic Tax report that can be submitted to the tax authorities. | |
Print a VIES report for sales to other EU countries/regions. | |
Close the open Tax entries and post the net settlement amount to the Tax settlement account. |