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Taxable items
12-08-2015, 01:45 AM
Post: #1
Taxable items
Hi All
Here is my dilemma, when placing an order I need to be able to change an item to be taxable or exempt.
Where the issue arises, is there are some customers that buy an item that is taxable and then buy the same item but is exempt.
Has anyone run into this scenario and if so how would I deal with it my first thought was to modify the SelectOrderItems.php to be able to do this on the fly.
Any suggestions would be greatly appreciated.
Thanks for all the great work.
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12-09-2015, 01:59 AM
Post: #2
RE: Taxable items
Hi Dave, I cannot see an obvious way to achieve this. You would need a new field in the salesorderdetails table and then changes to the ConfirmDispatch_Invoice.php script as well as SelectOrderItems.php.

Just to satisfy my professional curiosity as an accountant how can the same customer order the same item, and it be exempt sometimes and taxable atother time?

Thanks
Tim
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12-09-2015, 03:46 AM
Post: #3
RE: Taxable items
I believe here for example if you are a distributor of computers and you purchase them to resell they aren't taxable but if you used the computers to run your operation they would be.
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12-09-2015, 06:39 AM
Post: #4
RE: Taxable items
(12-09-2015 03:46 AM)agaluski Wrote:  I believe here for example if you are a distributor of computers and you purchase them to resell they aren't taxable but if you used the computers to run your operation they would be.

Thanks Andrew that would explain it.

Tim
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12-09-2015, 06:55 AM
Post: #5
RE: Taxable items
Tim
In this case the item is used in the dry cleaning process that makes the item exempt and that same item to the customer is also sold as a retail item that is taxed.
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12-09-2015, 01:25 PM
Post: #6
RE: Taxable items
A silly thought, perhaps you could do this by having the item sold under 2 codes. One of which is an assembly item with it's only component this item.
Each of the two items are set up as belonging to different tax categories - so they are taxed differently.

Phil Daintree
webERP Admin
Logic Works Ltd
http://www.logicworks.co.nz
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12-10-2015, 12:02 AM
Post: #7
RE: Taxable items
Slick solution. Pretty cool
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12-10-2015, 03:04 AM
Post: #8
RE: Taxable items
(12-09-2015 01:25 PM)phil Wrote:  A silly thought, perhaps you could do this by having the item sold under 2 codes. One of which is an assembly item with it's only component this item.
Each of the two items are set up as belonging to different tax categories - so they are taxed differently.

Phil
Thanks for the help sounds like a good solution, but when I go to setup an item there is no place to add the components it may be a setting in the setup I am not seeing.
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12-10-2015, 12:48 PM
Post: #9
RE: Taxable items
You just need to go to the manufacturing - bill of material to enter the components.

Phil Daintree
webERP Admin
Logic Works Ltd
http://www.logicworks.co.nz
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12-10-2015, 08:20 PM
Post: #10
RE: Taxable items
Does this not highlight a flaw in the logic? If you are selling a kit made up of taxable and non taxable items, and there isn't one "principal item" the items should be be taxed on a line by line basis?

In the UK and the wider European Union the following directive applies to VAT on kit items:.

"1 In the case of a multiple supply, each constituent element of the transaction is treated as an individual supply for VAT rating purposes. The taxable person must apportion the consideration payable by the customer between all the constituent elements supplied, thereby ensuring that the appropriate rate of VAT is applied to each portion of the consideration payable. In this regard the VAT Act requires that the total consideration be apportioned in a way that correctly reflects an accurate ratio of the values involved. The taxable person must be able to demonstrate, on request, to the satisfaction of Revenue that the result of the apportionment calculation is reasonable. Acceptable apportionment methods would include, for example, splitting the consideration according to the ratios of the cost of supplying each element, or according to the market value of each element.

2 In the case of a composite supply there is one principal element or supply to which any other element or elements are ancillary. A single rate of VAT applies to the entire transaction at the rate applicable to the principal supply."

Tim
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