Tax Model Implementation
Hi Everyone,
I am experiencing some difficulty implementing the best practice applicable to the following situation.
• The current sales tax is 15% on taxable items and 0% on exempted items.
• The business is currently a non VAT vendor, and does charge not sale tax.
• The suppliers are both VAT and Non VAT vendors, so some charge the 15% VAT.
• Future growth will include exports.
It would be fair to assume that the business turnover will grow to levels where it will become compulsory for the business to charge the appropriate sales tax in the future.
Current tax set up:
Tax Authorities
Receiver of Revenue VAT
Output VAT GL Code – 2300.
Input VAT GL Code – 2310.
Tax Categories
Taxable Item 15%.
Exempted Item 0%.
Non VAT Vendor 0%.
Freight 0%.
Tax Categories
Local Sales
Export Sales
Tax Provinces
Default Tax province
I would like to enter supplier prices excluding and let the system add the applicable rate i.e. zero if not a VAT vendor or the exempted and 15%, currently, if it is a registered VAT vendor. When the rate changes the rate must just be amended and not recalculated and entered manually.
Basically the same applies to the sales not subject to VAT as the business is not currently registered for VAT but the system needs to compute the correct VAT when the business is registered as a VAT vendor.
The item is linked to a tax category,
I looked at the help file and some forum and other blog posts, but I am not getting it right.
Your help is appreciated.
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