Tax

Use this page to manage the tax rates for your country. When you create a tax rate, you need to link it to a tax category and a country.

A tax assigned to the Placeholder category needs to be reviewed and assigned to another category, such as City, Country, State, and so on.

The Primary external reference is required to define the tax profile. This is used when posting to the journal.

The Secondary external reference is reserved for reverse charges. For example, when a French company makes a purchase from another EU Member State. The invoice is generated without the VAT. However, the French company needs to declare the VAT that was not collected by the EU Member State supplier.

The Tax values grid displays the tax rates based on the linked category and legislation.

Create a tax rate

When you create a tax rate, you need to link it to a tax category and legislation.

If you use Sage FRP 1000, most of the tax rates are delivered by Sage.
  1. Select Create.
  2. Enter or select a tax category. You cannot select the Placeholder category, which is used for unassigned imported rates.
  3. Enter a name for the rate.
  4. Select the country. In the Select country window, you can see that countries are linked to legislations. This is to meet tax obligations. If you don't see your country listed, you can select Create new record to add your country and link it to a legislation.
  5. For the Primary external reference, enter the tax profile in your financial solution. This is used when posting to the journal.

  6. For a legislation that manages reverse VAT:

    1. Enter a Secondary external reference for a reverse charge.
    2. Select the Reverse charge checkbox.
    3. Enter the required Legal mention for the reverse charge.
  7. Enter or select the Posting class for journal entries.
  8. In the Tax values grid, the default tax value displays. For each new line, select Add above the grid to add a new line.
  9. For each line, enter or select an end date, a percentage for the rate and the deductible rate. If you do not know the end date, you can leave this blank.

Modify or delete a tax rate

Deleting or editing a tax rate delivered by Sage for Sage FRP 1000 integration is not recommended.

In the Tax values grid, you can add, edit, or delete lines.

You can modify a tax category after importing a US tax code or after importing with not category assigned.

You can only modify a tax category if it is not assigned to a tax determination rule and if the tax is not in use on a document.

Select the tax rate from the Selection list and select Delete.