Wikiadmin: Created page with "Taxes such as the VAT are settle as the difference between: * the VAT that is charged by an organization and paid by its customers, that is the Output VAT or VAT collected on..."

2021-11-18T01:28:49Z

Created page with "Taxes such as the VAT are settle as the difference between: * the VAT that is charged by an organization and paid by its customers, that is the Output VAT or VAT collected on..."

New page

Taxes such as the VAT are settle as the difference between:
* the VAT that is charged by an organization and paid by its customers, that is the Output VAT or VAT collected on Sales
* and the VAT that is paid by an organization to other businesses on the supplies that it receives, that is the Input VAT or VAT paid on purchases

For additional information about the tax payment used for the VAT settlement, please review the [[How_to_manage_VAT_settlement_and_payment|How to manage VAT settlement and payment]] article.

Tax payment process can be run after below detailed configuration is done:

* A [[Business_Partner|Tax Authority]] business partner needs to be created in the business partner window. This business partner needs to be setup as both "Customer" and "Vendor" because some times the organization will have to pay to the tax authority and the other way around.
* A [[G/L_Item|G/L item]] needs to be created and then linked to each [[Tax_Register_Type|Tax Register Type]]. The G/L item is going to be used to post the corresponding tax payment to the ledger.
** The "'''G/L item Debit Account'''" of the G/L item is the account to use while posting a tax payment to be received from the tax authority.
** The "'''G/L item Credit Account'''" of the G/L item is the account to use while posting a tax payment to be made to the tax authority.
* As many [[Tax_Register_Type|Tax Register Type]] as required linked to the tax rates of each type to take into account for the calculation of the tax payment.

Template:ManualDoc:W1002100004 - Revision history

Wikiadmin: Created page with "Taxes such as the VAT are settle as the difference between: * the VAT that is charged by an organization and paid by its customers, that is the Output VAT or VAT collected on..."