Technical FAQ | GAZT - Value Added Tax
A Value-Added Tax (VAT) invoice is a document issued by an accountable person setting out the details of a taxable supply and all related information as. (iii) VAT Control Account, this is your VAT Clearing Account, meaning that at month Invoice number, amount VAT exclusive, VAT amount, and amount VAT inclusive. The total of the VAT exclusive column gives you total sales which should be The second recon would be to reconcile Year to Date figures, by taking into. f. the date of supply, if the supply was concluded, or payment made prior to The prices stated on a VAT invoice should be VAT exclusive. Prices stated on a VAT sales receipt can be either inclusive or exclusive of VAT, however the c) an international organization within the meaning of Section 3 (1) of.
The system resets all of the VAT defaulting for this level only. VAT Locations The following terms appear only when the transaction is for a service: This field is applicable only in a VAT environment that tracks the tax by regional subunit of a country, such as a province or state. Vendor Location Country Shows the vendor location country. Vendor Location State Shows the vendor location state. Service Performed Country Depending on the services performed flag setting in the VAT defaulting hierarchy for example at the vendor or business unit levelthe system sets the value for this field as follows: If it is the ship from location, it sets it to the vendor location country.
If it is the ship to location, it sets it to the PeopleSoft Payables business unit country. If it is the buyer's location, it sets it to the PeopleSoft Payables business unit country. If it is the supplier's location, it sets it to the vendor location country. Service Performed State Depending on the services performed flag setting in the VAT defaulting hierarchy for example the vendor or business unit levelthe system sets the value for this field as follows: If it is the ship from location, it sets it to the vendor location state.
If it is the ship to location, it sets it to the PeopleSoft Payables business unit state. If it is the buyer's location, it sets it to the PeopleSoft Payables business unit state. If it is the supplier's location, it sets it to the vendor location state. Ship From Country Shows the country from which the good or service is shipped.
In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.
Ship From State Shows the state from which the good or service is shipped. Ship To Country Shows the country to which the good or service is shipped. This value must be identical to the country of the Ship To ID on the voucher line. Ship To State Shows the state to which the good or service is shipped. The value in this field determines whether or not the special rules for freight transport within the European Union apply.
The value comes from the VAT default hierarchy. Place of Supply Driver Displays the usual place of supply meaning, the place where VAT is usually liable for the service. This value is used to help determine the place of supply country and the VAT treatment. The system derives the value from the VAT default hierarchy. Defaulting State If the reporting country requires that VAT be tracked by state or province, this field displays the state within the reporting country that is used to retrieve values from the VAT Defaults table.
None, Exonerated, or Suspended. The default value comes from the VAT entity driver. The system calculates VAT before it applies any early payment discounts. The system calculates VAT after it deducts early payment discounts. If there are two percentage discounts, the system uses the larger of the two when it calculates VAT.
The system will not use discount amounts, only discount percentages. Recalculate at Payment If you are calculating VAT at gross, select this check box to enable VAT recalculation at payment time to allow for any early payment discounts.
This causes the system to adjust the VAT amount at the time of payment if the discount has been taken. The VAT amount is stated separately from the merchandise amount on the invoice, and is added to the total merchandise amount to obtain the voucher gross amount. The total VAT amount is entered on the voucher header. The VAT is included in the merchandise amount specified for each line and is not stated separately. No separate VAT amount is entered on the voucher header.
What is a VAT invoice?
This value is set on the AP Options driver and defaults through the VAT hierarchy voucher origin, control group, vendor, and vendor location. Declaration Point For a good or a service, shows when you want VAT transaction information to be recognized for reporting purposes. Acctg Date accounting date: VAT is recognized on accounting date.
VAT is recognized on delivery. VAT is recognized at time of invoice. VAT is recognized at time of payment. This value is set on the VAT entity registration driver and defaults through the VAT hierarchy PeopleSoft Payables business unit options, voucher origin, control group, vendor, and vendor location. It defaults from the accounting date when the Declaration Point is Acctg Date accounting date. You cannot override this date, however, you may modify the accounting date on the Invoice Information page.
It defaults from the shipment date, receipt date, or invoice date, in that order, when the Declaration Point is Delivery. You may override this date. It defaults from the invoice date when the Declaration Point is Invoice. Amounts are rounded normally up or down to the precision specified for the currency code.
For example, for a currency defined with two decimal places, Amounts are rounded down. Rounds up and limits rounding precision to one additional decimal place. For example, for a currency defined with 2 decimal places, Calc on Advance Payments calculate on advance payments Select for the system to calculate VAT on advance payments for vouchers of the Prepaid Voucher voucher style.
The value is derived from the VAT entity registration driver. You must specify the correct declaration point option when defining VAT defaults for the system to automatically and correctly perform this calculation. Include Freight Select for the system to include any freight amounts in the VAT basis by calculating VAT on the merchandise amount plus any freight amount. This option is only available for exclusive VAT calculation. The value comes from the VAT entity registration driver.
Include Miscellaneous Select for the system to include any miscellaneous charge amounts in the VAT basis by calculating VAT on the merchandise amount plus any miscellaneous charge amount. The system automatically calculates the VAT based on this exchange rate on saving the page. The system automatically calculates the exchange rate. If this check box is selected, the other, non-account ChartFields will be obtained based on the ChartField inheritance options that have been defined for non-recoverable VAT.
For each ChartField, these options allow you to specify whether the ChartField value is inherited from the expense distribution line, whether the value comes from the business unit defaults, or whether the value comes from the VAT accounting template. If this check box is not selected, the other, non-account ChartFields are all obtained from the VAT accounting entry template.
The value of this check box comes from the Procurement Control component. This field appears only when the transaction is for services. Within Oracle's PeopleSoft Enterprise applications, detail VAT treatment values on the transaction lines, which come from complex algorithms, are used for applying the precise defaults applicable to the transaction lines.
The system tracks the VAT treatment group on the header enabling individual transaction lines to be grouped together into invoices during batch processes and to validate the detail line VAT treatment values on the transaction lines. For accuracy and consistency, use the following fields and buttons to adjust affected VAT defaults or to reset all VAT defaults.
Adjust Affected VAT Defaults Click this button to have the system adjust the VAT defaults that are affected by your changes, after you have selected the affected levels.
This avoids updating values that you have already overridden. Click the List of fields to be selected icon to view a list of all of the fields whose values will be adjusted if you click the Adjust Affected VAT Defaults button. Reset the VAT defaults for the voucher line and the voucher distribution line.
Fishing equipment Boats, nets, floats, twines, hooks and other fishing gear as well as imported inputs for fishing nets and twines. Water Supply of water. The exemption excludes packaged and distilled water i. Electricity Domestic use of electricity up to a specified consumption level prescribed in regulations by the Minister i. Printed matter books and newspapers These must be fully printed or produced by any duplicating process.
It includes atlases, books, charts, maps and music. The exemption excludes imported newspapers, plans and drawings, scientific and technical works, periodicals, magazines, price lists, greeting cards, almanacs, calendars and stationery. Transfer of a Going Concern The supply of goods as part of the transfer of a business as a going concern by one taxable person to another taxable person. Postal Services Supply of postage stamps i. The business can however recover these input taxes by including it in the cost of production and distribution.
It must be noted that businesses which make only exempt supplies cannot register for VAT. This is important because it shows the amount of tax that the supplier must account for as output tax and the amount that the customer, if he is registered for VAT, may be able to claim as input tax.
In certain business circumstances it is recognised that invoices are not normally issued for individual supplies and that it would be impracticable to do so. These circumstances normally apply to retailers for example: It is for this reason that the retail schemes have been designed. They enable certain eligible VAT registered traders to calculate the output tax due on their supplies without having to issue the normal tax invoices.
What schemes are available? How the schemes are operated? The schemes normally apply to retailers of goods only. If you make both retail and non-retail sales, you will be able to use a retail scheme for your retail sales only. If you make any other supplies, for example to other VAT registered businesses, you must account for them outside the scheme. Any supplies which you deal with outside a scheme must be dealt with in the normal way, i.
Correct use of the terms VAT inclusive and exclusive
You must therefore follow the rules in the General Guide Public Notice No 3 PN3 on the download section for that part of your output tax. For example, the tax charged on most supplies of hotel accommodation and restaurant meals will be accounted for by the issue of tax invoices in the normal way. However, if you supply catering services and also have a retail outlet, such as a retail shop, which makes non-catering supplies, you may use a Retail Scheme for that part of the business provided you can keep completely separate records for both activities.
Scheme 1 This scheme is for calculating VAT when all of your supplies are at the general or standard rate only. If all your supplies are standard-rated, this is the only scheme you can use.
Scheme 2 This scheme is for use when the supplies you make are of mixed liability i. Under this scheme you have to separate your takings at the point of sale, for example, by using separate or multi-total tills. Provided you can do this accurately, the scheme is very simple to operate. Scheme 3 The third scheme can be used as an alternative to Scheme 2 where a person cannot differentiate at the point of sale between the different types of goods sold taxable or exempt supplies.