In case table formatting is lost
On 4 September 2017 at 22:13, Christopher Lam <christopher....@gmail.com> wrote: > Thank you all > > I'd think that the following would nicely summarise how we'd record VAT as > applied to Commonwealth and Europe. We'd assume that the recording of VAT > only matters because we need to submit returns periodically for business > sales and expenses to tax authorities, and this would really not be > necessary for personal expenses. Numbers from wikipedia. I'm not going to > attempt India which has different % according to the initial price... > > Sample Tax Tables for EC country (e.g. 21% / 6% / 0% for Belgium, 20% / 5% > / 0% for UK etc) (2017) > > *Tax Table* > > *Tax Table Entries [Asset/Liability] * > > *Percentage or Amount* > > Standard VAT on Sales > > Liability:VAT:Sales:Standard [L] > > 21% > > Reduced VAT on Sales > > Liability:VAT:Sales:Reduced [L] > > 6% > > EC Sales > > Liability:VAT:Sales:EC [L] > > Liability:VAT:Sales:Reversed [L] > > 21% > > -21% > > Standard VAT on Purchases > > Liability:VAT:Purchases:Standard [A] > > 21% > > Reduced VAT on Purchases > > Liability:VAT:Purchases:Reduced [A] > > 6% > > > > Sample Tax Table for Australia (2017) > > *Tax Table* > > *Tax Table Entries [Asset/Liability]* > > *Percentage or Amount* > > Standard GST on Sales > > Liability:GST:Sales:Standard [L] > > 10% > > GST-free Sales > > Liability:GST:Sales:Zero [L] > > 0% > > Standard GST on Purchases > > Liability:GST:Purchases:Standard [A] > > 10% > > GST-free Purchases > > Liability:GST:Purchases:Zero [A] > > 0% > > > > Sample Sales Tax for Chicago, Illinois USA (2017) > > *Tax Table* > > *Tax Table Entries [Asset/Liability]* > > *Percentage or Amount* > > Chicago Sales Taxes > > Liability:Tax:Sales:State [L] > > Liability:Tax:Sales:City [L] > > Liability:Tax:Sales:County [L] > > Liability:Tax:Sales:Regional [L] > > 6.25% > > 1.25% > > 1.75% > > 1% > > > > > On 3 September 2017 at 19:40, Geert Janssens <geert.gnuc...@kobaltwit.be> > wrote: > >> On zondag 3 september 2017 06:29:48 CEST Christopher Lam wrote: >> > Hi Users & Devs, >> > >> > I'd like to gather data on how Business > Tax Tables are currently being >> > used by users. Tutorial is rather blank on this; says "set up your tax >> > tables", "choose name, entries and percentage or amount", and in doubt, >> > seek an accountant who usually doesn't use gnc. >> > >> > From my understanding, Tax Tables are mainly used to *automatically* >> > calculate various county and state taxes as applied to business invoices >> > and bills... but it's rather confusing that: >> > - menu is labelled 'Sales Tax Tables' but the tables are designed for >> both >> > sales & purchase taxes >> >> True. I have wondered about this also. I assume "Sales Tax" is a standard >> term >> in American English ? It helps to consider that the difference between an >> invoice or a bill is only from which side of the transaction you look at >> it. >> The bill you receive from your vendor is an invoice from their point of >> view. >> Strictly speaking they are all invoices, but the name bill was adopted in >> gnucash to make the differentiation easier (I was told it's a common name >> for >> invoices you have to pay). >> >> > - multiple tax table entries are possible >> > - each tax table entry allows *multiple* account selection, each with >> its >> > own percentage/amount and tax account >> I don't think this is exactly correct. >> One can define multiple tax tables. Each tax table can have multiple tax >> table >> entries. And each entry has *exactly one* tax account. >> >> > >> > So instead of delving deep into theory of taxes and how they apply, >> could >> > users please let me know illustrated examples of how they have set up >> their >> > tables in their jurisdiction, and example invoices/bills that apply? I'm >> > especially keen on an example of an invoice/bill which has multiple >> > entries, each with its own tax table, and the tax table entry >> incorporates >> > multiple tax accounts. (If this makes any sense... because the software >> > supports it!) >> > >> Practical examples in Belgium: >> Depending on the type of good or service being sold we have different tax >> (VAT/GST) regimes. >> On 'luxury goods' (very broad term) we are required to charge 21% VAT >> On food only 6% VAT is charged >> >> That requires me to define two tax tables: >> One for 21% VAT >> One for 6% VAT >> >> So whenever I buy a 'luxury good', I select the 21% VAT tax table for that >> good on the bill. When I buy groceries, I select that 6% VAT tax table. I >> can >> also shop in a big shopping mall and buy both something considered luxury >> and >> some groceries. In that case some lines on the bill will be assigned the >> 21% >> VAT tax table and some the 6% one. >> >> Note these are very simple tax tables. They both have only one entry >> setting >> the percentage and an account to collect the VAT. It makes it easier for >> my >> VAT declaration to track the diffent VAT percentages in separate accounts >> so I >> have accounts for 6% VAT and 21% VAT. >> >> On to a more complicated example: Europe has some special legislation >> regarding sales across country borders. When I sell something to a German >> client (being in Belgium myself), I don't have to charge VAT on the >> invoice, >> but I do have to declare this VAT to the VAT office in two separate lines: >> - I have to count the VAT as 21% sales tax (adding it to all the VAT >> collected >> on invoices for Belgian customers) >> - I have to add it to a special entry that counts all the VAT I did not >> collect because it was an intra-European sale. >> >> To collect these numbers I have created an additional tax table, this time >> with 2 entries: >> - the first entry is set up for 21% and the normal 21% VAT tax account >> - the second entry is set up for -21% and a separate account (intra-Euro >> tax). >> >> So whenever I use this tax table two tax splits are created, one to >> declare >> the 21% VAT and one to neutralize it again accounting wise. When >> declaring my >> taxes I have to reverse the sign of the intra-Euro tax value but that's >> due to >> a mismatch in what gnucash generates as report and what the tax office >> expects >> as value. >> >> There are other uses for tax tables with multiple entries. The most >> straight- >> forward is no doubt the concept of multi-layered taxes. Some jurisdictions >> require to charge different taxes on one invoice: federal, state, county, >> each >> with their own percentages. Each of these taxes would have its own tax >> table >> entry in the same tax table. >> >> >> > This could be used to populate the documentation with examples to >> follow. >> > >> Good plan :) >> >> > Ultimately I'll be keen to create a periodic report which sums all >> relevant >> > data, such as for the Australian Tax Office which wants to know GSTs on >> > sales & purchases every quarter. >> This is not unique to Australia. The Belgian tax office expects this as >> well. >> The exact form of report is what differs from country to country. Since a >> few >> years now the Belgian Tax Office requires the user to upload an xml sheet >> adhering to a certain DTD. Gnucash can't create this (yet). >> >> Geert >> > >
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