Hi Christopher. UK (and I imagine the rest of the EU) should really have a 0% rate too... VAT at 0% is not the same as "exempt from VAT", at least in UK law. but otherwise, looks like good work to me!
cheers, Maf. On Monday, 4 September 2017 15:20:57 BST Christopher Lam wrote: > 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 -- Maf. King PGP Key fingerprint = 8D68 A91F 733B 2C1F 43B7 2B7C E591 E8E1 0DE7 C542 _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
