In Canada exempt is different from 0-rated as well. If you pay HST on goods/materials/services ultimately used to produce zero-rated (not exempt) goods/services, you wind up getting a refund. If you produce something exempt, you don’t. But I don’t know that it affects accounting. Perhaps if you produce both zero-rated and exempt, but I don’t know whether anyone does, then you’d need to figure out how to pro-rate your HST paid, I suppose.
> On Sep 4, 2017, at 10:40 AM, Maf. King <m...@chilwell.net> wrote: > > 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 <mailto:gnucash-user@gnucash.org> > https://lists.gnucash.org/mailman/listinfo/gnucash-user > <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. _______________________________________________ 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. 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