Value-Added Taxes: To Create a Statistical VAT and Inclusive VATs

You use the Taxes (TX205000) form to create a value-added tax of any modification.

Before You Proceed

Make sure that the VAT Reporting feature is enabled in your system on the Enable/Disable Features (CS100000) form.

Note:

Consider creating a convention for tax names to specify in the Description box. You may find it convenient to specify the tax rate percentage directly in the tax name—for instance, VAT_16% for a tax with a 16% rate.

To Create a Statistical VAT

Open the Taxes (TX205000) form.
On the form toolbar, click Add New Record.
On the Tax Settings tab (Summary area), proceed as follows:
1. In the Tax ID box, type the unique identifier to be used for the tax.
2. If needed, in the Description box, type a description of the tax, to help users easily identify tit.
3. In the Tax Type box, select VAT.
4. Select the Statistical VAT check box.
5. In the Calculation Rule box, select one of the following calculation methods for the tax:
  - Inclusive Line-Level
  - Exclusive Line-Level
  - Compound Line-Level
  - Exclusive Document-Level
  - Compound Document-Level
6. If needed, select the Exclude from Tax-on-Tax Calculation check box if you need to exclude the tax from the taxable amount for calculating second-level taxes.
7. If needed, in the Tax Agency box, select the tax agency to which you will report the tax. Leave the box blank if you have not configured a tax agency account yet, or do not plan to prepare a tax report in MYOB Acumatica.
On the Tax Schedule tab, do the following for every set of dates and rates to be added for the tax:
1. In the Start Date column of the row, specify the date when the tax becomes effective.
2. In the Tax Rate column, specify 0 for the output tax.
3. In the Reporting Group column, select the Output reporting group that was defined for the tax agency and was intended for this tax.
4. Click Add Row again.
5. In the Tax Rate column of the new row, specify 0 for the input tax.
6. In the Reporting Group column, select the Input reporting group that was defined for the tax agency and intended for this tax.
On the GL Accounts tab, perform the following instructions:
1. In the Tax Payable Account box, select the GL account to accumulate the tax amounts to be paid to the applicable tax agency.
2. In the Tax Payable Subaccount box, enter the number of the corresponding subaccount.
3. In the Tax Claimable Account box, select the GL account to accumulate the tax amounts to be claimed from the applicable tax agency.
4. In the Tax Claimable Subaccount box, enter the number of the corresponding subaccount.
On the form toolbar, click Save.

The statistical VAT tax is created in the system. Now you need to set up tax calculation across the system. For details, see Selecting Tax Calculation Methods.

To Create an Inclusive Document-Level Output VAT

Open the Taxes (TX205000) form.
On the form toolbar, click Add New Record.
On the Tax Settings tab, proceed as follows:
1. In the Tax ID box, type the unique identifier to be used for the tax.
2. Optional: In the Description box, type a description of the tax, to help users easily identify it.
3. In the Tax Type box, select VAT.
4. In the Calculation Rule box, select Inclusive Document-Level.
5. Optional: In the Tax Agency box, select the tax agency to which you will report the tax. Leave the box blank if you have not configured this tax agency account yet, or do not plan to prepare a tax report in MYOB Acumatica.
On the Tax Schedule tab, for every set of dates and rates to be added for the tax, add a row and do the following:
1. In the Start Date column of the row, specify the date when the tax becomes effective.
2. In the Tax Rate column, specify the rate of the VAT that generally applies to specific sales.
3. In the Reporting Group column, select the Output reporting group that was defined for the tax agency and intended for this tax.
On the GL Accounts tab, perform the following instructions:
1. In the Tax Payable Account box, select the GL account to accumulate the tax amounts to be paid to the applicable tax agency.
2. In the Tax Payable Subaccount box, enter the corresponding subaccount.
3. In the Tax Claimable Account box, select the GL account to accumulate the tax amounts to be claimed from the applicable tax agency.
4. In the Tax Claimable Subaccount box, enter the number of the corresponding subaccount.
On the form toolbar, click Save.

To Create an Inclusive Document-Level Input VAT

Open the Taxes (TX205000) form.
On the form toolbar, click Add New Record.
On the Tax Settings tab, proceed as follows:
1. In the Tax ID box, type the unique identifier to be used for the tax.
2. Optional: In the Description box, type a description of the tax, to help users easily identify it.
3. In the Tax Type box, select VAT.
4. In the Calculation Rule box, select Inclusive Document-Level.
5. Optional: In the Tax Agency box, select the tax agency to which you will report the tax. Leave the box blank if you have not configured this tax agency account yet, or do not plan to prepare a tax report in MYOB Acumatica.
On the Tax Schedule tab, for every set of dates and rates to be added for the tax, add a row and do the following:
1. In the Start Date column of the row, specify the date when the tax becomes effective.
2. In the Tax Rate column, specify the rate of the VAT that generally applies to specific purchases.
3. In the Reporting Group column, select the Input reporting group that was defined for the tax agency and intended for this tax.
On the GL Accounts tab, perform the following instructions:
1. In the Tax Payable Account box, select the GL account to accumulate the tax amounts to be paid to the applicable tax agency.
2. In the Tax Payable Subaccount box, enter the corresponding subaccount.
3. In the Tax Claimable Account box, select the GL account to accumulate the tax amounts to be claimed from the applicable tax agency.
4. In the Tax Claimable Subaccount box, enter the number of the corresponding subaccount.
On the form toolbar, click Save.