Purchases with Use Taxes: General Information

A use tax is a tax paid by the buyer on taxable items the buyer purchases. In MYOB Acumatica, the system calculates the use tax in vendor documents automatically.

Learning Objectives

In this chapter, you will learn how to do the following:

Create an AP bill with a use tax applied
Release the AP bill and review the GL transaction generated by the system
Prepare a new revision of a tax report and review the difference in the tax report revisions

Applicable Scenarios

You create an AP bill with a use tax when the vendor did not charge a sales tax on the purchase of taxable items.

Use Taxes

The system calculates the tax and taxable amounts by using the settings of each tax that corresponds to both the tax category of the specified inventory ID and the tax zone of the selected vendor. The system calculates the tax and taxable amounts for each line of the document or for the total document amount, depending on the settings of the applied tax (for details, see Use Taxes: Implementation Activity).

Note:

The use tax amount is not shown in the Tax Total box in the Summary area of the Bills and Adjustments (AP301000) form, and the system displays a warning that the use tax is excluded from Tax Total. The tax and taxable amounts can be reviewed on the Taxes tab of the Bills and Adjustments form.

After you have released the document, the system creates the corresponding GL transaction and records the tax and taxable amounts to the appropriate GL accounts.