You must set up the parameters for tax agent transactions in the general ledger module before you can create the tax agent transactions.

Set up the VAT operation code for the tax declaration

  1. Click General ledger> Setup> Sales tax> External> VAT operation codesto open the VAT operation codesform.

  2. In the VAT operation codefield, enter the operation code for the VAT declaration.

  3. In the Descriptionfield, enter a description of the transaction code.

  4. Press CTRL+S or close the form.

Set up the sales tax code for tax agent transactions

  1. Click General ledger> Setup> Sales tax> Sales tax codesto open the Sales tax codesform.

  2. Press CTRL+N to create a new tax code.

  3. In the Sales tax codefield, enter a code for sales tax.

  4. In the Settlement periodfield, select the time period for which the tax is calculated and paid to the tax authority.

  5. In the Ledger posting groupfield, select the ledger posting group for the sales tax code.

  6. On the Generaltab, in the Type of taxfield, select Standard VAT.

  7. In the VAT chargefield, select the source of VAT accrual from the following options:

    • From vendor funds- VAT payment is made from the vendor's income.

    • From own funds- VAT payment is made from the tax agent's funds.

  8. Click Valuesto open the Valuesform.

  9. In the Valuefield, enter the VAT percentage.

  10. Press CTRL+S or close the form.

    Note Note

    For more information, see "Sales tax code (form)" in the Applications and Business Processes Help.

  11. Click General ledger> Setup> Sales tax> Sales tax groupsto open the Sales tax groupsform.

  12. Press CTRL+N to create a sales tax group, and enter the necessary information.

    Note Note

    For more information, see "Sales tax groups (form)" in the Applications and Business Processes Help.

  13. On the Setuptab, in the Sales tax codefield, select the sales tax code created in steps 1 through 10.

    Note Note

    If you select the sales tax code for the From own fundsoption, the Exemptcheck box is selected by default on the Setuptab.

  14. Press CTRL+S or close the form.

  15. Click General ledger> Setup> Sales tax> Item sales tax groupsto open the Item sales tax groupsform.

  16. Press CTRL+N to create an item sales tax group, and enter the necessary information.

    Note Note

    For more information, see "Item sales tax groups (form)" in the Applications and Business Processes Help.

  17. On the Setuptab, in the Sales tax codefield, select the sales tax code created in steps 1 through 10.

  18. Press CTRL+S or close the form.

Set up a vendor tax authority

  1. Click General ledger> Setup> Sales tax> Sales tax authoritiesto open the Authorityform.

  2. Press CTRL+N to create a tax authority, and enter the required details.

    Note Note

    For more information, see "Sales tax authority (form)" in the Applications and Business Processes Help.

  3. In the Vendor accountfield, select the vendor who operates as the tax authority.

  4. Press CTRL+S or close the form.

    Note Note

    For more information, see "Set up a sales tax authority as a vendor" in the Applications and Business Processes Help.

See Also