Under certain conditions, purchase VAT is calculated and paid by the vendor if the vendor is registered in Lithuania as a VAT payer. These conditions include:

• The company is selling wood and woodenwares, such as logs, planks, or beams.

• The company is selling ferrous/non-ferrous items or products, including waste or debris.

• The company is bankrupt.

The purchase documents issued by United VAT companies are marked in the purchase order to indicate that the VAT is paid by the United VAT company.

1. Click Accounts payable> Common Forms> Purchase Order Detailsto open the Purchase ordersform.

2. Press CTRL+N to create a new purchase order.

   Note
   For more information, see "Create a purchase order" in the Applications and Business Processes Help.

3. Click the Setuptab.

4. Select the United VAT invoicecheck box to indicate that the VAT is paid by the United VAT company for the vendor.

   Note
   The check box is selected by default if the United VAT invoicecheck box is activated for the vendor in the Vendorsform.

5. Click the Setuptab in the lower pane.

6. In the Item sales tax groupfield, select the item sales tax group that has a negative sales tax code percentage.

7. In the Sales tax groupfield, select the sales tax group that has a negative sales tax code percentage.

8. Click Posting> Invoiceto post the purchase invoice.