VAT - requirements in different countires - HELP

[Marek Mosiewicz-2]

We gather requirements for VAT in different countries.

Who can help with requirements in EU and outside of EU.
Answering this questions would help to provide better
support for VAT in OfBiz

There are follwoing questions:
1. How VAT tax is determined ?
2. What kind of VAT exemption is available ?
3. Does purchase order always decrease VAT to be paid ?
(e.g. Invoice can be overdued for VAT purpose - recived too late,)
4. Is there VAT always decresed when invoice is booked
e.g. some special invoices decrease VAT in next month
5. Is there  sales VAT rate determined when invoice is available ?
(e.g. no requirements to wait for export document)
6.Is document name always "Invoice" ? Are ther any spiecial
types of document names , ?e.g. "Export Invoice", "EU Invoice" ?
7.What kind of reporing for VAT is required ?
Is it only summary for taxman or list of operations is also required
8.Have reporting to be grouped (by country/export or by stock/fixed assets)
?
9. What over taxes are applied for sale or purchase in your country ?
10. Maybe there are other requirements specific for Your country?

Resources:

http://docs.ofbiz.org/display/OFBTECH/OFBiz%27s+Tax+Authority+Data+Model
http://en.wikipedia.org/wiki/VAT

http://docs.ofbiz.org/display/OFBIZ/VAT
http://docs.ofbiz.org/display/OFBIZ/FAQ+-+Tips+-+Tricks+-+Cookbook+-+HowTo#FAQ-Tips-Tricks-Cookbook-HowTo-PricesWithVAT


Marek Mosiewicz
http://www.jotel.com.pl

[David Goodenough]

On Friday 04 July 2008, Marek Mosiewicz wrote:

> We gather requirements for VAT in different countries.
>
> Who can help with requirements in EU and outside of EU.
> Answering this questions would help to provide better
> support for VAT in OfBiz
>
> There are follwoing questions:
> 1. How VAT tax is determined ?
> 2. What kind of VAT exemption is available ?
> 3. Does purchase order always decrease VAT to be paid ?
> (e.g. Invoice can be overdued for VAT purpose - recived too late,)

In the UK as a company you register for VAT and get a VAT number.  When you
do so (or at a later stage) you can register to process VAT in one of two
ways.  Either on the invoices/purchase orders issues/received, or on a cash
basis (i.e. when you receive the cash or send it out).
> 4. Is there VAT always decresed when invoice is booked
In UK yes unless you are cash accounting
> e.g. some special invoices decrease VAT in next month
In UK no
> 5. Is there  sales VAT rate determined when invoice is available ?
> (e.g. no requirements to wait for export document)
In UK if you are exporting to a non-EU country then rate always zero, if
you are exporting to an EU VAT registered entity (and you have their
VAT registration number) then the rate is zero, otherwise the nature of
the item sets the rate (i.e. food is zero rated unless being consumed on
the premises).  Note also that there is a distinction between an item that
is VAT exempt and a zero rated item - I do not understand the distinction
but accountants keep telling me it is important.
> 6.Is document name always "Invoice" ? Are ther any spiecial
> types of document names , ?e.g. "Export Invoice", "EU Invoice" ?
I don't understand the question.  What does it matter what it is called
if it is an invoice like (or purchase order like) object.
> 7.What kind of reporing for VAT is required ?
> Is it only summary for taxman or list of operations is also required
In the UK only a summary and only needed every three months.
> 8.Have reporting to be grouped (by country/export or by stock/fixed assets)
> ?
In UK you only need to separate UK from EU from rest of world.
> 9. What over taxes are applied for sale or purchase in your country ?
I don't understand the question - what are "over taxes".

> 10. Maybe there are other requirements specific for Your country?
>
> Resources:
>
> http://docs.ofbiz.org/display/OFBTECH/OFBiz%27s+Tax+Authority+Data+Model
> http://en.wikipedia.org/wiki/VAT
>
> http://docs.ofbiz.org/display/OFBIZ/VAT
> http://docs.ofbiz.org/display/OFBIZ/FAQ+-+Tips+-+Tricks+-+Cookbook+-+HowTo#
>FAQ-Tips-Tricks-Cookbook-HowTo-PricesWithVAT
>
>
> Marek Mosiewicz
> http://www.jotel.com.pl

[Marek Mosiewicz-2]

>> 6.Is document name always "Invoice" ? Are ther any spiecial
>> types of document names , ?e.g. "Export Invoice", "EU Invoice" ?
> I don't understand the question.  What does it matter what it is called
> if it is an invoice like (or purchase order like) object.
I mean name printed on invoice. In Poland export invoice should have printed
"Export Invoice" on it.
.
>> 9. What over taxes are applied for sale or purchase in your country ?
> I don't understand the question - what are "over taxes".
Misspelling . I mean other taxes.

Marek Mosiewicz
http://www.jotel.com.pl

[David Goodenough]

On Friday 04 July 2008, Marek Mosiewicz wrote:
> >> 6.Is document name always "Invoice" ? Are ther any spiecial
> >> types of document names , ?e.g. "Export Invoice", "EU Invoice" ?
> >
> > I don't understand the question.  What does it matter what it is called
> > if it is an invoice like (or purchase order like) object.
>
> I mean name printed on invoice. In Poland export invoice should have
> printed "Export Invoice" on it.
In the UK as far as I know there is no requirement for such differentiation.
> .
>
> >> 9. What over taxes are applied for sale or purchase in your country ?
> >
> > I don't understand the question - what are "over taxes".
>
> Misspelling . I mean other taxes.
In the UK none.
>
> Marek Mosiewicz
> http://www.jotel.com.pl

[Johnny Kewl]

----- Original Message -----
From: "Marek Mosiewicz" <[hidden email]>
To: <[hidden email]>
Sent: Friday, July 04, 2008 12:32 PM
Subject: VAT - requirements in different countires - HELP

> We gather requirements for VAT in different countries.
>
> Who can help with requirements in EU and outside of EU.
> Answering this questions would help to provide better
> support for VAT in OfBiz
>
> There are follwoing questions:
> 1. How VAT tax is determined ?
> 2. What kind of VAT exemption is available ?
> 3. Does purchase order always decrease VAT to be paid ?
> (e.g. Invoice can be overdued for VAT purpose - recived too late,)
> 4. Is there VAT always decresed when invoice is booked
> e.g. some special invoices decrease VAT in next month
> 5. Is there  sales VAT rate determined when invoice is available ?
> (e.g. no requirements to wait for export document)
> 6.Is document name always "Invoice" ? Are ther any spiecial
> types of document names , ?e.g. "Export Invoice", "EU Invoice" ?
> 7.What kind of reporing for VAT is required ?
> Is it only summary for taxman or list of operations is also required
> 8.Have reporting to be grouped (by country/export or by stock/fixed
> assets) ?
> 9. What over taxes are applied for sale or purchase in your country ?
> 10. Maybe there are other requirements specific for Your country?
>
> Resources:

South Africa I think is much the same as the UK... except not all food items
are zero rated.

An there is no concept of EU... AU not there yet... but I'm pretty sure
trading in guns, smuggling, and corruption are zero rated ;)
Typical receipt here has subtotal, vat, zero rated item total, total,
bribe...;)

In Zimbabwe its even more specialized... Pay with cash... no need for cc or
check, they left the country... but the reciept must be able to print.
Bread 100,000,000 and 6 hours later 200,000,000
The till must be able to talk... because people cant say the total... cash
draws have to be very very big, so when the person pays they can back up the
truck to offload the money, or just give you their bycycle, bannana's,
etc...and if one can stack the reciept printer with 10,000 dollar bills,
thats cheaper than printing on paper... maybe offbiz should just say "not
dictator proofed" ;)

[Rashko Rejmer]

Hi all,
Maybe this is a little bit out of the topic but it is connected to VAT
implementation.

In Colombia applies Withholding of VAT tax. It is called "retention at
the source". Part of calculated VAT adjustments are not payed(retained)
by the buyer. The value of the retention at source depends on the
relationship between the companies(payee and payer).

The order and invoice total amounts should include the full amount of
the tax, not only the part that issuer will pay to the tax authority.
The invoice also should contain information about the amount of the
retained tax amounts.

If someone else also have similar needs, I will be glad to get involved
in the implementation.

Regards,
Rashko Rejmer

[Jacques Le Roux]

Please Rashko,

Could you please add this comment in Wiki requirements VAT page http://docs.ofbiz.org/display/OFBIZ/VAT ?

Thanks

Jacques

From: "Rashko Rejmer" <[hidden email]>

> Hi all,
> Maybe this is a little bit out of the topic but it is connected to VAT
> implementation.
>
> In Colombia applies Withholding of VAT tax. It is called "retention at
> the source". Part of calculated VAT adjustments are not payed(retained)
> by the buyer. The value of the retention at source depends on the
> relationship between the companies(payee and payer).
>
> The order and invoice total amounts should include the full amount of
> the tax, not only the part that issuer will pay to the tax authority.
> The invoice also should contain information about the amount of the
> retained tax amounts.
>
> If someone else also have similar needs, I will be glad to get involved
> in the implementation.
>
> Regards,
> Rashko Rejmer
>

[brijesh m]

Hi friends,
how much time will it take to incorporate all these VAT requirements and functionalities in OFBIZ. Is it due for the next release or is there any patch work planned for it. Can I post the requirements for INDIAN VAT system.

Thanks
Brijesh M.

Marek Mosiewicz <[hidden email]> wrote: We gather requirements for VAT in different countries.

Who can help with requirements in EU and outside of EU.
Answering this questions would help to provide better
support for VAT in OfBiz

There are follwoing questions:
1. How VAT tax is determined ?
2. What kind of VAT exemption is available ?
3. Does purchase order always decrease VAT to be paid ?
(e.g. Invoice can be overdued for VAT purpose - recived too late,)
4. Is there VAT always decresed when invoice is booked
e.g. some special invoices decrease VAT in next month
5. Is there  sales VAT rate determined when invoice is available ?
(e.g. no requirements to wait for export document)
6.Is document name always "Invoice" ? Are ther any spiecial
types of document names , ?e.g. "Export Invoice", "EU Invoice" ?
7.What kind of reporing for VAT is required ?
Is it only summary for taxman or list of operations is also required
8.Have reporting to be grouped (by country/export or by stock/fixed assets)
?
9. What over taxes are applied for sale or purchase in your country ?
10. Maybe there are other requirements specific for Your country?

Resources:

http://docs.ofbiz.org/display/OFBTECH/OFBiz%27s+Tax+Authority+Data+Model
http://en.wikipedia.org/wiki/VAT

http://docs.ofbiz.org/display/OFBIZ/VAT
http://docs.ofbiz.org/display/OFBIZ/FAQ+-+Tips+-+Tricks+-+Cookbook+-+HowTo#FAQ-Tips-Tricks-Cookbook-HowTo-PricesWithVAT


Marek Mosiewicz
http://www.jotel.com.pl




       

[Jacques Le Roux]

From: "brijesh m" <[hidden email]>
> Hi friends,
> how much time will it take to incorporate all these VAT requirements and functionalities in OFBIZ.
We have no idea yet. Remember it's a community driven project, nobody is acting as project manager.

> Is it due for the next release or is there any patch work planned for it.

We have even not planned when the next release will be freezed... For the moment the community is focused on
1. Splitting the framework
2. Enhancing the UI
3. The OFBiz symposium at the ApacheCon USA 2008

>Can I post the requirements for INDIAN VAT system.

Sure, you are welcome, feel free to do so

Jacques

>
> Thanks
> Brijesh M.
>
> Marek Mosiewicz <[hidden email]> wrote: We gather requirements for VAT in different countries.
>
> Who can help with requirements in EU and outside of EU.
> Answering this questions would help to provide better
> support for VAT in OfBiz
>
> There are follwoing questions:
> 1. How VAT tax is determined ?
> 2. What kind of VAT exemption is available ?
> 3. Does purchase order always decrease VAT to be paid ?
> (e.g. Invoice can be overdued for VAT purpose - recived too late,)
> 4. Is there VAT always decresed when invoice is booked
> e.g. some special invoices decrease VAT in next month
> 5. Is there  sales VAT rate determined when invoice is available ?
> (e.g. no requirements to wait for export document)
> 6.Is document name always "Invoice" ? Are ther any spiecial
> types of document names , ?e.g. "Export Invoice", "EU Invoice" ?
> 7.What kind of reporing for VAT is required ?
> Is it only summary for taxman or list of operations is also required
> 8.Have reporting to be grouped (by country/export or by stock/fixed assets)
> ?
> 9. What over taxes are applied for sale or purchase in your country ?
> 10. Maybe there are other requirements specific for Your country?
>
> Resources:
>
> http://docs.ofbiz.org/display/OFBTECH/OFBiz%27s+Tax+Authority+Data+Model
> http://en.wikipedia.org/wiki/VAT
>
> http://docs.ofbiz.org/display/OFBIZ/VAT
> http://docs.ofbiz.org/display/OFBIZ/FAQ+-+Tips+-+Tricks+-+Cookbook+-+HowTo#FAQ-Tips-Tricks-Cookbook-HowTo-PricesWithVAT
>
>
> Marek Mosiewicz
> http://www.jotel.com.pl
>
>
>
>
>