Re: Users - Users - tax functionality

Posted by Cezar Mihaila on
URL: http://ofbiz.116.s1.nabble.com/Users-tax-functionality-tp138468p138481.html

Hi,

It seems that there are certain locations, such as Germany, where is a
common practice to apply the overall sales tax on an order/ invoice
based on the "main" product/ line item in the transaction.
The "main" product is not necessary the most expensive one.

For example, if you have an order like

1. Item A 50 euro
2. Accesory to Item A 20 euro
3. Service fees for Item A 60 euro

and VAT for item A is X% while VAT for Service fees is Y%, then -
somehow in an arbitrary way - apply X% tax to the whole order.

We had the explicit requirement to implement such functionality for our
client but we've managed to convince him that calculating taxes by line
items is also acceptable from the German accountants point of view.

The client wasn't happy but accepted the solution.

We found it's easier to make the client change his mind then making the
OfBiz adjustments for dealing with such business logic.

Cezar

Ray wrote:

> The UK certainly does require the breakdown, this being an extract from
> d'rules:-
>
> 16.3.1 General
> VAT invoices must show:
> ·  an identifying number;
> ·  your name, address and VAT registration number;
> ·  the time of supply (tax point);
> ·  date of issue (if different to the time of supply);
> ·  your customer’s name (or trading name) and address;
> ·  the type of supply (see 16.3.2 below); and
> ·  a description which identifies the goods or services supplied.
> For each description, you must show:
> ·  the quantity of goods or extent of the services;
> ·  the charge made, excluding VAT;
> ·  the rate of VAT;
> ·  the total charge made, excluding VAT;
> ·  the rate of any cash discount offered;
> ·  each rate of VAT charged and the amount of VAT charged at each rate and shown in sterling; and
> ·  the total amount of VAT charged, shown in sterling.
>
>
> Ray
>
>
> Daniel Kunkel wrote:
>
>
>>Hi Jacopo
>>
>>I think we may be a better way of going about this...  Is there anyone
>>who ever needs the tax calculations broken out?
>>
>>Although the software currently calculates tax on an item by item basis,
>>I do not believe that this is standard practice, even in the United
>>States.
>>
>>Instead, could the functionality be changed to perform the aggregated
>>tax calculations universally, as I believe that this is also an
>>acceptable way of calculating taxes in the United States?
>>
>>Thanks
>>
>>Daniel
>>
>>
>>On Tue, 2006-04-11 at 11:38 +0200, Jacopo Cappellato wrote:
>>
>>
>>
>>>Hi Hans,
>>>
>>>unfortunately I have not still implemented this.
>>>The idea (as suggested by David Jones) is to add a flag in the
>>>TaxAuthority entity to specify if the tax should be applied to the
>>>invoice total or to each invoice items (as is now).
>>>
>>>There is a quick way to implement the calculation:
>>>1) leave the sales tax adjustments as are now, i.e. one adjustment for
>>>each order/invoice item
>>>2) in the order/invoice reports, hide the item adjustments and show only
>>>the total sales tax at the end of the report
>>>3) in this way there could be approx errors (a sales tax amount
>>>calculated as a percentage of an invoice total could be slightly
>>>different from a sales tax amount calculated as the sum of the sales tax
>>>amounts of each item); to solve this, in the createInvoiceForOrder
>>>service, we could create an offsetting adjustment to fix the approx errors.
>>>
>>>What do you all think of this?
>>>
>>>Jacopo
>>>
>>>
>>>
>>>Hans Bakker wrote:
>>>  
>>>
>>>
>>>>David, Jacopo,
>>>>
>>>>i had a quick look at the new tax functionality and the page in the wiki but
>>>>could not see if it can be used to automatically calculate sales tax on an
>>>>invoice for customers in a certain geolocation
>>>>
>>>>I need to specify 19% sales tax on the total invoice for every customer in the
>>>>Netherlands. Will there be an extra invoice item added for this purpose?
>>>>
>>>>When possible can you give  me a few lines explanation how to do
>>>>that?
>>>>
>>>>Regards,
>>>>Hans Bakker
>>>>ANT Websystems Co.,Ltd (http://www.antwebsystems.com)
>>>>
>>>>If you want to verify that this message really originates from
>>>
>>>>from the above person, download the public key from:
>>>
>>>>http://www.antwebsystems.com/hbakkerAntwebsystems.asc
>>>>
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>>>>
>>>
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>
>  
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