Viewing VAT and SUT Information

This topic discusses how to view VAT and SUT information.

Page Name

Definition Name

Usage

Work Order VAT Page

SPF_WO_VAT

View VAT locations and defaults.

VAT defaults can be edited if purchase orders are not integrated with work orders.

Work Order Sales/Use Tax Information Page

SPF_WO_SUT

View SUT information.

SUT information can be edited if purchase orders are not integrated with work orders.

Use the Work Order VAT page (SPF_WO_VAT) to view VAT locations and defaults.

Navigation:

Click the VAT/Intrastat button on the Work Order - Cost page.

Use this page to review the VAT that appears by default for the work order. If the VAT information needs to be updated, update it on the generated purchase order before releasing the work order. Upon releasing the work order, the purchase order VAT information is copied on the work order where it is view only.

Note: You can edit the VAT defaults only if purchase orders are not integrated with work orders.

Because complex algorithms are used to obtain the VAT defaults, avoid manually changing these values as far as possible.

Field or Control

Description

Return to Services Work Order

Click to return to the Services Work Order page.

Expand All Sections

Click the expand button to scroll to and access every section on the page. You can also expand one or more sections by clicking the arrow next to the section's name.

Collapse All Sections

Click to collapse all sections that display only the header information. If you expand one or more sections, you can click the arrow next to the section's name to collapse the section.

Field or Control

Description

Physical Nature

Indicates whether an object is a good or a service. Many countries are required to report the sale and purchase of goods separately from services.

Note: Because these are service work orders, physical nature should always be Services, and you won't need to change it.

VAT Locations

Field or Control

Description

Location Country

Displays the PeopleSoft Purchasing business unit bill to location country.

Location State

Displays the PeopleSoft Purchasing business unit bill to location state.

Supplier Location Country

Displays the supplier's order from location country.

Supplier Location State

Displays the supplier's order from location state.

Service Performed Country

Depending on the services performed option setting in the PeopleSoft Purchasing defaulting hierarchy (for example, on the supplier or business unit), here are some ways in which the system can set the value for this field:

  • If the option specifies the ship from location, this field is set to the supplier's ship from location country

  • If the option specifies the ship to location, this field is set to the ship to location country.

  • If the option specifies the buyer's location, this field is set to the PeopleSoft Purchasing business unit bill to location country.

  • If the option specifies the suppliers location, this field is set to the supplier's order from location country.

Service Performed State

This value appears only if the service performed country requires that VAT be tracked by state or province. Depending on the services performed setting in the PeopleSoft Purchasing default hierarchy (for example, on the supplier or business unit), the system sets the following values for this field:

  • If services performed specifies the ship from location, this field is set to the supplier's ship from location state.

  • If services performed specifies the ship to location, this field is set to the ship to location state.

  • If services performed specifies the buyer's location, this field is set to the PeopleSoft Purchasing business unit bill to location state.

  • If services performed specifies the suppliers location, this field is set to the supplier's order from location state.

Ship From Country

Displays the supplier's ship from location country. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

Ship From State

If the ship to country is defined as tracking VAT by state and province, it displays the supplier's ship from location state. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

Ship To Country

Displays the ship to location country. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

Ship To State

If the ship to country is defined as tracking VAT by state and province, the system displays the ship to location state. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

Reviewing VAT Defaults

Use this group box to view VAT defaults. You can only update VAT defaults if purchase orders are not integrated with work orders.

Field or Control

Description

Service Type

The system displays the VAT service type of Freight or Other. The value in this field determines whether or not the special rules for freight transport within the European Union (EU) apply.

Place of Supply Driver

Displays the usual place of supply (the place where VAT is usually liable) for the service. This value is used to help determine the place of supply country and the VAT treatment. Values are Buyer's Countries, Supplier's Countries or Where Physically Performed.

Reporting Country

Displays the country for which this VAT is to be reported. This is the VAT entity and VAT registration country that determines many of the VAT defaults.

Defaulting State

If the reporting country requires that VAT be tracked by state or province, this field displays the state within the reporting country that is used to retrieve values from the VAT Defaults table.

Supplier Registration Country and Supplier Registration ID

Displays the registration country and ID of the supplier.

Exception Type

Displays the exception granted to the VAT entity. Values are None, Exonerated, or Suspended. This value is specified on the VAT entity registration.

Certificate ID

If applicable, displays the ID of the VAT exception certificate that may have been issued to the VAT entity.

Calculate at Gross or Net

Indicates how VAT is calculated. The default value comes from the VAT entity driver. Values are:

  • Gross: The system calculates VAT before it applies any early payment discounts.

  • Net: The system calculates VAT after it deducts early payment discounts. If there are two percentage discounts, the system uses the larger of the two when it calculates VAT. The system does not use discount amounts, only discount percentages.

Recalculate at Payment

Select this check box to enable the recalculation of VAT at payment time to allow for any early payment discounts, if you are calculating VAT at gross. This causes the system to adjust the VAT amount at the time of payment if the discount has been taken. This is set on the VAT entity driver.

Declaration Point

For a good or a service, displays when you want VAT transaction information to be recognized for reporting purposes. Values are:

  • Invoice: VAT is recognized at time of invoice.

  • Payment: VAT is recognized at time of payment.

  • Delivery: VAT is recognized on delivery.

This value may be set at four levels in the VAT hierarchy: VAT entity registration, purchase order options, supplier, and supplier location.

VAT Rounding Rule

Displays the VAT rounding rule. The default value comes from the VAT country, VAT entity registration, supplier, or supplier location driver. Values are:

  • Natural Round: Amounts are rounded normally (up or down) to the precision specified for the currency code. For example, for a currency defined with two decimal places, 157.4659 would round up to 157.47, but 157.4649 would round down to 157.46.

  • Round Down: Amounts are rounded down. For example, for a currency defined with two decimal places, 157.4699 would round down to 157.46.

  • Round Up: Amounts are rounded up with a rounding precision to one additional decimal place. For example, for a currency defined with 2 decimal places, 157.4659 would round up to 157.47, but 157.4609 would round down to 157.46.

Use Type

Determines the split between recoverable (taxable) and nonrecoverable (nontaxable) VAT.

For the Canadian public sector, the use type also determines the rebate of the nonrecoverable VAT. VAT rebates are calculated based on statutory rebate rates that are established for each public service body.

The value comes from the VAT defaulting hierarchy, from the item, item business unit, item category, supplier location, supplier, or purchasing options.

Include Freight

If selected, the system includes any freight amounts in the VAT basis by calculating VAT on the merchandise amount, plus any freight amount. This option is only available for exclusive VAT calculation. The value comes from the VAT entity registration driver.

Include Miscellaneous

If selected, the system includes any miscellaneous charge amounts in the VAT basis by calculating VAT on the merchandise amount, plus any miscellaneous charge amount. This option is available only for exclusive VAT calculation. The value comes from the VAT entity registration driver.

Place of Supply Country

For services, displays the country in which the VAT is liable. The default value comes from a complex algorithm.

Treatment

Displays the VAT treatment, based on a complex algorithm. Values are:

  • Domestic Goods Purchase: If the ship from and ship to countries are the same, and the supplier is registered for VAT, the transaction is treated as domestic.

  • Domestic Services Purchase: If the buyer and seller are both located in the country where the VAT is liable, the transaction is treated as domestic.

  • EU Goods Purchase: If the ship from and ship to countries are different, the system determines whether both countries are located within the EU.

    If so, the system looks at the VAT registration for each trading partner to determine whether the transaction should be treated as an intra-EU purchase, domestic, or outside the scope of VAT.

  • EU Services Purchase: If each trading partner is located and registered in different EU countries, and the VAT on a service is liable in the buyer's country, the transaction is treated as a self-assessed EU services purchase.

  • Self-Assess Goods Import: If the ship from country is different from the ship to country and either or both of the countries are located outside of the EU, and the supplier is not registered in the ship to country, the transaction would be treated as an import.

    If the option on the entry in the VAT Country table for the VAT reporting country indicates that VAT on imports should be self-assessed, the transaction is treated as a self-assess goods import, and both input and output VAT are recorded.

  • Self-Assess Services Import: If each trading partner is located and registered in different countries, and the VAT on a service is liable in the buyer's country, the transaction is treated as a self-assessed services import.

  • Zero-rated Goods Import: If the ship from country is different from the ship to country and either or both of the countries are located outside of the EU, and the supplier is not registered in the ship to country, the transaction would be treated as an import.

    If the option on the entry in the VAT Country table for the VAT reporting country indicates that only input VAT should be recorded on imports, the transaction is treated as a zero-rated goods import.

  • Outside of Scope: If the supplier is not registered for VAT, or if the VAT is liable in a country other than the VAT reporting country, the transaction is treated as outside the scope of VAT.

  • No VAT Processing: For transactions where the physical nature is goods, if the ship to country has not been defined as a VAT country and the VAT reporting country on the transaction is blank, no VAT information is recorded.

Within PeopleSoft, detail VAT treatment values on the transaction lines are used for applying the precise defaults applicable to the transaction lines. The treatment is determined based the rules applicable to the transaction.

Note: Treatments values related to goods do not apply for PeopleSoft Services Procurement.

Applicability

Displays the VAT status, which comes from an algorithm. Values are:

  • Taxable

  • Exempt (not subject to VAT)

  • Outside of Scope of VAT

  • Suspended

  • Exonerated

Record Output VAT

Select this check box to enable entry of vouchers where VAT is not included on the invoice but is payable to the VAT authority rather than the supplier. In this case, you are accounting for both input and output VAT for the purchase. This is the case for an intra-EU acquisition or when you must account for output VAT on a service supplied by a foreign supplier. This is also referred to as self-assessing for VAT. The value comes from an algorithm that uses the treatment and applicability to retrieve the applicable value from the VAT system setup data that PeopleSoft delivers.

VAT Code

Displays the VAT code that defines the rate at which VAT is calculated for this line.

Transaction Type

Displays the code that categorizes and classifies this transaction for VAT reporting and accounting.

Adjust/Reset VAT Defaults

Any changes that you make to fields on this page may affect VAT defaults on this page. For accuracy and consistency, use the following fields to adjust affected VAT defaults or to reset all VAT defaults. Adjusting or resetting VAT defaults only affect fields within the VAT Defaults group box.

Field or Control

Description

Adjust Affected VAT Defaults

Click this button to have the system adjust the VAT defaults that are affected by the changes. All changes that you have made to VAT defaults on this page that affect other VAT defaults on this page are retained.

Click the i button to list the fields to be adjusted.

Note: Always click the Adjust Affected VAT Defaults button after changing any defaults on the VAT page.

Levels

Enables you to specify the levels within the requisition transaction hierarchy to reset when you click the Reset All VAT Defaults button. Values are:

  • All lower levels: Resets all VAT defaults at lower levels for this page, namely the requisition distribution level.

  • This and all lower levels: Resets all VAT defaults on this page and at any lower levels of this page.

  • This level only: Resets all VAT defaults on this page.

Reset All VAT Defaults

Click to have the system reset the VAT defaults based on the levels value that you selected. Any changes that you have previously made to VAT defaults will be lost.

Note: Reset completely redetermines the VAT defaults. This does not necessarily mean they are to be reset to their original values. For example, the user may not have changed any VAT default values, but if a VAT driver field has changed, then clicking Reset redetermines all defaults based on the new driver value.

Use the Work Order Sales/Use Tax Information page (SPF_WO_SUT) to view SUT information.

Navigation:

Click the Sales/Use Tax button on the Work Order - Cost page.

Use this page to review the SUT information for the work order. If the SUT information must be updated, update it on the generated purchase order before releasing the work order. Upon releasing the work order, the purchase order SUT information is copied onto the work order where it is viewed.

Note: You can edit the SUT information only if purchase orders are not integrated with work orders.

Field or Control

Description

Ultimate Use Code

Enter an ultimate use code to override the default tax rate for a location.

Sales/Use Tax Exception Type and SUT Excptn Cert (SUT exemption certificate)

Defaults from the ship to location for the SUT destination. SUT exception type values include Direct Pay, Exempt/Exonerated, and None.

Field or Control

Description

Calculate SUT (calculate sales and use tax)

Click to calculate the SUT using the changes that you made on the page.

See Understanding PeopleSoft Tax Solutions.

Calculation Parameters

Field or Control

Description

Include VAT (include value-added tax)

This setting is relevant if each line has separate tax code values for SUT and VAT, in which case it is possible to have both on a given line resulting in a tax-on-tax situation. In these instances, the system calculates VAT, then SUT, either on the net-extended amount for the line or on the sum of the net-extended amount and VAT amount.

If this option is selected, it indicates that the VAT amount needs to be taxed and the system adds the VAT amount to the net-extended amount before calculating SUT.

Note: The Include Vat calculation parameter appears by default from the Ship To Location Sales/Tax setup page.