Understanding VAT Calculations
This table is an example of VAT calculations:
| Expense Line | VAT Code | Reimbursement Amount |
|---|---|---|
|
1 |
10% |
110 EUR |
|
2 |
15% |
230 EUR |
|
3 |
20% |
300 EUR |
PeopleSoft Expenses always uses an Inclusive VAT calculation method. PeopleSoft Expenses subtracts any VAT amount calculated or entered from the reimbursement amount to obtain the VAT basis amount.
Using the expense line 2 from the previous example, you calculate the VAT basis amount as follows:
(VAT Basis Amount) = (Reimbursement Amt) / (1 + (VAT Code / 100))
(VAT Basis Amount) = (230 EUR) / (1 + (15/100)) = 200 EUR
If a receipt has a VAT amount of 35 EUR, enter 35 EUR in the VAT Override Amount field and click the Calculate button. The system recalculates the amounts as follows:
(VAT Basis Amount) = (Reimbursement Amt) − (VAT Override Amount)
VAT Basis Amount = (230 EUR) − (35 EUR) = 195 EUR
The VAT amount remains 35 EUR in this example.
The following table displays how all VAT amount fields are treated when you save for later or submit the expense report:
| Expense Line | Reimbursement Amount | VAT Code | VAT Calculated Amount | VAT Override Amount | VAT Basis Amount |
|---|---|---|---|---|---|
|
1 |
110 EUR |
10% |
10 |
- |
100 |
|
2 |
230 EUR |
15% |
30 |
35 |
195 |
|
3 |
300 EUR |
0% |
- |
- |
300 |