Example of Reporting Transactions Based on Tax Point Basis
The following scenario illustrates how transactions with tax point basis as payment are reported.
Scenario
You have an invoice for 100 EUR on 1-Apr-2014 with a tax rate of 40%. The line amount is 60 EUR, and the tax amount is 40 EUR.
The following payments are made:
-
On 1-May-2014, a partial payment of 20 EUR
-
On 1-Jun-2014, a final payment of 80 EUR
The following tables show the reporting differences between tax point date and accounting date across reporting periods.
For the reporting period of 01-Apr-2014 to 30-Apr-2014:
|
Reporting Basis |
Tax Point Date |
Taxable Amount |
Tax Amount |
Notes |
|---|---|---|---|---|
|
Tax Point Date |
Since no payment is made in April, there is nothing to report. |
|||
|
Accounting Date |
60 |
40 |
The invoice is created on 1-Apr-2014. |
For the reporting period of 01-May-2014 to 31-May-2014:
|
Reporting Basis |
Tax Point Date |
Taxable Amount |
Tax Amount |
Notes |
|---|---|---|---|---|
|
Tax Point Date |
01-May-2014 |
12 |
8 |
The partial payment of 20 EUR is prorated across the line and tax. |
|
Accounting Date |
The invoice was already accounted in April. |
For the reporting period of 01-Jun-2014 to 30-Jun-2014:
|
Reporting Basis |
Tax Point Date |
Taxable Amount |
Tax Amount |
Notes |
|---|---|---|---|---|
|
Tax Point Date |
01-Jun-2014 |
48 |
32 |
The balance payment of 80 EUR is prorated across the line and tax. |
|
Accounting Date |
The invoice was already accounted in April. |
For the reporting period of 01-Apr-2014 to 30-Jun-2014:
|
Reporting Basis |
Tax Point Date |
Taxable Amount |
Tax Amount |
Notes |
|---|---|---|---|---|
|
Tax Point Date |
01-May-2014 |
12 |
8 |
|
|
Tax Point Date |
01-Jun-2014 |
48 |
32 |
|
|
Accounting Date |
60 |
40 |
Tax reports allow you to choose different date ranges for reporting, such as accounting dates, transaction dates, or tax point basis. You can use the appropriate date range to compare your tax reports with general ledger, payables, or receivables reports.
When invoices with tax point basis as payment (deferred tax) are reported based on accounting or transaction dates, tax point basis has no relevance and tax point dates do not appear on the reports.