Setting Up Tax Code for German Deferred VAT
This feature requires the Deferred VAT SuiteApp
The following describes the features and steps to configure tax codes for deferred VAT.
Overview
When tax types for deferred VAT are configured, you need to set up your tax codes. Tax codes are required for creating journal entries with deferred VAT. NetSuite uses journal entries to record your deferred taxes into the correct tax account.
When the tax code is configured for use with deferred VAT, the Tax Rate, Deferred VAT box, and the Exclude from VAT Report box fields are automatically checked and cannot be edited.
You can set up an existing tax code for the deferred VAT. To create a new tax code, see Creating Tax Codes.
Configure Tax Codes For Deferred VAT
The following describes the steps to configure tax codes for deferred VAT.
To configure an existing tax code for deferred VAT:
-
Go to Setup > Accounting > Tax Codes.
-
Select a tax code to use.
-
Click Edit.
-
Select a tax type in the Tax Type field. This is the tax type configured for deferred VAT. See Setting Up Tax Types for Deferred VAT.
-
Check the Deferred VAT box.
-
Select a tax code in the Actual VAT Tax Code field. There are guidelines for this field. See Guidelines for Actual VAT Tax Code Field
-
Click Save.
Guidelines for Actual VAT Tax Code Field
When working with the Actual VAT Tax Code field, there are certain rules and field behavior to keep in mind:
-
Tax Codes with the following configuration will appear:
-
Tax codes with Deferred VAT checked.
-
Tax codes defined in the same nexus.
-
Tax codes defined for the same nexus.
-
Tax codes that include the subsidiary for which the actual tax code is being configured for.
-
-
Tax codes configured as Actual Tax Codes in other tax codes cannot be selected.
-
Tax rates of both the deferred VAT and the actual VAT tax codes should be equal. If you try to link an actual tax code with a deferred tax code with different rates, the configuration will not be saved.