VAT Overview and Configuring VAT Components

Value Added Tax (VAT) is a sales tax levied on the sale of goods and services. VAT is applied to invoices and/or customer bills. If you are paying VAT, you will want to pass the cost onto your customers where possible. Therefore, if you are using invoices and bills, you will want VAT calculated on each.

The following types of VAT exist. The configuration varies for each.

• Provincial: prominent in countries such as Australia and Canada
• European: assessed among the European Union countries. There may be a local VAT that applies to the movement of goods within a specific country or a cost moving goods from one country to another. For a country to be considered for European VAT calculation, it must be designated as a member of the European Union (EU). There is an EU Member check box on the Country Code.

Configure the Following VAT Components

• VAT Codes
• VAT Code Ordered Set (Provincal VAT only)
• Province Code Profiles (Provincal VAT only)
• VAT Outcome (European VAT only)
• VAT Configuration

How is VAT Calculated?

VAT is calculated as a percentage of the freight cost. The calculation can be triggered by manual actions or automation agent actions. The actions are available via the Payment Invoice and Billing managers. They are also available as actions for Invoice and Bill automation agents. The following actions exist:

• Calculate Provincial Tax
• Calculate VAT
• Calculate Manual VAT (European)

Viewing VAT

The calculated VAT results are visible from both the view and edit pages of the Invoice and Bill. On the edit pages, the VAT information is on both the header and line item pages.

• Billing Manager
• Invoice Manager