Hi Jacopo, I had my Dutch company on a simple version of the ofbiz accounting system (no ledger) and this is exactly what i did. Separate the outgoing and incoming VAT from the purchase/sales invoice (invoiceItemType) and pay the difference to the taxman. These payments to the taxman should be considered as 100% 'outgoing' VAT so that a balance can be kept...
.....however....I only know the case in the Netherlands.... Here it is required to pay the VAT to the taxman monthly on invoices which have been sent out and received. It can however be that the sales invoice is not paid yet, but the tax needs to be paid....and with a 19% vat it can make cashflow problems... But that is no problem for the system.....so your explanation sounds good to me. Regards, Hans On Tue, 2008-02-05 at 07:26 +0100, Jacopo Cappellato wrote: > Hi, > > we have already discussed many times about the best way to implement VAT > taxes in OFBiz. > I did some research recently and I've found this page very interesting: > > http://en.wikipedia.org/wiki/Value_added_tax > > The most interesting aspect, in my opinion, is that, apart from the > differences in the way taxes in general are shown to the customers (e.g. > price with/without tax, as total or per item etc...), that, by the way > are very industry/country specific (and not really related to VAT), the > fundamental difference appears to be the following one: > > "Sales taxes are normally only charged on final sales to consumers. > VAT differs from a conventional sales tax in that VAT is levied on every > business as a fraction of the price of each taxable sale they make, but > they are in turn reimbursed VAT on their purchases, so the VAT is > applied to the value added to the goods at each stage of production." > > The "Example" paragraph illustrates very well the difference. > > Moving these concepts to OFBiz: > > Sales Tax: > * tax is computed and collected only for sales orders > * a (monthly) report summarizes the tax collected from customers (i.e > due to the Governemnt) > > VAT: > * tax is computed and collected only for sales orders (OK) > * tax should be computed and paid also for purchase orders > * a (monthly) report summarizes the tax collected from customers and the > tax paid to suppliers: the difference is the amount due to the Governemnt > > That said, in order to implement VAT tax in OFBiz we could: > 1) add a flag to mark the tax as "VAT Tax" (and distinguish it from > sales tax) > 2) implement automatic tax calculation for purchase orders > 3) implement the monthly report that filters taxes by the flag in point > 1 and shows the difference as described above > > This doesn't seem very complex; what do you think? > > Jacopo > > -- AntWebsystems.com: Quality OFBiz services for competitive rates.....
