If I did not remember wrongly in Italy a company has to collect all the Sales Tax and Purchase Tax and pay to the government the difference between those two amounts. In my opinion the VAT tax has to be calculated and shown (with tax included or excluded) at Order Item level because is it possible that for a order item we will have different tax rates or tax exemption (tax rate = 0). For example if a stationer sell two differents products like that:
Order Item 1 Newspaper Price 1,00 Tax 0,00* Total 1,00 Order Item 2 Book Accounting Best Practices Price 15,00 Tax 3,00 Total 18,00 Order Total Tax Rates Amount To Tax Tax Amount 0% 0,00 0,00 20% 15,00 3,00 Total 18,00 * = tax already included in the price Thanks Marco > > On Feb 4, 2008, at 11:26 PM, Jacopo Cappellato wrote: > > > * tax should be computed and paid also for purchase orders > > ... > > > 2) implement automatic tax calculation for purchase orders > > With sales tax in the USA the selling party is responsible for > collecting tax on behalf of the government (city, county, state, or > federal). Is that also the case with VAT? My guess is that it is, but > I'm not sure. > > The reason I'm thinking about this is there is a reason we don't > calculate tax for purchase orders: it is the responsibility of the > vendor to calculate that tax and tell the purchaser what the tax > liabilities are. > > -David > >