Marco,
[EMAIL PROTECTED] wrote:
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.
yes
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).
Yes, I agree with you that calculating taxes (both for sales taxes and
vat) for each item is the right way to go: and OFBiz is already doing
this in the right way... no difference here between sales tax and vat,
no work required :-)
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
I don't think that the example of the Newspaper is correct: if the tax
applies, then we have to store the price in OFBiz without tax (e.g. €
0.83); the way the price is shown to the customer is another issue but
it is not really related to the VAT tax.
But this is true both for sales tax and for vat... no difference here
between the two taxes.
Jacopo
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
