Just trying to understand it. How does the VAT applied to purchase? Is
purchase not some other party's sale and are they not responsible for
collecting tax on their sales? Here in India, we have VAT as well.
AFAIK, VAT is applied to the value added and not the sales prices
because part of the tax is already collected by the previous sale.
Raj
[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.
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
