Hi,
I should just add, AFAIK, Sales Tax is linked to an Expense GL account,
whereas VAT from Purchases/Sales is linked to Assets and Liabilities GL
accounts respectively
-Enrique
Jacopo Cappellato wrote:
David E Jones wrote:
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.
I think it is the same with VAT.
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.
I agree that setting the tax amount in the purchase invoice in OFBiz
can be done manually when the real purchase invoice is received from
the supplier; however, having an "automatic estimate" of the tax for
purchase orders/invoices could be a nice feature to have... but yes,
this is not really a difference between sales tax and vat and we can
postpone the discussion about this feature.
The only real difference that I can see is that with VAT you pay to
the government the difference between the tax collected from customers
(sales invoices) minus the tax paid to suppliers (purchase invoice).
With sales tax, you just pay the tax collected from customers; in
fact, companies that produce/distribute/sell items don't have to pay
the sales tax when they purchase because they are not end users
Is this a correct interpretation of the different nature of the two
taxes?
If this is true, then adding basic support for vat tax to OFBiz will
be a matter of creating the proper report.
Jacopo
-David
