Hi Adrian, Please see my comment(s) inline.
Regards, Pierre Smits *ORRTIZ.COM <http://www.orrtiz.com>* Services & Solutions for Cloud- Based Manufacturing, Professional Services and Retail & Trade http://www.orrtiz.com On Mon, Nov 10, 2014 at 3:30 PM, Adrian Stern <adrian.st...@unchained.ch> wrote: > Yes. Tax is not easy. You did understand me correctly and yes it is some > kind of subsidy scheme. > > I'm afraid I cannot follow you. Let me racap. > > Since i always bill the customer for the net amount plus 8% VAT - I should > configure that. This will fill my Tax account with the amounts due for the > different VAT Rates and also create me the correct invoice to bill the > customer. > Yes, in order to get correct invoicing and VAT collection from your customer you have to set the tax category and the appropriate percentage (8%). This will lead to GL transactions of the following kind: Debtors (accounts receivable): 108 debit (asset) VAT collected: 8 credit (liability) Turnover on sales: 100 credit (income) Nothing needs to be done additionally configuration wise. > > But how would I correct this after? I would have to check each invoice by > hand (or create an export for calculation) and manually subtract this > amount from the tax account. This would be a lot of work. In addition, > would the balance be wrong most of the time since it includes the VAT Rates > and not the SSS Rate. I don't believe any accountant would like that. > Now, whenever (at the end of each period) you have to submit your VAT declaration to the Swiss tax authority, you have the following information at your disposal to generate the statement: Total VAT applicable turnover: 100 Total VAT collected: 8 Total VAT due (100 + 8) x 6% = 6.42 So your GL transaction regarding this would/could be: VAT Transfer account: 8 debit (countering the previous transaction entry, rendering the balance to 0) VAT due: 6.42 credit (liability) VAT deferred 1.58 credit (income - subsidy aspect for small companies) This would eliminate the need to implement the following: > > What do you mean by "specific tax categorization of product-customer > combinations"? I assume you don't mean the "categories" tab from tax > authorities? So what do you mean more specifically by reducing the > percentage with it? > > Freundliche Grüsse > > Adrian Stern > unchained - web solutions > > adrian.st...@unchained.ch > +41 79 292 83 47 > > On Mon, Nov 10, 2014 at 1:32 PM, Pierre Smits <pierre.sm...@gmail.com> > wrote: > > > Adrian, > > > > Always keep in mind what the legal and fiscal requirements are that are > > imposed on your company. > > > > If I understand you posting correctly you are required to include tax > for > > 8% VAT regarding the net amount on the invoice to your customer. Your > > customer must pay this 108% to you. I also understand that at the end of > a > > certain period you must submit your VAT tax statement pertaining the > > invoice of 100. On that statement you have to declare 6% of 108 (100 +8%) > > as the VAT due. > > > > Now, the following question might help you to find the answer to your > > question/request: what about the difference between the 8 mentioned on > the > > invoice and the 6,48 that you are required to pay to the tax authority? > Are > > you required to refund the customer, or is it some kind of subsidy scheme > > in your country to further your company? > > > > Anyway, I would suggest to avoid - as much as possible - increasing your > > invoicing scheme and your gl setup with some complex price ruling > mechanism > > to get to the 6.48. > > If you are expected (at periods end) to have only included VAT up to 6.48 > > you can either correct this manually then, or reduce the percentage > through > > specific tax categorisation of those product-customer combinations. > > > > Tax is never easy! > > > > Best regards, > > > > Pierre Smits > > > > *ORRTIZ.COM <http://www.orrtiz.com>* > > Services & Solutions for Cloud- > > Based Manufacturing, Professional > > Services and Retail & Trade > > http://www.orrtiz.com > > >
