Functionality added to Licensor’s software
that will automate VAT charge calculation as well as make the appropriate
invoice notations, according to the following rules:
All
within country sales in countries subject to VAT charge must charge
VAT at the country specific rate. The country specific rate varies
by country based on the seller’s warehouse.
All
EU country 1 to EU country 2 sales when the destination customer ‘ship
to’ address has a VAT registration number, no VAT charge.
All
EU country 1 to EU country 2 sales when the destination customer ‘ship
to’ address has no VAT registration number, VAT charge at seller’s
warehouse specific rate (same rate as for within country VAT charge).
The
charged VAT depends on the country of the warehouse of the seller,
not on the destination.
Closing procedure in the pick ticket will calculate
VAT charge. There are 2 ways to calculate VAT charge:
- Doc
sub total tax by document - The calculation will affect document Tax
A
- Doc
sub total tax by line - The calculation will affect each line Tax
A
Calculate Tax
VAT Tax value depends on the Euro VAT Matrix
list – (Administration à Documents Tables List By Code à Euro VAT Matrix
List), source country (From country) against destination country (To Country):
- In case
of countries not in the matrix list – no change will take place
on the documents and the tax will remain as it was.
- In case
of countries in the matrix list but no need of VAT charge then
Tax = 0
- In case
of countries in the matrix list and need VAT charge:
- If source country (From country)
and destination country (To Country) are both ‘Euro’ and destination
customer has a VAT registration number (see figure 9,12) and
registration valid until date (date equal or bigger than today)
then Tax = 0
- If both countries are ‘Euro’ but
VAT registration number or valid until date (see figure 9,12)
are not Valid, or at least one of the countries is not ‘Euro’
then Tax = Tax rate by warehouse Tax A code (see figure 4-6,
13).
Source Country
The country and the specific rate come from the seller’s warehouse.
- When
Doc sub total tax by document, W/H code comes from the company that
works with the specific document.
- When
Doc sub total tax by line, W/H code comes from the location of the
part.
- Seller’s
warehouse will support information about: Country
and Tax A code
Destination Country
- If destination customer (in the pick ticket)
contain ‘ship to’ address, the following information will come from
the ‘ship to’ address. Customer ‘ship to’ address will support information
about: Country, registration no., and registration valid until date.
- If destination customer (in the pick ticket)
not contain ‘ship to’ address, the following information will come
from the customer address: Customer address will support information
about: Country, registration no., and registration valid until date.
