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From Pierre Smits <pierre.sm...@gmail.com>
Subject Re: Implement different VAT Behaviour
Date Wed, 12 Nov 2014 08:07:06 GMT
Adrian,

No worries....

It seems to me that you're missing some vital knowledge regarding working
with the accounting module of OFBiz. I advise you to get the 'Getting
Started With Apache OFBiz Accounting' book, written by our fellow
contributor Sharan Foga. It will be a EURO 50,-- (or thereabouts) well
spent to get acquainted with the component.

For more details on the book, see:
http://www.lulu.com/shop/sharan-foga/getting-started-with-apache-ofbiz-accounting/paperback/product-21841766.html
, or contact Sharan.

Furthermore you can:

   - get in touch with someone who understands Swiss accounting and taxes
   and solicit his advice, and/or
   - get in touch with someone who understands accounting in relation to
   OFBiz and solicit support

to get your issue resolved. I am certain that such much be achievable.

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

On Tue, Nov 11, 2014 at 10:12 AM, Adrian Stern <adrian.stern@unchained.ch>
wrote:

> Hi Pierre
>
> As always tanks for your effort.
>
> You say I've got this information at my disposal. In what form? Where? I'am
> asking because I'm not sure if you're implying that I can use those values
> in code or if I find them somewhere else.
>
> One more Problem. I should've mentioned it from the start but there is more
> than one SSS rate, just as there is more than one VAT rate. Depending on
> the product/service sold i have to use one of these rates here
> <http://www.admin.ch/opc/de/classified-compilation/20102858/index.html> to
> calculate Total VAT due.
>
> If i could get a split like:
>
>    - Total VAT applicable turnover *rateA*: 100
>    - Total VAT collected *rateA*: 8
>    - Total VAT due *rateA* (100+8) x 6% = 6.42
>    - -------------------------------------------------------------------
>    - Total VAT applicable turnover *rateB*: 50
>    - Total VAT collected *rateB*: 2.5
>    - Total VAT due *rateB* (100+2.5) x 3% = 3.075
>
> Like creating different Tax accounts to use for the different SSS rates.
> Would such a setup be possible? How would I Access the VAT collected,
> turnover, due information?
>
> Freundliche Grüsse
>
> Adrian Stern
> unchained - web solutions
>
> adrian.stern@unchained.ch
> +41 79 292 83 47
>
> On Mon, Nov 10, 2014 at 4:36 PM, Pierre Smits <pierre.smits@gmail.com>
> wrote:
>
> > 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.stern@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.stern@unchained.ch
> > > +41 79 292 83 47
> > >
> > > On Mon, Nov 10, 2014 at 1:32 PM, Pierre Smits <pierre.smits@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
> > > >
> > >
> >
>

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