Page 1 of 1
Sales Tax or VAT
Posted: Sat Feb 23, 2008 1:09 pm
by thinktank
Hi
When we setup AR should we say the tax is 'VAT' or 'Sales Tax' ? When is each value applicable and what determines it ?
Thanks
Posted: Sat Feb 23, 2008 3:44 pm
by C-MOON
Hi dear,
that tax is VAT or Sales Tax you are right we can charge this tax if in AR at trnasaction level we Check the box of add tax if its un checked no VAT will be charged pls check at Tranx set up level you will find it
thanks
Posted: Mon Feb 25, 2008 7:27 am
by roy
VAT = Value added Tax, this VAT ( acroynm ) is used in UK, rest of the world use the term TAX. Some country/state don't collect tax - ex. GCC
Both VAT and TAX are the same. UK uses the Acroynm - VAT.
What determines using either of this - if an invoice is created in UK than VAT term is used - rest TAX.
Charging Tax is mandatory in business - some expections are permitted - in the US NoN profit organisations like churches are not required to pay TAX for purchases but must submitt other documents.
Posted: Thu Feb 28, 2008 7:02 am
by thinktank
Hi ,
Correct me if I am wrong . US uses Sales tax and many Asian countries uses VAT.
In terms of calculation then does VAT and Sales TAX follow any different way of calculation.
I know that US tax calculation is based on location/county/province where the product is sold to.
Does it apply for VAT too ?