Recently, our country implemented a new VAT rule that states that VAT is at 12%, however the Tax Basis (Net Total) is 11/12 * Net Total. So, for example:
Net Total: USD 1.000,-
Tax Basis (11/12 * Net Total): USD 1.000,- * 11 / 12 = USD 916,67
VAT (12% * Tax Basis): USD 916,67 * 12% = USD 110,-
Grand Total (Net Total + VAT) = USD 1.110,-
Before you said “just calculate it as 11%”, unfortunately we cannot do it this time. We must display and print the calculation on all Quotation and Sales Order as follows:
Subtotal____________________: USD 1.000,00
Tax Basis (11/12 x Subtotal): USD 916,67
VAT (12% x Tax Basis)______: USD 110,00
Grand Total_________________: USD 1.110,00
On Sales Tax Template, how can I do this? And how to display it on custom print format?
But what about the tax basis (the 11/12 of Net Total) line? Because this is a problem since in tax table I need to insert the account for every row, but tax basis is not part of the accounting, since it is basically just a temporary value for calculating tax that should not be part of ledger.
I’m not absolutely clear on what you’re trying to do, but my first question would be whether this 11/12ths basis is actually relevant to account at all.
Meaning: is the difference between 11% VAT and 12% VAT on 11/12ths basis actually get booked differently at all? If not, it’s probably easiest to keep the accounting simple and just calculate the tax basis in your print format.
I don’t think tax rules are robust enough to handle this.
Try using print format as your friend.
Create custom_field in your sales docTypes ‘tax_basis’. Use scripts to calculate this field. Use a tax called “VAT 12%” with a rate of .11, apply this tax via a rule but create custom print format to display tax_basis field before tax.
