Exact Globe

Batch 325: Non-Deductible VAT added for more countries

The funtionality to register non-deductible VAT i s now added for the following countries:

Hungary
Spain
France
Germany
Czech republic 
Slovak republic.
Italy
Poland
Belgium
UK
Switzerland
Middle East
China
Thailand
Austria
Morocco
Ireland
Malaysia
International
Luxemburg

General settings:

In the maintenance of the general settings menu [System – General – Settings], you can define if you would like to use the non-deductible VAT in this administration.

Maintenance of the ledger account:

In maintenance of your ledger accounts menu [Financial – General ledger – Maintenance] on the tab Extra, you have 2 settings for the non deductible VAT.

q       Non-deductible percentage: For each of your costs accounts, you can define the percentage of non-deductible VAT. If you define 30% non-deductible, this means that 70% will comes on the VAT account and 30% will stay on the cost account.

q       Non-deductible VAT account: For the part of the non-deductible VAT, you can define another cost account. This could be used if you want to have a distinction on your balance sheet between the real cost and the non-deductible cost:

o       If no account is defined, the non-deductible part will stay on the same cost account.

o       If an account is defined, the non-deductible part will be automatically entered on this cost account.

Maintenance of the VAT code:

In maintenance of the VAT codes, menu [System – Finance – VAT – VAT code], you have to define a special VAT code ‘N’. This VAT code will be used for the part of the non-deductible VAT.

It has to be defined as 0%.

Purchase invoices:

When these different settings and master data have been defined, you can enter your purchase invoices related with non-deductible VAT. After that you have selected the cost account on the first line,

You will see that:

-         The VAT line generated is only with the amount of the deductible VAT (1000 * 0,21 * (1- 0,30) = 147)

-         The Cost account is generated for the part of the non-deductible percentage (1000 * 0,21 * 0,30 = 63)

-         The cost account used if the same than on the first line or another if you have defined in maintenance of the cost account that another coast account has to be used for the non-deductible part of the costs.