Sales Tax

by admin, December 29, 2010

Sales Tax Tables

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Create Sales Tax, VAT, GST and PST calculations for orders.

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Instructions
Create U.S. Sales Tax tables that automatically calculate and add sales tax to orders.

  1. To access the Sales Tax  feature click on the Settings Tab and Click on Sales Tax button on the Channergy Explorer59
  2. This will display the Sales Tax screen
  3. To edit your existing tax setup select the tax field you want to edit and click on the Edit Button button.
  4. This will open the Tax Code Creation Screen.
    1. In the Tax Code Creation dialog you can specify a rate that will be automatically applied on orders based on the Shipping Address in the order.
    2. Country – If you select only a country all shipping addresses in that country will be charged the tax rate you enter.
    3. State – You can further define the location by specifying a state. All shipping addresses in that state will be charged the tax you enter.
    4. Zip – Enter a Zip code to narrow the sales tax to the smallest area. You can enter an entire Zip code or just the first digit(s). For example, enter a Zip Code of “80” and all Zip Codes starting with 80 will be charged this tax.
    5. Tax % – Enter the actual percentage to be charged in the format x.xxx (e.g., 6.5% is entered as 6.5 and 5.625% is entered as 5.625)
    6. Report Code – You can specify a code that can be used by reports to sort or identify collected sales tax.
    7. Tax On Shipping – Check this box to have Channergy include shipping charges in the total sale when calculating tax.
    8. Click the OK Button button to save and close the dialog and return to the Sales Tax Table or click the Save and Add Button button to duplicate the current tax, then make any changes you wish. This method allows you to rapidly add similar taxes (e.g., for several Zip Codes).   Note: When you save a Tax Code the Sales Tax table will change to reflect the new code in the format: Country Code; State Code; Zip Code; Report Code. In the example above the Location would show: 240;CO;;CO.
  5. To Add a new tax record click on the New button button
  6. This will open the Tax Code Creation Screen.
    1. In the Tax Code Creation dialog you can specify a rate that will be automatically applied on orders based on the Shipping Address in the order.
    2. Country – If you select only a country all shipping addresses in that country will be charged the tax rate you enter.
    3. State – You can further define the location by specifying a state. All shipping addresses in that state will be charged the tax you enter.
    4. Zip – Enter a Zip code to narrow the sales tax to the smallest area. You can enter an entire Zip code or just the first digit(s). For example, enter a Zip Code of “80” and all Zip Codes starting with 80 will be charged this tax.
    5. Tax % – Enter the actual percentage to be charged in the format x.xxx (e.g., 6.5% is entered as 6.5 and 5.625% is entered as 5.625)
    6. Report Code – You can specify a code that can be used by reports to sort or identify collected sales tax.
    7. Tax On Shipping – Check this box to have Channergy include shipping charges in the total sale when calculating tax.
    8. Click the OK Button button to save and close the dialog and return to the Sales Tax Table or click the Save and Add Button button to duplicate the current tax, then make any changes you wish. This method allows you to rapidly add similar taxes (e.g., for several Zip Codes).   Note: When you save a Tax Code the Sales Tax table will change to reflect the new code in the format: Country Code; State Code; Zip Code; Report Code. In the example above the Location would show: 240;CO;;CO.

GST and PST
Channergy supports Canadian PST and GST as shown in the Tax Chart below. The tax amounts are totaled on the order screen in the Sales Tax field, but can be separated for tax reporting.

  1. View or Add a tax as described above.
  2. The following screen will open
  3. To edit your existing tax setup select the tax field you want to edit and click on the Edit Button button.
  4. To add to your existing tax setup, click on the New button.
  5. This will open the Tax Code Creation Screen.
    1. Select a Country of Canada from the pulldown list.
    2. Enter the GST rate for your location
    3. Type a Report Code of GST.
    4. Click the OK Button button to add this tax and return to the Sales Tax table. Then press the Tab key to create a new line and click the Add Button button. A blank Tax Code Create dialog will open.
    5. Again select a Country of Canada.
    6. Type ON (for Ontario) into the State field.Note: When entering Canadian addresses in Ontario you will need to enter ON in the State field.
    7. Enterthe PST tax rate.
    8. Type a Report Code of PST.
    9. When you enter orders for your Canadian customers outside of Ontario they will be charged PST. Ontario customers will be charged PST and GST as a total amount on the order (i.e., 15%). The PST and GST amounts can be reported separately using the Report Codes.

The following information was deemed accurate at the time of this writing. No representations of accuracy are made by their inclusion. The following is provided for information purposes only.

Canadian Sales Tax (GST and PST)

Goods and Services Tax (GST) applies as follows:

  • GST is a country wide tax for Canada
  • Rate 5%
  • Exemptions:
  1. Exports out of the country require a signed waiver form stating that items are exported.
  2. Canadian Buyers are exempt only if Export Distribution Centre Program Permits. Export Oriented Canadian businesses are allowed with exemption ID’s to be exempt from GST on most inventory, property purchased for to be added to other goods in the course of processing.

Provincial Tax (PST) applies as follows:

  • PST is provisional tax for Ontario Province which includes various District like Ottawa and Toronto
  • Rate7.5%
  • Exemptions:
  1. Export out of the Ontario Province requires payment of PST
  2. Canadian Manufacturers
  3. Canadian Resellers

VAT (Value Added Tax)

Channergy supports VAT as shown in the Tax Chart below. The tax amounts are totaled on the order screen in the Sales Tax field, but can be separated for tax reporting.

METHOD 1

  1. View or Add a tax as described above.
  2. The following screen will open
  3. To add to your existing tax setup, click on the New button.
  4. This will open the Tax Code Creation Screen.
    1. Select the Country where the VAT will apply from the pulldown list.
    2. Enter a Tax % of 17.5 (or the rate you charge)
    3. Type a Report Code of VAT.
    4. If you have no other countries to enter, click the OK button button to add this tax and return to the Sales Tax table.
    5. If you would like to enter VAT for other countries, click the Save and Add button to duplicate the current tax, then make any changes you wish. This method allows you to rapidly add similar taxes. When you are done adding countries click the OK button button to add this tax and return to the Sales Tax table.
    6. When you enter orders for your VAT customers they will be charged the tax rate you entered. This information is available in the report R6100 Daily Sales Tax by Order Date.

METHOD 2

You can specify VAT at the product level instead of using the Sales Tax feature. When products with VAT are added to an order the VAT amount will be added to the Tax field in the subtotal. Because the VAT amount is stored for each item sold you can run detailed reports of VAT amounts collected. NOTE: You can use Sales Tax or VAT, not both together.

  1. First you need to specify in Preferences that you wish to use VAT. Click Tools -> Preferences on the text menu at the top of the Channergy screen. Then click the Products tab. Check the “Use VAT taxes” option, the click OK.63
  2. Open any product by clicking the Inventory button on the main menu.
  3. Next to each price level you should see a VAT field64
  4. For each price level enter a percent you wish to charge for VAT (e.g., enter 10 for a 10% charge).
  5. Repeat for each product then close the product screen.
  6. Create an order for a customer and add a product to the order that has a VAT percentage.
  7. The subtotal for the order will update the Tax field with the running VAT total. In the following example the items total $7.98 and all have a 10% VAT so the tax amount is $.80.VATSubtotal
  8. Although this amount is shown as a total on the order it is stored in the Items.dat table for each item sold. You can see the VAT % and VAT Amount for each item. This information can be displayed in reports that link the Items table.VATItems

 

 

The following information was deemed accurate at the time of this writing. No representations of accuracy are made by their inclusion. The following is provided for information purposes only.

VAT on products can vary between zero and 17.5% as mandatory laid down by Customs and Excise for composite products containing elements of both standard rate VAT and zero rate VAT.

Countries which are exempt from EEC VAT (Sales Tax) are shown in Black.
Countries and territories which are subject to VAT are shown in Blue.

EEC Member States subject to VAT are:

Belgium
Bulgaria
Czech Republic
Denmark
Germany
Estonia
Greece
Spain
France
Ireland
Cyprus
Latvia
Luxembourg
Hungary
Malta
Netherlands
Austria
Poland
Portugal
Romania
Slovenia
Slovakia
Finland
Sweden
United Kingdom

Territories of the above Member States, which are not subject to VAT:

Andorra
Jersey
Guernsey
The Aland Islands (Finland)
The Republic of San Marino
The Canary Islands, Ceuta and Melilla (Spain)
The overseas departments of France (Guadeloupe, Martinique, Reunion, St. Pierre and Miquelon, and French Guiana
Mount Athos (Greece)
Vatican City
Gibraltar
The Faroe Islands and Greenland (Denmark)
Busingen and the Isle of Heligoland (Germany)
Livingo and Campione dItalia and the Italian waters of Lake Lugano (Italy)

VAT numbers for each territory are shown.

  • UK (VAT No : GB227198351 )
  • Belgium (VAT No : BE453521619)
  • Denmark (VAT No : DK21832073)
  • Finland (VAT No : FI1540859-4)
  • France (VAT No : FR8435093467500017)
  • Germany (VAT No : DE112144487)
  • Ireland (Vat No : IE9507061A)
  • Italy (VAT No : IT11492960155)
  • Spain* (VAT No : ESG0061466I)
  • Sweden (Vat No : SE 502052817901)

* The Balearic Islands are Spanish and are classified as EC for VAT purposes.
* The Canary Islands, although Spanish, are not classified as EC for VAT purposes and are set up with ROW tax classifications on customer master records

UNDER THE HOOD: The only tables that the SalesTax table interacts with are the Orders and OrderDet tables.  When an order is taken via the phone and added from the order screen the tax table is queried to determine if the tax criteria match the shipping Zip Code, State and Country fields if so the Tax Item # is added to the StateTax field in the orders table and the computed tax amount is populated in the TaxAmt field.

In the OrderDet table the TaxLocation field is populated with the tax code in the form [CountryCode;StateCode;ZipCode;].  Where the CountryCode is the three digit code from the Country table (240 for United States), the StateCode is the 2-character state code (CO for Colorado) and the ZipCode either the full or partial zip code from the SalesTax setup screen.   The TaxPct,  IsTaxOnShip  and TaxReportCode fields are also populated from the SalesTax table.

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