Taxes

Tax configuration

Access : Accounting → Configuration → Financial → Taxes

Tax configuration allows you to define the percentage of tax on entries. Open a tax record.

You will find :

• Tax rate list: consult the rate history in this tab. Each time the tax changes, record a new entry by clicking on +New. Define the new tax rate and the start and end dates. The new line will display the new tax start date.

• Accounting configuration: this tab allows you to define a default financial account for each tax, which will be used when generating the tax lines. The financial accounts will be used when generating tax lines by entering manual entries, but also when automatically generating entries, particularly following the breakdown (i.e. “ventilation”) of an invoice.

The taxes defined beforehand will be used in the various modules used for accounting entries. It is important to define the default financial account because if this has not been done, it is possible that you will have errors when generating entries because the financial account has not been defined beforehand.

For example :

On the accounting entry form, select the account (for example, 604). The tax associated with this account will be selected automatically (in the example, it is VAT (A) standard rate).

info

For each type of VAT applicable to the different generating events (VAT on debits and VAT on receipts), you need to assign the corresponding financial account.

Configuring a Financial Account

Remember to configure the financial account.

This is where you enter the parameters for each financial account to manage the VAT-related automated processes. For example, indicate the VAT rate that will apply to sales of goods that will go into account 707100.

Access : Accounting → Configuration → Financial → Financial accounts

1. Open a financial account record.

2. Tax authorized on move line : activate this feature in order to be able to select a default tax.

3. Default tax: open the Settings tab and select a default tax.

caution

The default tax can be removed if you have different tax positions. For example, instead of Import / Export, you select Intra EU as the tax position. In this case, the tax is replaced by an equivalent.

Configure tax equivalents directly on the Tax Position window.

Taxes configuration

Access : Application config → Users/Company → Companies → On the company file, click on the “Account config” button on the right → open the Invoicing tab

Access : Application config → Apps management → Accounting, configure → click on the company file → open the Invoicing tab

1. Invoice in ATI/WT: on the accounting configuration page, open the Invoicing tab and fill in the “Invoice in ATI/WT” field.

For example: you are a taxable person, so you must always invoice excl. tax + another tax when your customers are also taxable persons liable to pay (BtoB).

When your customers are private individuals, then you can display your sales prices ATI.

Activate other functions on the Accounting app configuration page.

2. Display tax detail on printing: activate this option in order to make tax details visible on the printout. There are many other options available in the Printing settings (for example, “Display delivery address on printing”).

3. Invoice product statements: in the “Invoice product statements” section, enter the types and details. For example, “Type - Item”, “Statement: this invoice only includes deliveries of goods”.

4. Taxes paid on debits: if you have opted for debits, then you must add a statement to sales invoices.

Tax number configuration

Access : Accounting → Configuration → Financial → Tax Numbers

Tax N° : enter the company's Intra-Community tax number, since this number is required for intra-Community trade.

Products & Accounting families

Access : Application config → Referential → Configuration → Product accounting families

Access: Application config → Referential → Products → Products / Services

For accounting families (as for products directly), it is possible to indicate, in addition to the purchase and sale account, the purchase tax (which bears the account number and the applicable tax rate) and the sale tax.

Taxes

Access : Accounting → Configuration → Financial → Taxes

All collected and deductible taxes should be defined according to the type of rate to be applied.

Tax rate history is managed in each configuration according to the application dates.

tip

0 rate / reverse charge taxes: remember to also create 0 rate taxes for exemptions or reverse charge taxes (in the same entry you collect and deduct the same amount of tax unless you are a taxable person with partial liability).

Configuring taxes on a partner record

Access : Application config → Referential → Partner

Access : Sales → Customers

Access: Purchases → Suppliers

VAT system: on a partner file, you will find the VAT system (tax system). This field is used to set up whether the third party (for example, the supplier) follows the common law system (VAT on receipts) or whether it has opted for debits. You can find this field in the Accounting situation tab by clicking on a file found in the Accounting situation table.

Fiscal positions

Open Invoicing/Payment tab and find the “Fiscal position” field. Select between “Import/Export” or “intra EU”.

• Tax equivalence: tax equivalence follows the same principle as account equivalence. In the general case (sale in France) the applicable tax will be, for example, VAT collected at 20%. In the case of an intra-Community sale, the replacement tax will be Intracom deductible VAT.

• An example of intra-Community purchases: in the case of intra-Community purchases, the VAT must be “Autoliquidated”, i.e. the VAT is collected and deducted at the same time. The VAT impact is neutral.

In the settings for the EU tax position, on the deductible VAT tax, we are therefore going to apply a replacement tax “Intracom deductible VAT” (which has a rate of 20% but a different financial account) and we are going to tick the “Reverse charge” box. This will allow the deductible VAT tax to be replaced by two taxes “Intracom deductible VAT” which will be on the debit side and “due Intracom VAT” which will be on the credit side.

Entering an invoice with VAT

Purchase invoice in France

Open Invoicing/Payment tab and find the “Fiscal position” field.

Fiscal position: in the case of a purchase in France, leave the fiscal position blank. In the example, the invoice includes a service (fee) and the purchase of a good (hard disk). You can see that the VAT systems are different for each of the products (Debit for hard disks and Collection for fees).

The operative events are different for supplies of goods and services.

The deductibility date for the buyer is the same as the due date for the seller.

In this example, VAT will be deductible in two stages:

• For the purchase of hard disks: the month of the invoice.

• For fees, in the month in which the invoice is paid.

tip

If the third party had opted for debits, you would be able to deduct 100% of the VAT in the month of the invoice.

Import purchase invoice (intra-EU or non-EU)

Fiscal position - Import/Export: in the case of a purchase in the US (Import), you can see that the fiscal position has been inherited directly from the supplier.

The country of departure is the US, the country of arrival is France, so you are placed under the import system (reverse charge system → output VAT = deductible VAT).

The principle is the same for purchases within the EU.

Sales invoice in France

Fiscal position: in the case of a sale in France, leave the tax position blank. In our example, the invoice shows a service (lawyer) and the sale of a good (hard disk). You can see that the VAT systems are different for each of the products (Debit for the hard drives and Collection for the project).

The operative events are different for the supply of goods and the provision of services.

Due date :

In this example, VAT will be payable in two stages:

1. For the sale of hard disks: the month of the invoice.

2. For the project: the month in which the invoice is received.

tip

If Axelor had opted for debits, you can pay 100% of the VAT in the month of the invoice, which can make management easier.

Sales invoice from outside the EU

Fiscal position - import/export: in the case of a sale to the US (Export), you can see that the fiscal position has been inherited directly from the customer.

The country of departure is France, and the country of arrival is the US, so you are under the export system, exempt from VAT. It should be noted, however, that VAT exemption on exports is not automatically acquired.

Two conditions must be met:

• You must comply with your accounting obligations by showing exports in your books (hence the equivalence of accounts).

• Produce the customs documents justifying the export.

Sales invoice within the EU

Fiscal position - intra EU: in the case of a sale within the EU, we can see that the tax position has been inherited directly from the customer.

The country of departure is France and the country of arrival is the Netherlands, so we are dealing with intra-Community deliveries.

French VAT does not apply to intra-Community deliveries when all the following conditions are met:

• The sale is subject to a charge;

• You are subject to VAT ;

• Your customer is subject to VAT in his own country;

• The goods are dispatched or transported outside France. The delivery note may be required as proof of transport.

note

To benefit from this exemption, you must obtain your customer's VAT identification number.

tip

If the customer is a private individual, or a professional not liable for VAT, other rules will apply. For example, to distance selling.

Account an invoice with VAT

VAT-exempt sales invoice (Export within or outside the EU)

Sales to or within the EU are subject to the same accounting treatment

The entry will therefore not involve VAT accounts:

• You will debit customer account 411 for the total amount excluding VAT;

• You will credit the export sales account 7073 for the same amount (excluding tax).

Taxable sales invoice (in France)

For a taxable transaction, the VAT rate will be applied automatically according to the linked product.

The entry will therefore be as follows:

• Debit customer account 411 for the amount of the invoice including VAT;

• Credit sales account 7071 for the amount of the invoice excluding VAT;

• Credit to output tax account 44571 for the VAT amount.

French purchase invoice

For a taxable transaction, the VAT rate will be applied automatically depending on the linked product and the tax configuration.

The entry will therefore be as follows:

• Debit expense account 60 for the amount of the invoice excluding VAT;

• Debit to deductible VAT on other goods and services account 445661 for the VAT amount of the invoice;

• Credit supplier account 401 for the amount including VAT.

Import purchase invoice (intra-EU and non-EU)

For a transaction that follows the reverse charge system, the VAT rates will be applied automatically according to the linked product and the offsetting (“counterpart”) entries will be generated automatically.

The entry (“move”) will therefore be as follows:

• Debit to expense account 60 for the amount excluding VAT ;

• Debit to input VAT account 44562 for the VAT amount;

• Credit intracom VAT due account 4452 for the amount of VAT;

• Credit supplier account 401 for the amount of the invoice excluding VAT.

You will see that there is no VAT impact.