The Enter Customer Tax Information activity is used to set up tax rules for the relation between our company and the customer address. For each delivery address, specify the tax liability applicable to the relation between each one of your supplying countries and this specific address. You can also specify Supply Country '*' (asterisk), with the meaning 'any not specifically selected Supply Country'. I.e. the tax liability specified for Supply Country '*' will apply for all not specifically selected Supply Countries.
In the Delivery Tax Information tab you enter information such as tax book reference. It is also possible to enable tax withholding for the selected delivery address of the customer by selecting Tax Withhold in the field Tax Withholding.
In the Supply Country sub tab you enter tax liabilities, and tax free tax code if the tax liability is exempt, for each of your company's supplying countries. Tax liability is mandatory for all customers in a company.
In the Taxes tab, tax codes can be entered which will be used in transactions when the particular customer is referred to. This is typically used when tax is not defined for the sales object. Note! If tax codes are entered in this tab and tax code is also entered in the sales object, all tax codes will be applied on the transaction.
The Tax Exempt Info tab is used to define whether tax exemption exists for a specific delivery address. If a tax exempt needs to be clarified by a certificate from the authorities and needs to be filed for, enter that information here.In the Tax Free Tax Codes tab, you enter a tax free tax code if the tax liability is exempt. For liability exempt, specify also tax free tax codes, by delivery type, in order to separate goods, services and tripartite trade in the tax reporting. You can also specify Delivery Type '*' (asterisk), with the meaning 'any not specifically selected Delivery Type'. I.e. the tax free tax code specified for Delivery Type '*' will be used for all not specifically selected Delivery Types but also if the delivery type is missing on the order/invoice line, e.g. not specified on the sales item.
The IPD Tax Information sub tab should be set up if direct deliveries in the inter-site order functionality is made to this address.
In the Document Tax Information tab you enter Tax ID Types and Tax ID Numbers to be quoted on documents. For each document address, specify the customer´s tax ID number(s) to quote. Tax ID numbers can be specified for each document address by our company ID and Supply Country. If the same tax ID number should be quoted regardless of Supply Country, you can specify Supply Country '*' (asterisk) with the meaning 'any not specifically selected Supply Country'.
This activity requires that you have entered the required values in the Customer/Invoice and Address tabs. You also must have defined the tax codes in the Tax Codes window in IFS/Accounting Rules and the tax liability information in the Tax Liability page of IFS/Enterprise. If you will reference a tax book, the tax book must be defined in the Tax Book page in IFS/Accounting Rules.
In IFS Enterprise/Company/Tax Control/General tab, you define how customer handle their taxes. If checkbox Object Level is selected, it is required to enter tax information on sales items (e.g. sales object, sales part, non-inventory sales part, package part, sales charge type and report code for projects). If checkbox Address Level is selected, it is required to enter tax information in page Customer, tab Address/Delivery Tax Information/Supply Country. If checkbox Transaction Level is selected, it is required to enter a tax code on transactions (e.g. customer orders, sales quotations and various types of customer invoices).
Depending on the tax setup in this window, tax codes will be fetched accordingly to the transactions. Note! If tax code are entered in this page and also entered in the sales object, all tax codes will be applied on the transaction.
For example:
Let's say that customer ABC has two tax codes associated with the delivery address ID 1: AZST (Arizona State Tax 5%) and AZCT (Arizona City Tax 10%). If a customer invoice for $100 is manually created for ABC using the delivery address ID 1, two tax lines will be created automatically: tax line 1, AZST 5% = $5 ($100 x 0.5), and tax line 2, AZCT 10% = $10 ($100 x 0.10). The total tax amount on the Lines tab in the Customer Invoice or Instant Invoice page will be updated to $15.
If you specify a tax book or tax book structure for the customer, it will be used whenever you report tax transactions related to the customer.
If you select Tax Withhold in the field Tax Withholding in the Delivery Tax Information tab, it will be possible to connect income types and tax withholding codes for the selected delivery address of the customer.