The Enter Customer Tax Information activity sets up tax
rules for the relationship between our company and the customer's address.
For each delivery address, specify the tax liability that applies to the
relationship between each of your supplying countries and this specific
address. You can also specify the Supply Country '*’ (asterisk), meaning
'any not specifically selected Supply Country'. I.e. the tax liability
specified for Supply Country '*' applies to all not specifically selected
Supply Countries
In the Delivery Tax Information tab, you enter details like the tax book reference. You can also enable tax withholding for the selected customer delivery address by choosing Tax Withhold in the Tax Withholding field.
In the Supply Country sub-tab, you enter Tax Liabilities and the 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 the company.
In the Taxes tab, enter tax codes that apply to transactions when referring to a specific customer. This is typically used when tax is not defined for the sales object. Note: If tax codes are entered in this tab and also in the sales object, all tax codes will apply to the transaction.
In the Tax Exempt Info tab, define whether a tax exemption exists for a specific delivery address. If a tax exemption requires a certificate from the authorities and needs to be filed, enter that information here.This has been added to accommodate the Italian customer who holds an exemption certificate, in order to verify that the certificate allowing VAT-free purchases is valid.In the Tax Free Tax Codes tab, enter a tax free tax code if the tax liability is exempt. For exempt liabilities, also specify tax free tax codes by delivery type to separate goods, services, and tripartite trade in tax reporting. Delivery Type '*' (asterisk) can be specified, meaning 'any not specifically selected Delivery Type.' The tax free tax code specified for Delivery Type '*' applies to all delivery types not specifically selected and if the delivery type is missing on the order or invoice line, such as when it is 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 is also used to validate tax ID numbers in the Customer/Address/Document Tax Information tab and Customer Tax ID Numbers Validation page.
This activity requires entering the necessary values in the Customer/Invoice and Address tabs. It’s essential to define the tax codes in the Tax Codes window in IFS/Accounting Rules and set the tax liability information in the Tax Liability page of IFS/Enterprise. If referencing a tax book, it’s essential to define it in the Tax Book page in IFS/Accounting Rules.
In the IFS Enterprise/Company/Tax Control/General tab, the method for handling taxes is defined. When the Object Level checkbox is selected, it’s essential to enter tax information on sales items, such as sales objects, sales parts, non-inventory sales parts, package parts, sales charge types, and report codes for projects. If the Address Level checkbox is selected, tax information must be entered on the Customer page, under the Address/Delivery Tax Information/Supply Country tab. If the Transaction Level checkbox is selected, entering a tax code on transactions, such as customer orders, sales quotations, and various types of customer invoices, becomes necessary.
Depending on the tax setup in this window, tax codes are fetched accordingly for the transactions. Note: If tax codes are entered on this page and in the sales object, all tax codes will be applied to the transaction.
For example:
When customer ABC has two tax codes associated with delivery address ID 1—AZST (Arizona State Tax 5%) and AZCT (Arizona City Tax 10%)—and a customer invoice for $100 is manually created using delivery address ID 1, two tax lines are automatically created. Tax line 1, AZST 5%, results in $5 ($100 x 0.05), and tax line 2, AZCT 10%, results in $10 ($100 x 0.10). The total tax amount on the Lines tab in the Customer Invoice or Instant Invoice page updates to $15.
When a tax book or tax book structure is specified for the customer, it is used whenever tax transactions related to the customer are reported.
Selecting Tax Withhold in the Tax Withholding field within the Delivery Tax Information tab enables the connection of income types and tax withholding codes for the selected delivery address of the customer.