By using this tab, you can specify whether this entity of your company is a VAT taxpayer and provide the VAT-related information.
The Entity (create) form. The Tax Accounting tab
VAT Accounting Parameters
Once you select the VAT Taxpayer check box, other fields that are related to taxes appear.
Depending on the date from which this entity must start keeping the accounting records for VAT, select the start month in the Apply From box and click OK. The History of Changes link replaces the Apply From field and the OK button.
In the TRN/ TIN field, enter the tax registration number assigned by the Tax Authority to this entity of your company.
You can select the country of registration in the Country of Registration box.
In the Type of Tax Representative box, you can select one of the following options:
- Don't Use: To indicate that this entity will file the VAT returns by itself.
- Agency: To indicate that this entity will use the services of a tax agency to file tax reports and customs declarations. Selecting this option activates the Tax Agency and TAN fields, by using which you can enter the information about the tax agency whose services this entity will use. This information will be printed on VAT returns and other documents.
- Agent: To indicate that this entity will use the services of a tax agent to file tax reports and customs declarations. Selecting this option activates the Tax Agent and TAAN fields, by using which you can enter the information about the tax agent whose services this entity will use. This information will be printed on VAT returns and other documents.
Default Values
In the VAT Rate field, select the VAT rate that this entity will apply by default when selling the goods and services; the rates are defined on the list of VAT Rates. The system will use this default rate in the documents of this entity if there are no default rates specified for item or item group.
Also, select the default emirate of this entity's financial operations in the Emirate box. This default emirate will be used in payment receipts, sales documents if the default emirate is not specified for a company involved in the transaction.
If the prices used by this entity include VAT, select the Prices Include VAT check box. This option will be used as the default option for sales documents if in these documents no price type is specified (otherwise, the option associated with the price type will be used).
WHT Accounting
This section appears for entities with tax registration in Saudi Arabia.
Select the WHT Accounting option if the entity will apply this withholding taxes to services purchased from abroad.
Parameters for Payroll Taxes and Contributions Accounting
The section is available if the Payroll Taxes and Contributions Accounting functional option is selected on the Administration > Settings > Taxes form.
Select the Payroll Taxes and Contributions Payer option if this entity processes taxes of these types.
In the On Date field, select the period starting which these taxes and contributions will be processed.
A table below in this section is intended for a list of applicable payroll taxes and contributions.
Click Add to append a new line to the table.
In the Type of Tax or Contribution, select an applicable tax or contribution used in the country of the entity's tax registration.
The Rate,% column is required and, generally, is populated from the master record of the tax or contribution. Note. For the tax or contribution defined as a fixed amount, enter an approximate rate; it won't be used in actual calculations.
In the Lower Income Limit column enter the lowest income to which the tax or contribution is applicable.
In the Higher Income Limit column enter the highest income to which the tax or contribution is applicable.