Just to quickly start a direction for this thread: the current
TaxAuthority data model and code based on it supports a lot of these
different things.
-David
On Dec 19, 2006, at 9:29 AM, Andrew Ballantine wrote:
I am sympathetic to the VAT problem and have quite a bit of
experience with
UK VAT.
Here are my comments:
1. UK allow calculation of VAT per item or for the whole invoice,
but the
general practice is to calculate per item as it makes it easier to
allow for
items with different VAT Rates and zero rated items.
2. NOT rounding the VAT on each line is a new one on me because you
risk
getting an apparent rounding error unless you print the full
fraction of VAT
on the invoice. This could cause problems on returns/refunds.
3. In general values printed on any financial document should add
up exactly
so the rounding is generally done per item, in the UK anyway.
4. Accounting is generally done in whole cents/pence thus avoiding any
rounding errors providing the data is stored in whole cents/pence e.g.
Binary Coded Decimal. I understand that some bulk product items are
priced
in fractions, but this is rounded at the item line in the invoice
i.e. when
it has to enter the accounts.
5. Accounting generally keeps tax and VAT out of the profit and loss
accounting so that the tax/VAT is separated from each item/invoice and
recorded in a different account.
The logical thing for ofbiz to do to satisfy a variety of tax
styles is to
have flags in the database at company level that the code checks
and acts
accordingly. We are unlikely to come up with a scheme that works
for all.
The flags required might be something like this:
USA
Tax whole invoice
Check customer location and local tax rules
Round whole invoice
UK
Tax by line
Round each line
I (Italy)
Tax by line
Round whole invoice
and others
For ofbiz to be an international solution, potentially for global
corporations this is the structure needed. I assume that everyone
is doing
local modifications to get around these issues at the moment, so a
generic
solution is needed if a little difficult, at first, to implement.
Hope this is of interest.
Kind regards,
Andrew Ballantine.
-----Original Message-----
From: Roberto Santori [mailto:[EMAIL PROTECTED]
Sent: 19 December 2006 15:26
To: [email protected]
Subject: Europe and VAT
Hi,
I'm working at the European (Italian/Romanian) version of OfBiz and
I'm
struggling with VAT.
The main problem with the current version is the impossibility to
separate
VAT from Sales Tax.
Note also that VAT % could be different for each different line in
the same
order (and here a more difficult problem: rounding should be done
only at
VAT group level, not for each line in the order).
Finally, the management of VAT, free gift and accounting: in case
of free
gift (zero price) the taxable amount is 0, but the VAT MUST be
paied anyway
(by the client or by the vendor), based on the standard price /
value of the
gift.
The VAT problem is really a stopper for the entire European
community. I saw
the JIRA issue 366, and I'm writing to push.... Pls contact me if
you need
help (I'm a newbie in OfBiz but quite expert in european ERP systems
management).
Best regards,
Roberto Santori
[EMAIL PROTECTED]
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