6.2. Rates

The tax rate represents the VAT rate used at document detail level in order to calculate the VAT amount. A tax category contains multiple VAT rates. The Tax Rate window, located in the Performance Analysis -> Accounting Rules -> Taxes menu, is used to define and maintain the VAT rates used for each active fiscal category in accordance with the current legislation. The following fields are available:

• Name - this represents the text of the VAT rate that will be printed on the document (e.g. 24%);

• Description - optional field with details regarding the corresponding tax rate usage;

• Active - indicates whether the tax rate is active within the system;

• Default - if checked, this tax will be selected by default for products with the same tax category;

• Tax Category - the category this tax rate belongs to;

• Valid from - starting date when this tax rate will be available for use. If there are multiple tax rates defined, the system will use the one with the most recent "Valid from" date;

• Tax exempt - check for tax rates used on documents where the business partner is defined as "tax exempt";

• Requires Tax Certificate - check for tax rates that are part of the 394 and 390 declarations;

• Document Level - only check in case you want the tax to be calculated based on the document's total. If this box is left blank, the taxes will be calculated at document detail level.

  • Note: Since Romanian Law stipulates that, on a fiscal invoice, taxes should be marked out on each line, we recommend you do not check the Document Level checkbox;

• Tax Delayed - check for tax rates used in transactions (procurement or sale) decreed by law as "Tax Delayed";

• Summary Level - check if this tax is going to be a parent tax. It is applicable to reverse tax-type VAT rates;

• Use Shipping Address - the algorithm for obtaining the automatic VAT rate application to the corresponding transaction will use the data on the delivery address instead of the invoice address;

• Is Reverse Tax - check for tax rates that are used to define reverse tax-type compound taxes;

• Parent Tax - select when forming compounded taxes, this option is specifically used for reverse taxes;

• SO/PO Type - indicates whether this tax is used for purchasing or sales;

• Rate - the applied VAT rate percentage.

  • Note: in the case of reverse tax, the percentage entered should be negative;

• Tax Indicator - optional code that will be printed on documents referencing this tax;

• Country (Source) and (Country) To - complete to obtain the algorithm for obtaining the automatic VAT rate application to the corresponding transaction . The data are compared with those of the invoice address, or those of the delivery address if the Use Shipping Address checkbox has been selected;

• Region (Source) and (Region) To - complete to obtain the algorithm for obtaining the automatic VAT rate application to the corresponding transaction.The data are compared with those of the invoice address, or those of the delivery address if the Use Shipping Address checkbox has been selected;

• Cash Register Indicator - code used by the cash register to indicate a specific tax rate.

Use the Tax ZIP tab to complete or modify the rules regarding the application of the rates of the VAT determined by the associated postal code.

• Active - indicates whether the rule is active within the system;

• ZIP, ZIP To - postal locations from where the applicability of this tax starts and ends.

If there are no records in the Tax Zip tab, then the tax will be applied to all postal codes.

The Accounting tab is used to view and edit the accounting combinations regarding this tax rate. The accounting combos are automatically completed from the definition of the Accounting Schema. The user can modify the default combos:

• Tax Due account - choose the account corresponding to the Collected VAT (e.g. 4427);

• Tax Credit account - choose the account corresponding to the Deductible VAT (e.g. 4426);

• Tax Liability account - choose the account corresponding to the Non-exigible Tax (e.g. 4428);

• Tax Expense account - choose the account corresponding to the Payable VAT (e.g. 4423);

• Tax Receivables account -choose the account corresponding to the Reclaim VAT (e.g. 4424).