Sales tax (VAT, GST) due on a transaction on an item basis VS an invoice basis.

Keywords: Sales tax (VAT, GST) due on a transaction on an item basis VS an invoice basis.

There are two "grouping" calculation methods:

• Tax due on a transaction on an item basis

• Tax due on a transaction on an invoice basis

These methods may give different results, e.g.:

round(2.244 + 2.244) != round(2.244) + round(2.244);

4.49 != 4.48;

By default Beigesoft™ EIS uses the "item basis" method. You can switch it in the "Accounting settings" and a "Tax destination".

Example of two identical invoices for the both methods.

The system's "item basis" method is "On", so just add a new invoice with two services for 55.67USD each with tax 11%:

Add a new fake tax destination "TD Invoice basis exm." and set the "ST Invoice basis" field to "Yes", e.g:

Then add a new customer with that "Tax destination", e.g:

Then assign that "tax destination" to items, e.g:

Then add a new invoice with the same services and prices for a new customer, e.g:

As you can see, the difference is 1 cent. In real life, the difference never exceeds $ 1, usually around ten cents.