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Adding a VAT to Sale Price and BP
Adding a VAT to Sale Price and BP
From the main Formulas page click on the Add new Formula button in the top right corner. Select a Buyer Tax from the list of Master Formulas.
The first thing that you'll see on this Formula Details window will be the three descriptive fields.
Formula Code: This field can be edited as you wish. It is the unique identifier for each formula. No two formulas can have the same Formula Code.
Description: This field is used to state how this Buyer Tax looks when you select it from your drop down menus throughout the system.
Settlement Description: This field is what will be stated on the buyer's settlement.
Underneath the descriptive fields you will see two line items. These are the functional parts of the formula.
The first line item refers to any item that is either marked as a Tax Exempt item OR if the buyer of the item is Tax Exempt.
Click the Pencil Icon to the left of this line item.
Change the Description to something such as VAT Exempt.
Confirm that the Apply If field reflects the example, "Clerk Status = Sold And (Tax Exempt = True Or Buyer Tax Exempt = True)"
Confirm that the Account is set to your correct tax account.
Confirm that the Calculation field AND the Taxable amount fields are set to 0.
Confirm that the NonTaxable Amount field is set to "Total Price Plus Buyer Premium."
Confirm that the Exit If field is set to "True."
When these fields are correct click the Save button. This will direct you back to the Formula Detail Page.
Click the Pencil Icon to the left of the next line item.
Change the Description here to represent the VAT on the Sale Price/Hammer Price.
Confirm that the Apply If field reflects the example, "Clerk Status = Sold And (Tax Exempt = False And Buyer Tax Exempt = False)"
Confirm that the Account is set to your correct tax account.
Confirm that the Calculation field is set to "Hammer Price * 20%"
Confirm that the Taxable Amount is set to "Hammer Price."
Confirm that the Nontaxable Amount is set to 0.
Confirm that the Exit If field is set to False.
When these fields are correct click the Save button. This will direct you back to the Formula Detail Page.
Create a third part to this calculation by clicking the "Add Part" button above the line items you just edited.
Enter a Description to represent the VAT on the Buyer's Premium.
Confirm that the Apply If field reflects the example, "Clerk Status = Sold And (Tax Exempt = False And Buyer Tax Exempt = False)"
Confirm that the Account is set to your correct tax account.
Confirm that the Calculation field is set to "Total Buyer Premium * 20%"
Confirm that the Taxable Amount is set to "Total Buyer Premium"
Confirm that the Nontaxable Amount is set to 0.
Confirm that the Exit If field is set to True.
When these fields are correct click the Save button. This will direct you back to the Formula Detail Page.
Above the three line items that were just adjusted is the Test Formula button. Click this button to open the testing environment where you can confirm that the formula is operating as intended.
By manipulating these fields you can enter multiple settings in order to designate tax status, hammer price, buyer premium, etc.
Once the test has been run and confirmed that it's correct click the Done button in the bottom right corner. This will direct you back to the Formula Details Page.
Be sure to click the Save button at the bottom of the Formula Detail Page in order to save these changes.
The formula will display as shown when reviewing the bidder's invoice/settlement.
Each item will display a line item for the Hammer Price, Buyer's Premium, VAT on Hammer Price, and VAT on Buyer's Premium.
Adding VAT to your Commission
Adding VAT to your Commission
From the Formulas screen click the New Formula button in the top right corner.
Instead of selecting a Master Formula, click the button in the bottom left corner that says "Create a New Formula."
From this window select SELLER TAX as the Formula Type and enter the descriptive information you wish to use in the Formula Code, Description, and Settlement Description fields.
Once entered click Save.
Click on the Add Part button in order to create a new line item to this formula.
Set your formula to match the example provided, changing the percentage to suit your needs.
Description: A description explaining what this part of the formula does.
Apply If: Clerk Status = Sold And Seller Tax Exempt = False.
Account: The appropriate account you wish to apply these charges against.
Calculation: Total Commission * 20%.
Taxable Amount: Total Commission.
Nontaxable Amount: 0.
Exit If: True.
Be sure to click the Save button at the bottom of the window to save these changes. You can now select this option as a seller tax in the Auction Details screen or on a Lot directly.
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