Vat among European countries

ERPNext User Forum
1

Dear all,

I would like to use this list to see whether there are European users
of ERPnext who have implemented the tax for intra-community sales/
purchases.

Let me explain how far I am with an example.

I have made entries in the tax file for every Item: VAT and VAT_EU.
(actually vat6,vat19,vat6_eu, and vat19_Eu)
So I have four (4) VAT account heads!!

We buy goods in Germany and receive a purchase invoice with zero VAT.

This data I enter in a Purchase Receipt and than I select the Tax
template “EU Purchase” , that puts the VAT into VAT_Eu account heads.

This all works ok, but the problem arises when making the bank/cash
payment voucher. The debit/credit is now the German purchase invoice
plus the calculated taxes.
Not correct since we paid the amount without tax. If I manually
correct and enter the without tax amount (that i actually paid to the
supplier) i violate accounting rules, since there is one debit
recording of the tax and no counter credit!!

I checked how NL accounting systems deal with this and found a
reference in Dutch here:http://home.hccnet.nl/van.asperen/Boekhouden/
Cursus/btw.htm

The example is for 19% VAT:

Case 1: Purchase in NL so the standard purchase, Euro 1000 with 19%
VAT

Debit Stock (1000), Debit Purchase VAT(190), and credit supplier
(1190).

Case 2: Purchase in the EU Euro 1000 no VAT.
Debit Stock (1000), Credit supplier (1000) , Debit Purchase VAT (190)
and credit VAT_EU (190).

Since this system is the same for all EU countries I believe it is
worthwhile to work this out.

I am curious whether I am a lonely pioneer in the European ERPNext and
Tax landscape or there are others

robert

2
Lets get a list of all EU users and connect them?


Begin forwarded message:

From: robert <be...@gmail.com>
Subject: [erpnext-user-forum] Vat among European countries
Date: 28 February 2012 4:08:56 PM GMT+05:30
To: "ERPNext User's Forum" <er...@googlegroups.com>

Dear all,

I would like to use this list to see whether there are European users
of ERPnext who have implemented the tax for intra-community sales/
purchases.

Let me explain how far I am with an example.

I have made  entries in the tax file for every Item: VAT  and VAT_EU.
(actually vat6,vat19,vat6_eu, and vat19_Eu)
So I have four (4) VAT account heads!!



We buy goods in Germany and receive a purchase invoice with zero VAT.

This data I enter in a Purchase Receipt and than I select the Tax
template "EU Purchase" , that puts the VAT into VAT_Eu account heads.

This all works ok, but the problem arises when making the bank/cash
payment voucher. The debit/credit is now the German purchase invoice
plus the calculated taxes.
Not correct since we paid the amount without tax. If I manually
correct and enter the without tax amount (that i actually paid to the
supplier) i violate accounting rules, since there is one debit
recording of the tax and no counter credit!!

I checked how NL accounting systems deal with this and found a
reference in Dutch here:http://home.hccnet.nl/van.asperen/Boekhouden/
Cursus/btw.htm

The example is for 19% VAT:

Case 1: Purchase in NL so the standard purchase, Euro 1000 with 19%
VAT

Debit Stock (1000), Debit Purchase VAT(190), and credit supplier
(1190).

Case 2: Purchase in the EU Euro 1000 no VAT.
Debit Stock (1000), Credit supplier (1000) , Debit Purchase VAT (190)
and credit VAT_EU (190).

Since this system is the same for all EU countries I believe it is
worthwhile to work this out.

I am curious whether I am a lonely pioneer in the European ERPNext and
Tax landscape or there are others

robert






















3

Will add Christoph and other not so active EU users.

Thanks and regards,
Umair Sayyed

On Wed, Feb 29, 2012 at 10:21 AM, Rushabh Mehta <rm…@gmail.com> wrote:

Lets get a list of all EU users and connect them?


Begin forwarded message:

From: robert <be...@gmail.com>
Subject: [erpnext-user-forum] Vat among European countries
Date: 28 February 2012 4:08:56 PM GMT+05:30
To: "ERPNext User's Forum" <er...@googlegroups.com>

Dear all,

I would like to use this list to see whether there are European users
of ERPnext who have implemented the tax for intra-community sales/
purchases.

Let me explain how far I am with an example.

I have made entries in the tax file for every Item: VAT and VAT_EU.
(actually vat6,vat19,vat6_eu, and vat19_Eu)
So I have four (4) VAT account heads!!



We buy goods in Germany and receive a purchase invoice with zero VAT.

This data I enter in a Purchase Receipt and than I select the Tax
template "EU Purchase" , that puts the VAT into VAT_Eu account heads.

This all works ok, but the problem arises when making the bank/cash
payment voucher. The debit/credit is now the German purchase invoice
plus the calculated taxes.
Not correct since we paid the amount without tax. If I manually
correct and enter the without tax amount (that i actually paid to the
supplier) i violate accounting rules, since there is one debit
recording of the tax and no counter credit!!

I checked how NL accounting systems deal with this and found a
reference in Dutch here:http://home.hccnet.nl/van.asperen/Boekhouden/
Cursus/btw.htm

The example is for 19% VAT:

Case 1: Purchase in NL so the standard purchase, Euro 1000 with 19%
VAT

Debit Stock (1000), Debit Purchase VAT(190), and credit supplier
(1190).

Case 2: Purchase in the EU Euro 1000 no VAT.
Debit Stock (1000), Credit supplier (1000) , Debit Purchase VAT (190)
and credit VAT_EU (190).

Since this system is the same for all EU countries I believe it is
worthwhile to work this out.

I am curious whether I am a lonely pioneer in the European ERPNext and
Tax landscape or there are others

robert

























--
Thanks and Regards,
Umair Sayyed
www.erpnext.com

---- ERPNext - World's most affordable ERP ----

4

Well, I believe found the solution together with the erpnext team:

The BTW, that is not actually paid, is recorded twice:
Vat6 in the normal vat6 account, and vat6_eu has a negative vat of 6%

Enter directly in the item input screen: vat6 and vat6_eu (-6).
That tax file looks like

AAA vat6 6
AAA vat6eu, -6

The purchase tax template has two lines, one for vat6 and one for
vat_eu, the net result is zero

robert

On Feb 28, 11:38 am, robert be...@gmail.com wrote:

Dear all,

I would like to use this list to see whether there are European users
of ERPnext who have implemented the tax for intra-community sales/
purchases.

Let me explain how far I am with an example.

I have made entries in the tax file for every Item: VAT and VAT_EU.
(actually vat6,vat19,vat6_eu, and vat19_Eu)
So I have four (4) VAT account heads!!

We buy goods in Germany and receive a purchase invoice with zero VAT.

This data I enter in a Purchase Receipt and than I select the Tax
template “EU Purchase” , that puts the VAT into VAT_Eu account heads.

This all works ok, but the problem arises when making the bank/cash
payment voucher. The debit/credit is now the German purchase invoice
plus the calculated taxes.
Not correct since we paid the amount without tax. If I manually
correct and enter the without tax amount (that i actually paid to the
supplier) i violate accounting rules, since there is one debit
recording of the tax and no counter credit!!

I checked how NL accounting systems deal with this and found a
reference in Dutch here:http://home.hccnet.nl/van.asperen/Boekhouden/
Cursus/btw.htm

The example is for 19% VAT:

Case 1: Purchase in NL so the standard purchase, Euro 1000 with 19%
VAT

Debit Stock (1000), Debit Purchase VAT(190), and credit supplier
(1190).

Case 2: Purchase in the EU Euro 1000 no VAT.
Debit Stock (1000), Credit supplier (1000) , Debit Purchase VAT (190)
and credit VAT_EU (190).

Since this system is the same for all EU countries I believe it is
worthwhile to work this out.

I am curious whether I am a lonely pioneer in the European ERPNext and
Tax landscape or there are others

robert

1 Like