VAT Codes

VAT codes are used throughout MAC-PAC to indicate how VAT for a particular invoice or transaction line should be calculated.  When you enter invoices, customer orders, or transaction journals, you enter the appropriate VAT code for each order line, and the system will calculate and accumulate amounts by VAT code for each detail line.  A VAT Summary window can be displayed by pressing a command key so that you can review all VAT codes that have been used for the invoices as well as review that total goods value and total VAT amounts summarized by VAT code. 

A separate code is used for each different type of VAT (VAT types are explained thoroughly later in this section).  The same VAT code can be used in several different countries and associated with a different rate in each.  However, within a particular country each rate must be assigned its own VAT code. 

Separate codes are defined for Accounts Payable (Reference File category 230), Accounts Receivable (Reference File category 308), and General Ledger (Reference File category 114).  This design avoids confusion between different VAT rates used for orders and purchases.  Since VAT codes are entered for each line, different codes may apply to the same invoice or transaction. 

For each combination of VAT code and country, you define the following information:

·     Description

·     Current VAT rate

·     Future VAT rate and date on which the new rate goes into effect.  MAC-PAC begins using the new rate automatically on its effective date.

·     VAT type