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Topic

    Riccardo Beretta
    Offset Tax Support
    Topic posted October 16, 2019 by Riccardo BerettaRed Ribbon: 250+ Points, tagged Financials, Receivables 
    36 Views, 3 Comments
    Title:
    Offset Tax Support
    Summary:
    Offset tax not calculated in the transaction
    Content:

    Hi,

     

    I need help to solve a problem about the calculation of the offset tax when I create a transaction:

    due to the fact that in italy there is reverse charge, we need to calculate the tax and immediately offset it.

    for example we have

     

    Revenue                                1000

    VAT 22%                                220

    Reverse Charge                    -220

    Total Credit to Customer        1000

     

    We have already created the tax and the offset tax and matched together

    We have also created a recovery rate (100%) associated to the offset tax.

     

    When we tried to create transactions with these tax, the offset tax didn't appear.

    What appear is this:

     

    Revenue                           1000

    VAT                                     220

    Total Credit to Customer   1220

     

    What's the problem?

     

    Thank you very much

    Riccardo Beretta

    Comment

     

    • Parul Mehra

      Please check if 'Allow Offset Taxes' is checked at Supplier and Supplier site

       

      Regards,

      Parul

      • Julien Dubouis

        As a default, the Allow offset taxes appears unchecked but it doesn't matter, the offset will get calculated as long as there is no existing party tax profile for the third party. Once the party tax profile is created, you do have to check the "Allow Offset Taxes"


        Please also check that in Configuration Owner Tax Options, you indicated an offset tax basis as bill from or bill from site.
        Thanks

        • Riccardo Beretta

          Hi Julien,

          Thank for your answer. I tried to check in the configuration owner and all the options are set well. Have you an other idea to include offset tax in the transaction? 

          Thankss