Sales tax codes (form)

  • Article

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Click General ledger > Setup > Sales tax > Sales tax codes.

Use this form to create sales tax codes for the sales taxes and duties that your legal entity is obliged to calculate, collect, and pay to sales tax authorities.

Tasks that use this form

Set up and use sales tax codes

(MEX) Set up tax report category

(MEX) Create and post invoices for a non-managed vendor

The following tables provide descriptions for the controls in this form.

Tabs

Tab

Description

General

Select the settlement period and ledger posting group for the selected sales tax code. In addition, set up options for a sort code for packing duties and indicate if the sales tax code is a purchase duty, how the sales tax code is printed on an invoice, and whether a negative sales tax is allowed.

Calculation

Select calculation parameters for the selected sales tax code.

Report setup

Set up sales and purchases reporting codes for sales tax reports.

Report setup - credit note

Set up credit note reporting codes for sales tax reports.

Buttons

Button

Description

Values

Open the Values form, where you can specify a sales tax value or percentage for the sales tax calculation. You can specify different sales tax values for different amount intervals and periods.

Limits

Open the Sales tax limits form, where you can specify the minimum and maximum sales tax for the selected sales tax code for a specific date interval.

Inquiries

Open a menu that contains the following items:

  • Included in item sales tax groups – Open the Sales tax codes in the group form, where you can view the item sales tax groups in which the sales tax code is used.

  • Included in sales tax groups – Open the Sales tax codes in the group form, where you can view the sales tax groups in which the sales tax code is used.

  • Posted sales tax – Open the Posted sales tax form, where you can view the sales tax transactions for the sales tax code.

Print

Open a menu that contains the following items:

  • Sales tax codes – Print the details for one or more sales tax codes.

  • Sales tax reporting codes – Print the reporting codes for one or more sales tax codes.

External codes

Open the External codes form, where you can set up, define, and maintain external codes for different fields that are used to send and receive documents electronically through the Application Integration Framework (AIF).

Recalculate tax

Open a menu that contains the following items:

  • Unposted transactions that use the selected taxes – Recalculate sales taxes for transactions that have not been posted and that use the selected sales tax group.

  • All unposted transactions – Recalculate sales taxes for all transactions that have not been posted.

Customer invoice printout

Enter descriptive text that explains the tax code. This text is printed on customer invoices and project invoices. The text is saved in the language that you select and is printed on invoices that match the selected language.

Note

(FIN) This control is available only to legal entities whose primary address is in Finland.

Fields

Field

Description

Sales tax code

The unique identifier of the sales tax code. The sales tax code identifies a tax that is connected with a sale, such as a sales tax, fee, duty, purchase duty, or packing duty.

Name

The descriptive name for the selected sales tax code. The name appears on reports and in forms together with the sales tax code.

Sales tax jurisdiction code

The sales tax jurisdiction code that the sales tax code is assigned to, if any. This field is available if the legal entity is set up to use sales tax jurisdictions. Sales tax jurisdictions can be used for sales tax calculation and reporting in the United States.

Percentage/Amount

The percentage or amount that is specified for the selected tax code in the Values form.

Currency

The currency in which the sales tax is calculated.

If the original transaction is in another currency, the tax is converted automatically.

Settlement period

The interval in which the selected sales tax that is represented by the sales tax code is calculated and paid. The settlement period includes the terms of payment and the tax authority.

For information about how to create the intervals, see Sales tax settlement periods (form).

Ledger posting group

The ledger posting group for the selected sales tax code. The value in this field defines the general ledger accounts to which sales tax amounts for the sales tax code are automatically posted.

For information about how to create ledger posting groups, see Ledger posting groups (form).

Sort code

The sorting code that identifies the packing duty.

Print

Select the type of information to print with the tax specification on invoice documents.

  • Print code – Print the print code that is selected in the Print code field on invoice documents.

  • Sales tax rate – Print the sales tax rate on invoice documents.

Print code

Enter a code that identifies the sales tax code on printed invoices.

The sales tax code identifier is an alphanumeric string that can include special characters.

Negative sales tax percentage

Select this check box to allow a negative tax percentage for the sales tax code.

This feature, which is primarily used in Spain, is used when a legal entity must retain the IRPF (Impuesto sobre la Renta de las Personas Físicas—personal income) tax amount for vendors, and pay this amount to the sales tax authorities.

Payment sales tax code

Select the sales tax code to which conditional sales taxes are posted when invoices are settled with payments. This field is only used if you have set up the selected sales tax code for conditional sales taxes.

The sales tax rate must be the same sales tax rate that you entered in the Sales tax code field.

Note

For the transfer to occur, set up General ledger to allow the posting of conditional sales taxes. Select the Conditional sales tax check box in the Sales tax area of the General ledger parameters form.

Origin

The method of calculation of the selected sales tax code. This calculation method is applied to the tax base amount. For more information, see About the sales tax calculation methods in the Origin field.

Unrealized tax

Select this check box to indicate that the selected sales tax code will be used for unrealized value added tax (VAT).

Note

(THA) This control is available only to legal entities whose primary address is in Thailand.

Additional information

Select this check box to include the tax registration IDs, the type of operation, and other details for the vendor with the tax code in the purchase and invoice journal transactions. You can use this additional information to generate the Declaración Informativa de Operaciones con Terceros (DIOT).

Note

(MEX) This control is available only to legal entities whose primary address is in Mexico.

Marginal base

Select the type of amount that is used in the sales tax code calculation. This field and the value that is selected in the Calculation method field determine how the overall sale tax calculation is applied to the sales tax base.

Note

The method of calculation of the sales tax code is defined in the Origin field.

For more information, see About the Marginal base field.

Calculation method

Select the method of calculation for the selected sales tax code:

  • Whole amount – One sales tax rate or amount applies to the calculation base (taxable amount).

  • Interval – Various sales tax rates or amounts apply to different parts of the calculation base (taxable amount).

Note

You can select Interval only if you selected Line in the Calculation method field in the Sales tax area of the General ledger parameters form.

For more information, see About the Whole amount and Interval options for sales tax codes.

Sales tax on sales tax

Select the sales tax code to use if the value of the Origin field is Percentage of gross amount or Percentage of sales tax. For more information, see Set up a sales tax on a sales tax.

Unit

Select the unit to use if the sales tax calculation is based on a fixed amount per unit or if the marginal base is a per-unit value. For more information, see About the Unit field on the Sales tax codes form.

Round-off

Enter the lowest unit for which sales taxes are calculated for the selected sales tax code.

If taxes should be rounded to a unit that is 1/100 of the currency of the tax, enter the value as a decimal, such as 0.01.

Note

The round-off value does not have to be less than 1.

Round to nearest

Example

0.01

Round 123.4567 to 123.46

0.1

Round 123.4567 to 123.50

1

Round 123.4567 to 123.00

10

Round 123.4567 to 120.00

Whether sales taxes are calculated for each line or for all lines depends on the selection in the Calculation method field in the Sales tax area of the General ledger parameters form.

If one of the following options is selected in the Marginal base field in the Sales tax codes form, sales taxes will be calculated for each line.

  • Net amount per line

  • Net amount per unit

  • Gross amount per line

  • Gross amount per unit

Rounding form

Select how calculated taxes are rounded.

Packing duty

Select this check box to specify that the sales tax code is a packing duty.

You can select this check box only when Amount per unit is selected in the Origin field.

When you convert a unit of measure, the unit that it is converted to depends on whether this check box is selected.

  • If this check box is selected, the unit of measure is converted to the unit of measure that is displayed in the Unit field in the Released product details form.

  • If this check box is not selected, the unit of measure is converted to the unit of measure that is displayed in the Unit field in the Sales tax codes form.

Calculate before sales tax

Select this check box to calculate and add a duty or tax to the net amount before sales tax is calculated.

For example, you could calculate a duty and a sales tax on the same transaction, and add the duty amount to the net amount before the sales tax is calculated.

Example

In the Origin field, Percentage of net amount is selected.

The amount that is entered in a journal is 10.00.

The tax rate is 25%.

The sales tax is then calculated as follows:

Journal amount * Tax rate = 10.00 x 25% = 2.50

The net amount is then calculated and posted as follows:

Journal amount – Sales tax = 10.00 – (10.00 x 25%) = 7.50

For more information, see Set up a sales tax on a sales tax.

Taxable sales

Select the number of the field on the sales tax report that contains taxable sales. Each sales tax report contains numbered cells for reporting to various authorities. The sales tax code is included on these reports in the cell that is indicated in this field.

Tax-free sale

Select the number of the field on the sales tax report that contains tax-free sales. Use this when a sales tax code is associated with a sales tax group for which sales tax should not be calculated. Each sales tax report contains numbered cells for reporting to various authorities. The sales tax code is included on these reports in the cell that is indicated in this field.

Sales tax payable

Select the number of the field on the sales tax report that contains sales tax payable. Each sales tax report contains numbered cells for reporting to various authorities. The sales tax code is included on these reports in the cell that is indicated in this field.

Taxable purchases

Select the number of the field on the sales tax report that contains taxable purchases. Each sales tax report contains numbered cells for reporting to various authorities. The sales tax code is included on these reports in the cell that is indicated in this field.

Tax-free purchase

Select the number of the field on the sales tax report that contains tax-free purchases. Use this when a sales tax code is associated with a sales tax group for which sales tax should not be calculated. Each sales tax report contains numbered cells for reporting to various authorities. The sales tax code is included on these reports in the cell that is indicated in this field.

Sales tax receivable

Select the number of the field on the sales tax report that contains sales tax receivable. Each sales tax report contains numbered cells for reporting to various authorities. The sales tax code is included on these reports in the cell that is indicated in this field.

Taxable import

Enter the number of the field on the sales tax report that contains taxable import. Each sales tax report contains numbered cells for reporting to various authorities. The sales tax code is included on these reports in the cell that is indicated in this field.

Offset taxable import

Select the number of the field on the sales tax report that contains offset taxable import. Each sales tax report contains numbered cells for reporting to various authorities. The sales tax code is included on these reports in the cell that is indicated in this field.

Use tax

Select the number of the field on the sales tax report that contains use tax. Each sales tax report contains numbered cells for reporting to various authorities. The sales tax code is included on these reports in the cell that is indicated in this field.

Offset use tax

Select the number of the field on the sales tax report that contains the transaction that offsets the use tax. Each sales tax report contains numbered cells for reporting to various authorities. The sales tax code is included on these reports in the cell that is indicated in this field.

Country/region type

Select the country/region type that controls item receipts and statistics, if the local tax authority requires it.

Excluded

Select this check box to exclude the selected sales tax code from the European Union (EU) sales list.

Report layout

Select the layout of the report about sales tax codes.

Requires tax border number

Select this check box if the code requires a tax border number.

Note

(FIN) This control is available only to legal entities whose primary address is in Finland.

Domestic customs practice

Select this check box if the code requires domestic customs.

Note

(FIN) This control is available only to legal entities whose primary address is in Finland.

Tax category report

Select a tax report category for the sales tax code.

Note

(MEX) This control is available only to legal entities whose primary address is in Mexico.

Taxable sales credit note

The field number that is used to report taxable sales credit notes.

Tax exempt sales credit note

The field number that is used to report tax exempt sales credit notes.

Sales tax on sales credit note

The field number that is used to report sales tax on sales credit notes.

Taxable purchase credit note

The field number that is used to report taxable purchase credit notes.

Tax exempt purchase credit note

The field number that is used to report tax exempt purchase credit notes.

Sales tax on purchase credit note

The field number that is used to report sales tax on purchase credit notes.

Taxable import credit note

The field number that is used to report taxable import credit notes.

Offset taxable import credit note

The field number that is used to report offset taxable import credit notes.

Sales tax on import credit note

The field number that is used to report sales tax on import credit notes.

Offset sales tax on import credit note

The field number that is used to report offset sales tax on import credit notes.

Report layout

The report layout for reports about sales tax codes on credit notes.

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