(IND) Calculate VAT for various purchase types [AX 2012]

Updated: October 10, 2012

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

Value Added Tax (VAT) can be calculated for various purchase types in a purchase order. If the VAT goods type is Input goods, the VAT amount is calculated and posted to the VAT recoverable account.

If the transaction is for capital goods, the VAT amount is calculated and posted to the VAT deferred account and the VAT deferment installments are created, based on the deferment schedule set up for the Tax Identification Number (TIN).

NoteNote

This topic has not been fully updated for Microsoft Dynamics AX 2012 R2.

  1. Click Procurement and sourcing > Common > Purchase orders > All purchase orders. On the Action Pane, click New > Purchase order, or double-click a purchase order.

  2. Enter the required details.

  3. In the Purchase type field, select the type of purchase.

  4. Click the Setup FastTab.

  5. Select the sales tax group for the purchase order in the Sales tax group field.

  6. Select the item sales tax group for VAT for the item in the Item sales group field.

  7. Click Line view, and then enter the required details in the Line details FastTab.

  8. Click the Tax information tab and enter the details in the VAT field group.

  9. Select the TIN in the Tax Identification Number (TIN) field.

  10. Select the following category of goods for the transaction in the VAT goods type field:

    • Input – Select this option if the goods are input goods.

    • Capital – Select this option if the goods are capital goods.

  11. Enter the non-recoverable percentage for the purchase order in the Non-recoverable pct. field.

    NoteNote

    Non-recoverable percentage is entered for purchased goods that are used for production or manufacturing of nontaxable goods.

  12. Post the purchase order.

    NoteNote

    The percentage of tax amount defined in the Non-recoverable pct field is posted to the ledger account (debit type) or loaded on inventory. The remaining amount is posted to the deferred account or recoverable account for the specified TIN, based on the transaction.


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