Tax handling
Tax handling refers to the process of creating separate tax accounting overviews that can be audited. Most frequently used is the Value Added Tax (VAT) accounting overviews.
Output from tax handling process
Configure the VAT reference system.
Configure multinational VAT setups.
Do Intrastat reporting.
Handle and report sales tax.
Satisfactory tax handling requires that the company's system is configured in accordance with the company's standards, and the applicable laws and regulations given by the authorities.
Tasks involved in this process
VAT reference configuration - RamBase VAT handling is based on the VAT reference system. The VAT reference system helps you to pick the correct VAT code based on automatically registered country codes. It simplifies time-consuming VAT handling, especially when a company has VAT registrations in many countries.
Multinational VAT configuration - If a company has a warehouse or an agent (location) that is VAT registered in another country, you have the possibility to set up separate VAT rates for that country / VAT registration number. Transactions where this location is the consignment country, will then be handled with a separate set of national VAT rules. Based on the setup chosen, it is possible to run VAT reports for different countries in the same accounting system.
Intrastat reporting - It is possible to issue the EU Intrastat sales- and purchase reports to report trade between companies within the European Union.
Handling sales tax - For trade between companies within the United States (US), the VAT reference system traces the states for consignment and shipment. A state can be defined on transactions, and for suppliers and customers. This gives the possibility to manually post and report trade between US states. RamBase does not support automatic handling of sales tax.