IMPORTANT |
It is extremely important that you set up and work within your own company to maintain your data integrity. If you work within any other company, your exercises will not function as intended and the data of other students might be affected. Predictable exercise results require that your data is isolated in your own company. |
Purpose: The purpose of this exercise is to show you how to set up tax codes to be used for both supplier and customer invoices.
Windows:
Tax Codes
Tax Code | Tax Code Description | Percentage | Tax Type |
0 | No VAT | 0 | VAT |
E0 | No EU VAT | 0 | Calculated VAT |
SE | Swedish VAT 25% | 25 | VAT |
UK | UK VAT 20% | 20 | VAT |
AZ | Arizona Sales Tax | 5 | Sales Tax |
IL | Illinois Sales Tax | 6 | Sales Tax |
ILU | Illinois Use Tax | 6 | Use Tax |
Purpose: The purpose of this exercise is to show you how to set up tax codes to be used for tax withholding.
Windows:
Tax Codes
Open the Tax Codes window and create a tax code as mentioned in the above exercise.
Make sure that you select Withheld Tax from the Tax Type list.
Right-click on the record, and then click Tax Withholding to open the Tax Withholding window.
Enter the information shown in the table below.
Tax Code | Tax Code Description | Amount Not Taxable | Minimum Withheld Amount | Currency | Use Withholding Amount Table |
W1 | Withholding 5% | The base amount which should not be taxed | Minimum amount to be withheld as withholding tax at a given point | The accounting currency of the company. | Selected if the tax withholding amount table should be used instead of the percentage |
Save the information (F12).