How to Setup Country Specific VAT

How to Setup Country Specific VAT

Khaos Control Cloud has the ability to track country specific VAT and this guide explains how to set this up. 

Please note that the values required for each country will be dependent on your tax agreements with the country in question - we can't assist you with this information.

When a sales order is created and country specific tax is applicable for items on the order, the system will use the appropriate tax rate for those items.
Warning
When Country Specific VAT is set up on your system it is essential that all stock items have a Tax Rate from the country specified in [System Values | General] set against them as their Base Tax Rate, even if they are only to be sold overseas. Failure to do this will result in unexpected system behaviour.

Enable Country Specific VAT

  1. Go to [System Setup | System Values | Accounts].
  2. Click Edit.
  3. Enable the Country Specific Tax toggle.
  4. Click Save Screen.

Setting up the VAT Rates for Specific Countries

In order to set the tax rates for a specific country you only need to use Part 1 unless your tax is a delivery tax or you require multiple tax rates for a single country, in these cases please complete parts 1 and 2.

Part 1

  1. Go to [System Setup | System Data | Countries].
  2. Green select the country you wish to apply specific tax rates.
    1. This must be done one country at a time.
  3. Click Grid Actions.
  4. Select Set Country Tax Rates.
  5. In the popup click +New.
    1. Rate - This is the tax rate that will be applied if applicable.
    2. Code - This code will be used in your [System Data | Tax Rates] grid, should be identifiable to you and be unique.
    3. Description - The description of the tax rate that is visible for you to identify this tax rate within the system.
    4. Tax Number - Your tax reference for this country. Leaving this field blank will result in the country tax not being applied.
  6. Click OK.
  7. Go to [System Setup | System Data |  Tax Rates].
  8. Click Edit.
  9. Enable the Default checkbox for the tax rate created above.
  10. Ensure the Enable Country Tax checkbox is enabled.
  11. Click Save Screen.

Part 2

  1. Go to [System Setup | System Data |  Tax Rates].
  2. Click Edit.
  3. If your tax is a delivery tax:
    1. Enable the delivery checkbox for the tax rate to which this rate applied.
  4. If you require more than 1 tax rate for a single country:
    1. Click +New.
      1. In the new row, repeat the steps carried out in Part 1 (above).
      2. Enable the Default checkbox for whichever tax rate is the default for this country.
  5. Click Save Screen.
Please Note: If you require multiple tax rates for a single country then you will also need to complete the Adding Country Specific VAT To Stock Items section below.

Adding Country Specific VAT to Stock Items

If a stock item requires a country VAT rate that is not the default for that country, there are two ways this can be done. Tax rates can be defined against the Level 2 stock type or against a specific stock item. If country specific VAT is specified against both the stock item AND the Level 2 Stock Type it is the Level 2 Stock Type rate that will take priority.

Defining Country Specific Tax Rates Against a Stock item

  1. Open the stock item record.
  2. Click Edit.
  3. Click Actions and select Country Tax Rates.
  4. Click +New.
    1. You will be presented with country specific VAT rates as defined in [System Data | Tax Rates].
    2. Green select all applicable tax rates for the product and click OK.
      1. Only a single TAX rate from each country may be registered against a single stock item.
    3. Click OK to confirm the tax rates.
  5. Click Save Stock Item.

Adding Country Specific VAT to Level 2 Stock Types

  1. Go to [System Setup | System Data | Level 2: Type].
  2. Green select the stock type to have country specific vat applied. There is no need to click Edit.
  3. Click Grid Actions and select Set Country Tax Rates.
  4. Click +New.
    1. You will be presented with country specific VAT rates as defined in [System Data | Tax Rates].
    2. Green select all applicable tax rates for the product and click OK.
      1. Only a single TAX rate from each country may be registered.
    3. Click OK to confirm the tax rates.

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