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    Government Tax as separate Vendor for Use Tax/VAT

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    • Product: Alma

     

    Question

    How to apply Use Tax, or Government VAT Tax, to an invoice?

    Answer

    The outline is explained in the Online Help regarding "Creating an Invoice From a PO or Manually":

    "If VAT is entered for this invoice, and the vendor is noted as liable for VAT, and the institution has an associated governmental vendor, a separate invoice is created for this tax and linked to this invoice. The linked invoice includes only the VAT. For details on configuring liability for tax and a governmental vendor, see step 2 and step 5 in To add a vendor and vendor account:. See also How Alma Handles VAT Payments.

    After this invoice is paid/exported, the governmental invoice is also paid/exported and appears on the Find Invoices page with the name <invoice number>_RT, where <invoice number> is this invoice’s number and _RT stands for Report Tax (the governmental invoice)."

     

    The steps are:

    1. Have a Vendor who has Vendor Type: Governmental. The vendor is "Liable for VAT". Indicate "Tax Percentage", e.g. 10.1.
    2. Create an invoice for the vendor for which POLines are created, as usual.
    3. In the Invoice, for VAT, click:
      1. Report tax
      2. VAT is zero
      3. VAT Type will be "Exclusive", or, "Line Exclusive" (see below or click here for "VAT Calculation - Example").
    4. Process the invoice as usual.
    5. Save and Continue > Invoice status is likely: In Approval.
    6. Once approved, Invoice Status is: Ready to be Paid. 
    7. Again "Save and Continue" > confirm that "Invoice is set with Report Tax. Tax invoice will be created".
    8. Depending on ERP export, find the Invoice after step 7 or wait for ERP to run.
    9. Now find two invoices, one with extension:  _RT.
    10. Handle the invoice as preferred (e.g. keep as Internal Copy, or export to ERP).

     

    Additional Information

    Detailed new presentation found here: Invoicing – How to pay Use Tax (Reporting Tax) to a governmental vendor when paying invoice

    Find the Online Help regarding "VAT Calculation – Example"

    Learn more about "How Alma Handles VAT Payments".

    Images and steps exist in the June 2014 Release Notes under "Support for Separate Vendor for Use Tax/VAT": https://knowledge.exlibrisgroup.com/Alma/Release_Notes/050_2014/07_June_2014

     

     

     

    • Article last edited: 19-APR-2021