VAT (value added tax)

[simevo]

In the EU we have VAT.

It is typically applicable to all sales and purchases, independent from customer / vendor.

To support VAT:

• There should be no Sales Tax Rate field in customer / vendor
• There should be a VAT rate select when adding products / services to an invoice
• There should be a list of common VAT rates including a default one
• VAT debts / credits when the invoice is registered or sometimes when it is paid (there should be an option for that)

[elarroba]

Thank for your feedback.

I agree VAT is not linked to a customer/vendor. This is meant to be used as a default value associated with a customer/vendor if needed to be used programmatically. However, currently sales tax still needs to be manually handled as an additional line item in your bills/invoices if needed. The software has not evolved to the point where VAT (or any other sales tax for that matter) is a supported feature.

[Alphagest]

VAT can also change depending on the project, for example in France and in construction, in the same invoice we can have 2 different VAT, 5.5% for energy renovation and 10% for normal renovation. 20% VAT is applied to new work.

[PredictiveManish]

What is the issue here??

[elarroba]

VAT can always be handled as a separate invoice/bill item with current implementation and be driven by application logic. There are so many scenarios depending on country, economic activity, items, etc that it would be very difficult to create a one size fits all, just like @Alphagest describes.

The alternative is to add a VAT field to bills, invoices, products, customers, etc and have a generalized %-wise implementation based on total amount that could be customized by the developer.

I would encourage to start a discussion to define what features could be implemented to support most use cases.