Tax details—Taxes application

A tax detail is a combination of a description of the type of tax and its associated tax percentage rate. Tax details describe the specific types of tax that apply to line items. When tax is calculated, the tax schedule maps determine which tax details are applied.

To view your list of tax details, go to Accounts Payable, Accounts Receivable, Order Entry, or Purchasing > Setup > Tax and click Details. From the list, you can add, edit, and view a tax detail.

You can also get to the list of tax details by going to Taxes > Setup > Input taxes or Output taxes, and click Details.

How are tax details applied?

In Accounts Receivable and Accounts Payable for a VAT tax solution, you manually select the tax detail to apply to each line item. Taxes are calculated based on the selected tax detail. Intacct narrows the list of tax details that can be selected based on the tax schedule maps that are associated with the contact tax group for the customer or supplier.

In Order Entry and Purchasing for any of the tax solutions, taxes are automatically calculated per line item based on the tax schedule maps that are associated with both the contact tax group and the item tax group. The tax schedule maps apply the tax details.

For VAT tax solutions, users can override the calculated taxes for a line item to ensure that the correct tax is captured for accurate reporting.

Where are tax details shared?

The following applications share the same set of tax details:

• Accounts Payable and Purchasing (input taxes)
• Accounts Receivable and Order Entry (output taxes)

This means the tax schedules created in Accounts Payable or Purchasing (or under Input taxes on the Taxes setup page) can be used in either application for any of the VAT tax solutions. Similarly, the same is true for tax schedules created in Accounts Receivable or Order Entry (or under Output taxes on the Taxes setup page).

Add a tax detail

For more detailed information on each field, see the field descriptions.

1. From the Tax Details list, click Add.
2. In Detail ID, enter a name for the tax detail.
3. Enter a valid identifier in Tax UID.
   The valid identifiers are predetermined by internal Sage requirements to ensure that each tax detail is grouped and categorized properly for accurate VAT/GST reporting.
4. In Description, enter a description of the tax detail.
   This description appears on the Subtotals section when Show expanded tax details is selected in the transaction definition, allowing you to see all the taxes applied to the line items in the transaction.
5. In Percent, enter the tax rate. For example, enter 5 to apply a tax of 5%.
6. In the GL account dropdown list, select the account to which this tax is to be assigned.
7. From the Tax authority dropdown list, select the tax authority to which this tax belongs.
8. Click Save to create the tax detail record.

Edit a tax detail

For standard tax details, you can change the GL account or make the tax detail inactive.

1. From the Tax Details list, click Edit next to a tax detail.
2. Modify information as needed on the record.
3. Save your changes.

Delete a tax detail

You can delete user-created tax details that are no longer needed. Deleting a tax record removes it from Intacct so that it can't be recovered.

1. From the Tax Details list, click Delete next to a tax detail.
2. Click OK on the delete confirmation pop-up.

Standard tax details

Depending on the standard tax solutions you configured in the Taxes application, tax details that are tailored to the tax jurisdiction are automatically created.

Standard tax details can't be deleted. They can be edited to change the GL account or to make them inactive. If a particular tax detail is not applicable to your organization, you might want to make the tax detail inactive so users do not accidentally use it. Inactive tax details are not displayed in the Tax detail dropdown lists in the user interface in Accounts Payable, Accounts Receivable, Cash Management, and the General Ledger. However, an inactive tax detail is still used in the tax determination for transactions in Order Entry and Purchasing.

You can add additional tax details to meet additional business needs.

Download the update change log to review the standard tax details for each tax solution. For United Kingdom VAT post-Brexit, get this list of tax details that shows how the tax details relate to all the other tax objects.

Field descriptions

The following table describes each item in the Tax detail information page.

Tax detail information page field descriptions

Field	Description
Detail ID	Name of the tax detail. You can't change the name after you have saved the tax authority.
Tax UID	A unique identifier predetermined by internal Sage requirements to ensure that each tax detail is grouped and categorized properly for accurate sales tax reporting. Tax UIDs are applicable only for the standard VAT/GST tax solutions. When creating a new tax detail, the Tax UID is mandatory for tax details with a tax filing status marked as Reporting. It is optional for tax details with tax filing marked as Not reporting. Download the update change log for the list of valid TAX UIDs for each tax solution.
Description	A description of this tax detail. In an Order Entry or Purchasing transaction, this description appears in the Subtotals section if Show expanded tax details is selected in the transaction definition. This allows you to see all the taxes applied to the line items in the transaction.
Minimum taxable amount	The threshold at which tax begins to be applied to a line item amount in a transaction. If the amount of a line item is at or below this value, tax is not applied. For example, if the value of this field is £200, no tax is calculated when the line item amount is £200 or less. This field is rarely used for VAT or GST tax solutions.
Maximum taxable amount	The threshold at which tax stops being applied to a line item amount in a transaction. Tax is applied to line item amounts up to this value, but not on any amount over this value. For example, if the value of this field is £3,000, and the line amount is £4,000, tax is calculated only on £3,000 and not on the extra £1,000. This field is rarely used for VAT or GST tax solutions.
Include in taxable amount	The range to include in the taxable amount: Full amount: Include the cost from zero up to the maximum taxable amount. Amount within range: Include the amount between the minimum and maximum taxable amount. This field is rarely used for VAT or GST tax solutions.
Percent	The tax rate. For example, enter 5.75 to apply a tax rate of 5.75%. Tax rate percentages for tax details are limited to three decimal places.
Minimum tax	The least amount of tax that will be applied. If the calculated tax is below this amount, this amount is applied. This field is rarely used for VAT or GST tax solutions.
Maximum tax	The most amount of tax that will be applied. If the calculated tax exceeds this amount, this amount is applied. This field is rarely used for VAT or GST tax solutions.
Tax solution	The tax solution to which this tax belongs. You can change the tax solution only if the Configure Taxes page is enabled for multiple tax jurisdictions.
GL account	The general ledger account to which this tax is to be assigned.
Assign taxes to expense account	Override the GL account to assign taxes to the expense account instead. If partial exemption is enabled for an entity, then transactions for that entity will not override the GL account even if this checkbox is checked.
Tax authority	The tax authority to which this tax belongs.
Status	Indicates whether this tax detail is active or inactive. It's used to add tax if it's active. If a standard tax detail is inactive, it's not displayed in the Tax detail dropdown lists in the user interface in Accounts Payable, Accounts Receivable, Cash Management, and the General Ledger. However, an inactive standard tax detail is still used in the tax determination for transactions in Order Entry and Purchasing. To prevent an inactive tax detail from being used in Order Entry and Purchasing, ensure that the item tax group and contact tax group do not resolve to a tax schedule map.
Tax rate	The category for the tax detail: Exempt, Standard, Reduced, Zero. The category is used to summarize the tax amounts in the sample document templates provided for Accounts Receivable and Order Entry sales invoices for the United Kingdom VAT tax solution. This field is most commonly used for VAT or GST tax solutions to categorize the tax detail.
Tax filing	Set the tax detail filing state as Reporting or Not reporting. Transaction line items that use a tax detail set as Reporting will be included in tax submission calculations. Line items with tax details set as Not reporting will be excluded.
Is reverse charge	Indicates that the tax detail is used to reclaim tax for a reverse-charge transaction and ensures that the correct information is included in your Accounts Receivable and Order Entry sales invoices. This field is most commonly used for VAT or GST tax solutions.