Taxes application overview

The Taxes application is designed for companies who do business where value-added tax (VAT) or goods and services tax (GST) needs to be calculated and captured. The application simplifies complying with the accounting, auditing, and reporting requirements of local tax authorities. In addition, the application enables multinational organizations to capture tax (sales tax, VAT, and GST) according to the needs of each entity.

Single tax jurisdictions

If your company only operates in one country and needs to calculate and capture VAT or GST, you generally need to report and submit taxes according to the rules of one tax jurisdiction.

For example, you might be a company with business operations in the United Kingdom that also exports and imports goods and services to and from other countries. Whether you’re a standard company or a multi-entity company with an entity set up for each region, you need to calculate, capture, and submit VAT according to a single tax jurisdiction—the HMRC.

When you configure the Taxes application for a single tax jurisdiction, you define one VAT or GST solution to use for tax calculation, capture, and reporting. In multi-entity organizations, you can file your tax returns in a single return that includes all the entities or in separate returns for individual entities, groups of entities, or both.

For a single-tax-jurisdiction configuration, the following tax solutions are supported:

• Australia GST: This standard tax solution provides an automated setup for the tax rates for Australia and customizable templates for tax invoices. Using Intacct's integration with Sage Regulatory Reporting, your Business Activity Statements (BAS) are calculated for you.

•  Canadian Sales Tax: This streamlined standard tax solution provides an automated setup of tax details and tax schedules for the tax rates for Canadian GST, QST, PST, and HST, and customizable templates for tax invoices. Using Intacct's integration with Sage Regulatory Reporting, your GST34-2 reports are calculated for you.

• Deutsche Umsatzsteuer: This standard tax solution provides an automated setup for domestic tax rates for Germany and access to GoBD export files and DATEV format file exports. Using Intacct's integration with Sage Regulatory Reporting, your UStVA return is prepared and electronically submitted through ELSTER for you.

• New Zealand GST (Early Adopter): This standard tax solution provides an automated setup of tax details and tax schedules for the tax rates for New Zealand. You can create manual tax submissions and mark them as filed.

• Republic of Ireland VAT (Early Adopter): This streamlined standard tax solution provides an automated setup of tax details and tax schedules for the tax rates for the Republic of Ireland.

• Singapore GST (Early Adopter): This streamlined standard tax solution provides an automated setup of tax details and tax schedules for the tax rates for Singapore. You can create manual tax submissions and mark them as filed.

• South Africa VAT: This standard tax solution provides an automated setup for the tax rates for South Africa and customizable templates for tax invoices. Using Intacct's integration with Sage Regulatory Reporting, your VAT201 Declarations are calculated for you and can be submitted electronically or manually.

• TVA Française: This standard tax solution provides an automated setup for the tax rates for France domestic VAT and a report that can be exported in the Accounting entries file (FEC) format. Using Intacct's integration with Sage Regulatory Reporting, your CA3 VAT returns are calculated for you.

• United Kingdom VAT: This standard tax solution provides an automated setup for the tax rates for the United Kingdom and customizable templates for sales invoices. Using Intacct's integration with Sage Regulatory Reporting, you can calculate and complete MTD submissions of your VAT tax returns to HMRC.

  Sage Intacct has been through HMRC's recognition process for Making Tax Digital (MTD) for VAT.

• Custom VAT: You set up a custom tax solution with the tax rates that comply with the rules for your tax jurisdiction and tax authority. We provide some sample templates for invoices. You can create manual tax submissions and mark them as filed. Custom VAT gives you the ability to set up VAT or GST for countries where we do not provide a standard tax solution.

Multiple tax jurisdictions

If you’re a multinational company that operates in more than one country, you might need to calculate, capture, and report taxes according to the rules of different tax jurisdictions and submit taxes to multiple tax authorities.

For example, you might be a company with business operations in the United Kingdom and the United States. In such a scenario, you'll typically have a least one entity per country. For transactions in the United Kingdom entity, you need to calculate, capture, and report VAT. For transactions in the United States, you need to calculate, capture, and report sales tax.

When you configure the Taxes subscription for multiple tax jurisdictions, you can set up the tax solutions you need for each of your entities and then assign them to the appropriate entities. The same tax solution can be associated with one or more entities. You can only assign one tax solution to an entity. For entities that use the same tax solution, you can file your tax returns in a single return that includes all the entities or in separate returns for individual entities, groups of entities, or both.

For a multiple-tax-jurisdiction configuration, the following tax solutions are supported:

• Australia GST: This standard tax solution provides an automated setup for the tax rates for Australia and customizable templates for tax invoices. Using Intacct's integration with Sage Regulatory Reporting, your Business Activity Statements (BAS) are calculated for you.

•  Canadian Sales Tax: This streamlined standard tax solution provides an automated setup of tax details and tax schedules for the tax rates for Canadian GST, QST, PST, and HST, and customizable templates for tax invoices. Using Intacct's integration with Sage Regulatory Reporting, your GST34-2 reports are calculated for you.

• Deutsche Umsatzsteuer: This standard tax solution provides an automated setup for domestic tax rates for Germany and access to GoBD export files and DATEV format file exports. Using Intacct's integration with Sage Regulatory Reporting, your UStVA return is prepared and electronically submitted through ELSTER for you.

• New Zealand GST (Early Adopter): This standard tax solution provides an automated setup of tax details and tax schedules for the tax rates for New Zealand. You can create manual tax submissions and mark them as filed.

• Republic of Ireland VAT (Early Adopter): This streamlined standard tax solution provides an automated setup of tax details and tax schedules for the tax rates for the Republic of Ireland.

• Singapore GST (Early Adopter): This streamlined standard tax solution provides an automated setup of tax details and tax schedules for the tax rates for Singapore. You can create manual tax submissions and mark them as filed.

• South Africa VAT: This standard tax solution provides an automated setup for the tax rates for South Africa and customizable templates for tax invoices. Using Intacct's integration with Sage Regulatory Reporting, your VAT201 Declarations are calculated for you and can be submitted electronically or manually.

• TVA Française: This standard tax solution provides an automated setup for the tax rates for France domestic VAT and a report that can be exported in the Accounting entries file (FEC) format. Using Intacct's integration with Sage Regulatory Reporting, your CA3 VAT returns are calculated for you.

• United Kingdom VAT: This standard tax solution provides an automated setup for the tax rates for the United Kingdom and customizable templates for sales invoices. Using Intacct's integration with Sage Regulatory Reporting, you can calculate and complete MTD submissions of your VAT tax returns to HMRC.

  Sage Intacct has been through HMRC's recognition process for Making Tax Digital (MTD) for VAT.

• Custom VAT: You set up a custom tax solution with the tax rates that comply with the rules for your tax jurisdiction and tax authority. We provide some sample templates for invoices. You can create manual tax submissions and mark them as filed. Custom VAT gives you the ability to set up VAT or GST for countries where we do not provide a standard tax solution.

• Advanced Tax: You set up and maintain the tax rates that comply with the rules of the tax jurisdictions and tax authorities to which you're reporting. Advanced Tax is designed for calculating and capturing sales tax in the United States. Most of the states in the United States, plus the District of Columbia, impose a sales tax on retail sales and some services. Tax rates vary by state and county. Furthermore, you might need to calculate city taxes in addition to state taxes.
• Avalara AvaTax: Instead of using Advanced Tax to calculate and capture sales tax in the United States, you can use our integration with Avalara AvaTax. AvaTax reduces the complexity of setting up and maintaining the tax jurisdictions and tax rates. AvaTax is a cloud-based service that calculates the amount of sales tax based on location and item type, evaluating each transaction based on the latest laws and tax rates per jurisdiction. You can use the reporting in AvaTax to prepare tax returns for each jurisdiction.
• No Tax: When you configure the Taxes subscription, we automatically set up a solution where no taxes are calculated and make this the default tax solution for all your entities. After you've configured your tax solutions, you can then assign them to your entities to replace No Tax.

Restrictions when using multiple tax jurisdictions

When you use different tax solutions for different entities, the following restriction applies:

• 1099 and 1096 functionality is only supported in entities in which the operating country is the United States. Deactivate this feature for entities using VAT and GST tax solutions.

Updates

Pre-configured tax objects are automatically created when you set up the following standard tax solutions:

• Australia GST

• Canadian Sales Tax - SYS

• Deutsche Umsatzsteuer - SYS

• Ireland VAT - SYS (Early Adopter only)

• New Zealand GST - SYS (Early Adopter only)

• Singapore GST - SYS (Early Adopter only)

• South Africa VAT

• TVA Française - SYS

• United Kingdom VAT

The streamlined solutions for Canadian Sales Tax, New Zealand GST, Republic of Ireland VAT, and Singapore GST only includes tax details and tax schedules. All other standard tax solutions include contact tax groups, item tax groups, tax details, tax schedules, and tax schedule maps.

Over time, Sage Intacct might change the pre-configured setup to accommodate support for different tax scenarios or jurisdiction-mandated changes. You can update your tax object setup with the changes to keep your tax solution current.

Download the update change log here.

Supported accounting methods

The Taxes application supports accrual accounting and the accrual side of dual-method accrual and cash basis accounting. Cash basis accounting and cash basis tax reporting are not supported.

Supported transactions

The following table shows the applications and transactions where taxes can be calculated and captured:

Applications	Supported transactions	Supported
Accounts Payable	Adjustments AP purchase invoices Manual payments Recurring AP purchase invoices	VAT and GST tax solutions No Tax
	Terms: discounts and penalties Transaction allocations	Simple Tax, Advanced Tax, and Avalara Tax
Accounts Receivable	Adjustments AR sales invoices Manual deposits Recurring invoices	VAT and GST tax solutions Avalara AvaTax (AR sales invoices only) No Tax
	Terms: discounts and penalties Transaction allocations	Simple Tax, Advanced Tax, and Avalara Tax
Cash Management	Credit card transactions Manual payments Other receipts Bank interest and charges (Transaction type = Service charge) Credit card charges and fees (Transaction type = Other fees)	VAT and GST tax solutions No Tax
General Ledger	Journal entries	VAT and GST tax solutions No Tax Australia GST You can use journal entries to make adjustments and to capture transactions with other taxes, such as: Luxury Car Tax Motor Vehicle Acquisition Wine Equalisation Tax (WET) Withholding Tax
	Transaction allocations	Simple Tax, Advanced Tax, and Avalara Tax
Order Entry	Quotes Orders Shippers OE sales invoices Returns Recurring transactions	All tax solutions
Purchasing	Quotes Orders Receipts PO purchase invoices Returns Recurring transactions	All tax solutions
	Transaction allocations	Simple Tax, Advanced Tax, and Avalara Tax
Contracts	Contract invoices	All tax solutions
Projects	Project invoices	All tax solutions
Expenses	My expense reports Staff expense reports Expense adjustments	VAT and GST tax solutions