Tax solutions

Use the Tax Solutions list page and the Tax Solutions Information page to manage your tax solutions.

About tax solutions

The tax solutions that appear on the Tax Solutions list page depend on how the Taxes application is configured:

• Single tax jurisdiction. Only the tax solution that's selected on the Configure Taxes page appears in the Tax Solutions list.
  The tax solution remains unconfigured and unavailable for use until it's activated.
• Multiple tax jurisdictions. The following tax solutions appear in the Tax Solutions list by default:
  • Avalara AvaTax (if the Avalara AvaTax subscription has been configured)
  • No Tax

  You can add the following standard tax solutions according to your company's needs.

  • 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

  Tax solutions for Custom VAT or Advanced Tax appear only if they've been added.

  The standard tax solutions remain unconfigured and unavailable for use until they're activated.

  The tax solutions for Avalara AvaTax, No Tax, Custom VAT, and Advanced Tax are created as Active by default.

  No Tax is the default tax solution for all entities.

If you change a tax solution for an entity, the contact tax groups associated with customers and vendors are invalid. You must manually update the contact tax groups for customers and vendors. The contact tax groups for the new tax solution appear in the dropdown to make selecting and updating them easier.

Activate an unconfigured tax solution

The standard tax solutions and Custom VAT in a single-tax jurisdiction configuration need to be activated before they can be used.

See the Overview tab field descriptions for more details.

1. Go to Taxes > Setup > Tax solutions.
2. Find the tax solution that you want to activate. Select Edit at the end of the row.
   The Description of unconfigured tax solutions starts with the text [Not configured].
3. For each standard tax solution, complete these steps:
   1. Change the Description, if desired.
   2. Enter GL account for input taxes.
   3. Enter GL account for output taxes.
   4. Enter Start date of first tax submission period.
   5. Select whether to Enable multiple taxes per line. This is enabled by default for United Kingdom VAT, so the field does not appear.
   6. Select Save.
4. For Custom VAT, complete these steps:
   1. Change the Description, if desired.
   2. Select whether to Enable multiple taxes per line.
   3. Select Save.

1. Go to Taxes > Setup > Tax solutions.
2. Find the tax solution that you want to activate and select Edit. The Description of unconfigured tax solutions starts with the text [Not configured].
3. For each standard tax solution, complete these steps:
   1. Change the Description, if desired.
   2. Enter GL account for input taxes.
   3. Enter GL account for output taxes.
   4. Enter Start date of first tax submission period.
   5. Select whether to Enable multiple taxes per line. This is enabled by default for United Kingdom VAT, so the field does not appear.
   6. Select Save.
4. For Custom VAT, complete these steps:
   1. Change the Description, if desired.
   2. Select whether to Enable multiple taxes per line.
   3. Select Save.

The status of the tax solution is set to Active. You need to create the tax objects for capturing tax.

Add a tax solution

In a multiple-tax jurisdiction configuration, you can add Advanced Tax, standard VAT, and custom VAT tax solutions.

See the Overview tab field descriptions for more details.

1. Go to Taxes > Setup > Tax solutions and select Create.
2. Enter a Tax solution name.
3. Enter a Description of the tax solution.
4. Select a Tax engine:
   • Advanced Tax. Sales tax for the United States.
   • VAT or GST. For countries where you want to create your own VAT or GST solution.
5. Select Save.

1. Go to Taxes > Setup > Tax solutions and select Add.
2. Enter a Tax solution name.
3. Enter a Description of the tax solution.
4. Select a Tax engine:
   • Advanced Tax. Sales tax for the United States.
   • VAT or GST. For countries where you want to create your own VAT or GST solution.
5. Select Save.

The status of the tax solution is set to Active. You need to create the tax objects for capturing tax.

Edit a tax solution

The Description and Status fields are usually the only fields that you can edit for an active or inactive tax solution. For standard tax solutions, you can change the start date of the first tax submission field until you've submitted a tax return.

See the Overview tab field descriptions for more details.

1. Go to Taxes > Setup > Tax solutions.
2. Find the tax solution that you want to modify. Select Edit at the end of the row.
3. Modify information as needed on the record.
4. Select Save.

1. Go to Taxes > Setup > Tax solutions. Find the tax solution that you want to modify and select Edit.
2. Modify information as needed on the record.
3. Select Save.

Delete a tax solution

In a single-tax jurisdiction configuration, you cannot delete the tax solution.

In a multiple-tax jurisdiction configuration, you can delete a standard VAT, custom VAT, or Advanced Tax solution if no objects refer to the tax solution. Deleting a tax record removes it from Intacct so that it cannot be recovered.

1. Go to Taxes > Setup > Tax solutions.
2. Find the tax solution that you want to delete. Select More actions > Delete at the end of the row.
3. Select OK.

1. Go to Taxes > Setup > Tax solutions. Find the tax solution that you want to delete and select Delete.
2. Select OK.

Deactivate a tax solution

If no transactions have been created using a tax solution, you can make the tax solution inactive. It remains in Intacct but is unavailable for use until it's made active again.

1. Go to Taxes > Setup > Tax solutions.
2. Find the tax solution that you want to make inactive. Select Edit at the end of the row.
3. In the Status dropdown menu, select Inactive.
4. Select Save.

1. Go to Taxes > Setup > Tax solutions. Find the tax solution that you want to make inactive and select Edit.
2. In the Status dropdown menu, select Inactive.
3. Select Save.

Set a default tax solution

You can simplify tax calculations in your VAT or GST transactions with default tax solutions. To do this, assign a default tax solution for a customer, vendor, or any contact. When you create an Accounts Payable or Accounts Receivable transaction with that customer or vendor, the default tax solution is assigned to the transaction.

1. Open a contact list. This can be Contacts in the Company application, Customers in the Accounts Receivable application, or Vendors in the Accounts Payable application.

2. For a new contact, select Create. For an existing contact, select Edit at the end of the row.

3. Go to Additional information > Tax calculation and select a Tax solution.

4. Select Save.

1. Open a contact list. This can be Contacts in the Company application, Customers in the Accounts Receivable application, or Vendors in the Accounts Payable application.

2. Select Add for a new contact, vendor, or customer. To change an existing contact, select Edit.

3. Go to Additional information > Tax calculation and select a Tax solution.

4. Select Save.

You can manually override the default tax solution in the transaction. If you assign a different contact for the customer 'Ship to' or vendor 'Pay to' fields, then the transaction uses the default tax solution assigned to the 'Ship to' or 'Pay to' contact.

You can only assign VAT or GST tax solutions as defaults. This feature does not support Simple Tax, Advanced Tax, and Avalara AvaTax.

Field descriptions

The following tables describe each field on the Tax solution information page.

• Overview tab
• Entities tab
• Tax schedule maps tab
• Tax details tab

Overview tab

General information section

General information section field descriptions

Field	Description
Tax solution name	Name of the tax solution.
Description	A description of this tax solution.
Status	The status of the tax solution: Not configured. Indicates that the tax solution has not been saved on this page yet. Appears only for standard tax solutions. When you select Save, the tax objects needed to capture and report tax for the country are automatically created for you. Active. The tax solution is available for use. Inactive. The tax solution is not available for use.
Tax engine	The underlying tax mechanism for this solution: Advanced Tax. For calculating sales tax. Uses contact tax groups, item tax groups, tax details, tax schedules, and tax schedule maps. Avalara AvaTax. For calculating sales tax. Uses the integration with Avalara AvaTax. VAT or GST. For calculating VAT or GST. Uses contact tax groups, item tax groups, tax details, tax schedules, and tax schedule maps.
Type	The type of tax solution: Custom Standard

Tax engine information section

Tax engine information section field descriptions

Field	Description
GL account for input taxes	The general ledger account to which tax in Accounts Payable and Purchasing is to be assigned. By default, the tax details that are automatically generated for input taxes (purchases) will use this GL account. You can edit any system-generated tax detail to change the GL account. This field only appears for standard tax solutions.
GL account for output taxes	The general ledger account to which tax in Accounts Receivable and Order Entry is to be assigned. By default, the tax details that are automatically generated for output taxes (sales) and reverse charges will use this GL account. You can edit any system-generated tax detail to change the GL account. This field only appears for standard tax solutions.
Start date of first tax submission period	The date to begin including taxable transactions in your first tax submission. This date might be the first day you start using Sage Intacct in production. Or, it might be a later date if you're transitioning from another accounting system and plan to submit taxes from the previous system while you run the two systems in parallel. After the first tax submission has been sent to the government, this date cannot be changed. This field only appears for the following tax solutions and these are the earliest dates: Australia GST: May 1, 2019 Canadian Sales Tax: January 1, 2020 Deutsche Umsatzsteuer: January 1, 2024 New Zealand GST (Early Adopter): January 1, 2025 Singapore GST (Early Adopter): January 1, 2025 South Africa VAT: January 1, 2019 TVA Française: January 1, 2023 United Kingdom VAT: January 1, 2016
Enable multiple taxes per line	Allows multiple taxes to be applied to a single line item in General Ledger, Accounts Payable, and Accounts Receivable transactions. When this option is turned on, each line item has a Multiple taxes on line checkbox. When the checkbox is selected, the user can apply multiple tax details for the line item in the details area. This checkbox appears only for a VAT solution and depends on the VAT solution: Australia GST. Multiple taxes on line can be enabled. For example, you might want to enable this option to extend the standard setup for Australia GST if you need to partially reclaim input tax. Canadian Sales Tax. Multiple taxes on line can be enabled. Custom VAT. Multiple taxes on line can be enabled. Deutsche Umsatzsteuer, Multiple taxes on line can be enabled. New Zealand GST (Early Adopter). Multiple taxes on line cannot be enabled. The checkbox does not appear. Singapore GST (Early Adopter). Multiple taxes on line is enabled by default and is always on. The checkbox does not appear. South Africa VAT. Multiple taxes on line cannot be enabled. The checkbox does not appear. TVA Française. Multiple taxes on line is enabled by default and is always on. The checkbox does not appear. United Kingdom VAT. Multiple taxes on line is enabled by default and is always on. The checkbox does not appear. Turning on this option is permanent.
Offset credits on sales and purchases for VAT reporting	This checkbox appears only for South Africa VAT. It controls whether returns to vendors and credits to customers are reported in the adjustment fields or as offsets in the input and output VAT fields on the VAT201 Declaration. When this option is enabled, the tax amounts are reported as follows in the adjustment fields: Purchasing debits (AP adjustments and Purchasing returns). Field 15 - Other goods and/or services supplied to you (not capital goods) Sales credits (AR adjustments and Order Entry returns). Field 1 - Standard rate (only goods and/or services), Field 4 - Standard rate (excluding capital goods and/or services and accommodation) When this option is not enabled, the tax amounts are reported as follows in the input and output VAT fields: Purchasing debits (AP adjustments and Purchasing returns). Field 12 - Output Tax Adjustments: Other and imported services Sales credits (AR adjustments and Order Entry returns). Field 18 - Input Tax Adjustments: Other Turning on this option is permanent.

Tax setup updates section

Appears only for standard tax solutions.

Tax setup updates section field descriptions

Field	Description
Install updates	Select to install any updates to the tax objects for tax solution. To review the changes that will be made, see Update a standard VAT or GST setup .
Last updated	The date that an update was last installed.

Entities tab

This tab appears only for multi-entity organizations. The table displays the entities that use this tax solution.

Entities tab field descriptions

Field	Description
Entity	Name of the entity.
Tax ID	The tax number or the entity

Tax schedule maps tab

This tab appears only if the tax solution is a standard or custom VAT solution or an Advanced Tax solution. The table displays the tax schedule maps that have been defined for the tax solution.

Tax schedule maps tab field descriptions

Field	Description
Item tax group	The item tax group to which the tax schedule map applies. For the VAT tax solutions, this field is ignored in Accounts Payable and Accounts Receivable when Intacct evaluates which tax schedule maps to apply.
Contact tax group	The contact tax group to which the tax schedule map applies.
Tax schedule	The tax schedule that's applied for the tax schedule map. The tax schedule defines the tax details (or tax rates) that are applied.

Tax details tab

This tab appears only if the tax solution is a standard or custom VAT solution or an Advanced Tax solution. The table displays the tax details that have been defined for the tax solution.

Tax details tab field descriptions

Field	Description
Detail ID	Name of the tax detail.
Description	Description of the tax detail.
Percent	The tax rate for the tax detail. For example, 10 means 10%.