Standard tax solution workflow

The Taxes application offers several tax solutions to fit your business needs. You can set a tax solution at the company level, and you can also set a different tax solution for each entity. An entity can only have one tax solution.

The following tax solutions can be used in the Taxes application for both single and multi-entity companies:

  • Standard tax solution for VAT and GST

  • Streamlined tax solution for VAT and GST

  • Custom tax solution for VAT and GST

  • No Tax

  • Simple Tax

  • Advanced Tax

  • Avalara AvaTax for sales and use tax

The tax solution that you select determines the type of tax submission process and tax reporting process you use.

About standard tax solutions

This workflow shows how a standard VAT or GST tax solution supports tax calculation, tax submission through Sage Regulatory Reporting, and tax reporting with custom reports. The tax solution configured for an entity determines how tax is calculated for that entity, how tax submissions are prepared, and which reporting options are available. The preconfigured tax setup provided by standard tax solutions helps automate tax processing and reporting for supported jurisdictions.

This workflow applies to companies or entities that use the following standard tax solutions:

  • Australia GST

  • Canadian Sales Tax - SYS

  • Deutsche Umsatzsteuer - SYS

  • South Africa VAT

  • TVA Française - SYS

  • United Kingdom VAT

If you use one of our streamlined standard tax solutions, see Streamlined standard tax solution workflow. If you use a custom tax solution, see Custom tax solution workflow.

For companies and entities that need to calculate sales and use tax, see Sales and use tax overview.

Before you begin

Before using this workflow:

Workflow for standard tax solutions

When you configure an entity with a standard tax solution, Sage Intacct automatically creates preconfigured tax objects for the selected jurisdiction. These tax objects include tax details, tax schedules, tax schedule maps, item tax groups, and contact tax groups that work together to calculate tax on transactions. The resulting tax records can be used to create tax submissions through Sage Regulatory Reporting and to generate tax reports and custom reports for analysis and reconciliation.

  • Create transactions in the supported applications.

  • Sage Intacct applies the tax configuration defined by the standard tax solution.

  • Tax details and calculated tax amounts are recorded and stored as tax records.

  • These tax records become the source data for tax submissions and tax reporting processes.

  • Close the books for the reporting period.

  • Create a tax submission in the Taxes application.

  • Sage Intacct prepares the source tax data and sends it to Sage Regulatory Reporting for processing.

  • Sage Regulatory Reporting prepares the tax return for the selected jurisdiction.

  • Depending on the jurisdiction, the completed return can be submitted electronically to the tax authority or generated for external submission.

  • When you start a submission, the included transactions are locked to prevent changes that could affect the submission.

  • Electronic submissions are automatically marked as filed when completed. For manual submissions, you can mark them as filed to close the submission and unlock the tax records.

  • Use the custom reports provided for supported standard tax solutions to review tax activity and tax liabilities.

  • Generate summary reports, detail reports, and region-specific reports where available.

  • Use tax reporting to analyze the data used by Sage Regulatory Reporting to calculate tax return amounts.

  • Use reports to support reconciliation and tax review activities.

Regional availability

Standard tax solutions in the Taxes application are available in the following regions:

  • Australia GST

  • Canadian Sales Tax - SYS

  • Deutsche Umsatzsteuer - SYS

  • South Africa VAT

  • TVA Française - SYS

  • United Kingdom VAT