Tax and tax compliance overview

Sage Intacct supports determining, capturing, and reporting on sales and use tax, VAT, and GST.

Depending on the countries in which your organization operates, you might need to collect and report on a combination of sales and use tax, VAT, and GST.

For a general overview of how Sage Intacct calculates tax, see How tax works in the Taxes application.

Tax determination for sales and use tax

If you operate only in the United States, you can use the following tax calculation methods to determine and capture sales and use tax:

  • Simple Tax: Manually calculate and enter a tax amount in the subtotals section for invoices in Accounts Receivable. You can automatically or manually apply a flat tax (an amount or percentage) for transactions in Order Entry and Purchasing.
  • Advanced Tax: Set up and maintain the tax jurisdictions and tax rates in Intacct using item and contact tax groups, tax details, tax schedules, and tax schedule maps. Taxes are automatically determined in the applicable transactions.
  • Avalara AvaTax service: Subscribe to Avalara's AvaTax service. Avalara is responsible for managing and maintaining all the tax rate tables for the different jurisdictions. Taxes are automatically determined in the applicable transactions by Avalara. This tax service is available in Accounts Receivable, Order Entry, and Purchasing.

In companies that do not have a Taxes subscription, you can use Advanced Tax in Accounts Receivable, Purchasing, and Order Entry. If your company is subscribed to Taxes, you can only use Advanced Tax in Order Entry and Purchasing.

Learn more about sales and use tax.

Tax determination for VAT and GST

If you operate in a country other than the United States, you can use the Taxes application to capture VAT or GST.

The Taxes application uses tax solutions. Standard tax solutions come pre-configured by Intacct, and custom tax solutions let you configure a solution specific to your needs. The following standard tax solutions are available:

  • 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

For example, if you operate in the United Kingdom, you can use the standard tax solution for United Kingdom VAT. If you operate in a country for which Intacct does not provide a standard VAT or GST solution, you can create a custom solution for that country.

In addition to supporting tax solutions for VAT or GST, the Taxes application also supports Simple Tax, Advanced Tax, and integrated tax services for sales and use tax. If you're a multinational organization, you can use the Taxes application to determine and capture a combination of sales and use tax, VAT, and GST by using different tax solutions for each entity.

For example, if you're headquartered in the United Kingdom and have foreign subsidiaries in the Netherlands, you can use the United Kingdom VAT standard tax solution for your entities in the United Kingdom and set up a custom VAT tax solution for your entities in the Netherlands. Or, if you're headquartered in the United States and have foreign subsidiaries in the United Kingdom, you can set up Advanced Tax or one of our integrated tax services for your entities in the United States and use the United Kingdom VAT standard tax solution for your entities in the United Kingdom.

Learn more about VAT and GST.

Reporting for tax filing

If your organization is required to collect and report VAT or GST, you can use tax reports to review tax liabilities, analyze tax calculations, and prepare information for submission to the appropriate tax authority. Intacct provides several reporting options that support both standard and custom tax solutions.

The following report types are available:

  • Custom Report Writer reports: CRW reports let you review tax liabilities, analyze the details used to calculate tax return amounts, and prepare tax filing information. For custom tax solutions, these reports can be used to gather the information required for tax submissions.

  • VAT100 reports and dashboard: This dashboard lets you preview VAT100 return information before closing the books and running a tax submission. The dashboard provides a snapshot of VAT100 box reports, late entries, and transaction-level tax details.

  • Tax detail box reports: You can create tax detail box reports to calculate tax liabilities for a defined period, review existing tax submissions, and generate reports that align with the VAT or GST return requirements of a tax authority.

Use these reports to validate tax data, reconcile tax amounts, identify reporting discrepancies, and prepare tax returns for submission to local tax authorities.

Learn more about reporting for tax filing.

Payment reporting with 1099s

If your organization is required to report payments made to vendors and other payees, you can use the 1099s functionality to prepare and submit 1099 and 1096 forms. The 1099s workflows support the year-end reporting process by helping you track reportable transactions, review and update 1099 information, generate 1099 reports, and print or electronically file forms.

You can use the 1099s functionality to prepare for tax season, verify reported amounts before filing, update vendor reporting information, and maintain vendor W-9 information. The 1099s section also includes FAQs, training resources, and troubleshooting information to help you complete the filing process.

Learn more about 1099s.

Reporting for tax and audit compliance

Depending on the countries in which your organization operates, you might be required to generate reports or exports to support local tax and regulatory compliance requirements. Intacct provides country-specific reporting and export capabilities for jurisdictions that require information to be submitted to tax authorities or provided to auditors.

Intacct supports tax compliance reports for the following regions:

Australia

Taxable Payments Annual Report (TPAR): This lets you report eligible contractor payments.

Canada

Statement of contract payments T5018: This is for reporting payments made to subcontractors in the construction industry.

France

Accounting Entries File (FEC) report: Generates an Accounting Entries File (FEC) for tax audits.

Germany

DATEV file export: This lets you export accounting data in a format used by German accountants and tax advisors.

GoBD export: Exports accounting data to support German bookkeeping, retention, and audit requirements.

Learn more about tax compliance reports.

E-invoicing for France

If your organization operates in France, you might be required to comply with the French Electronic Invoicing Reform (RFE), which introduces mandatory electronic invoicing and reporting requirements for tax-registered companies. Intacct supports these requirements through e-invoicing and e-reporting capabilities that help organizations exchange invoice data and report transaction information to tax authorities.

Learn more about E-invoicing for France.