Sample of setting up Tax Tables in Inventory Receipts

For Namibia Tax groups you will need 2 tax groups and 3 "jurisdictions" that must be setup as follows:

Item $100.00

Import duties - 10%

= $10.00

ASD - 10% op $110.00

= $11.00

GST - 8% on $100.00 or $110.00 or $121.00 (110.00+11.00 - added value)

If GST is calculated on $100.00 then GST must be your first jurisdiction. If GST is calculated on $110.00 then GST must be your second jurisdiction and If GST is calculated on $121.00 then GST must be your third jurisdiction.

You must create the following descriptions in your "Company Profile".

Item tax status description Vendor tax status description

0 Taxable item 1 0 Taxable vendor 1

1 Taxable item 2 1 Taxable vendor 2

2 Taxable item 3 2 Taxable vendor 3

3 Non taxable 3 Non taxable vendor

The number of taxable items/vendors will depend on how many ASD % exist. If there are only 5%, 10% and 15%, you will only need three. You can use any description, for instance if you know it is 5% on necessities, 10% on useable items and 15% on luxury items, then you can use these descriptions.

If you go to tax groups that include import duties in the "File Maintenance" option you need to setup the following jurisdictions. Depending on what GST is calculated, you must decide what your first jurisdiction must be.

Method one: GST on $100.00

1. Create a Jurisdiction for GST.

On the first screen you will find an option "Taxable Yes/No". Select "No" because you do not want the next jurisdiction to include GST. On the second screen insert 8.00 for all taxable items and 8.00 for the first vendor status and 0.00 for the non-taxable items.

2. Create a Jurisdiction for IMPORT

On the first screen select "Yes" for the option "Taxable" because you want the next jurisdiction to calculate ASD on the amount including IMPORT. On the second screen insert 10.00 (import %) for all taxable items/vendors

3. Create Jurisdiction for ASD

On the first screen select "No" because this is the last jurisdiction. On the seconds screen select taxable item 1 - 5%

taxable item 2 - 10%

taxable item 3 - 15% etc.

You can select 15% for all vendor tax statuses except non-taxable (highest %).

Method 2: GST on $110.00

Move IMPORT jurisdiction to first jurisdiction and select Taxable "Yes". The GST must be second and then ASD. If the ASD is calculated on added value, Import item $100 + 10% = $110.00 and GST $110 + 10% = $121 then GST must be setup as Taxable "Yes" else if ASD is calculated on $110 then setup GST as Taxable "No".

Method 3: GST on $121

Move IMPORT to first jurisdiction, then ASD then GST with ASD Taxable "Yes".

TAX GROUP NO IMPORT

Create the same jurisdictions ASD and GST as above, leave jurisdiction for IMPORT.

When the order/receipt/return is done you must look at the item and vendor tax status. On the "Header screen" of the order/receipt/return under the vendor information side you will find the "Tax Group en Tax status" . Select the IMPORT tax group if there is import duties else select NO IMPORT. Vendor status (Select the first tax status) The ASD % for all vendor tax statuses are 15% but if the ASD is less and you select the correct item tax ASD% the system will calculate tax on the smallest percentage. This is only to make the processing easier. (If this confuses you, you can change the ASD tax jurisdiction for the vendor tax status to 0 - 5%, 1 - 10% en 2 - 15% and then select the correct tax status on the Header ) On the "Detail screen" select the Item tax status for the ASD percentage. If you still have a problem please do not hesitate to contact us again.

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