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System Administration / ARCHIBUS Administrator - Application Configuration

Defining VAT Percent Values

To implement the Enhanced Global Feature Set, you use the Define VAT Percent Values task to define default VAT percents per country and cost category. A lease or cost administrator entering cost records can override this percentage as needed. If no override is entered, the system uses the default VAT percent value entered using this task to calculate the VAT for cost records of this cost category and country.

How the System Determines the VAT Percent

VAT amount is calculated by applying a VAT Percent value to the Base Cost for a good or service. The VAT Percent (%) can be determined in one of the following ways.

• Defining VAT % by country and cost category. Tax law dictates a particular tax rate for each country and cost category (for example. lease payments or water bills in a specific country have a particular VAT percentage). The Business Process Owner uses Cost Administration / Define Default VAT Percent task to predefine defaults for VAT Percentage (%) per country and cost category. The program then uses that VAT Percent (%) by default when the Cost or Lease Administrator enters cost records using these cost categories. See Defining VAT Percent Values.

• Overrides for the default VAT Percent for specific recurring or scheduled costs. Tax law allows exemptions for VAT tax for specific payments. For instance, if you are charging rent to a charity, that rent payment may be exempt from VAT tax altogether. In cases where the tax code provides total exemptions or exceptions for specific taxes, that exception or exemption may appear in the lease agreement. The Lease Administrator then uses that information to enter in the correct VAT Percentage (%) for recurring costs (such as base rent) or one-time costs (such as snow removal payments). If the cost is totally exempt from VAT, you can enter 0.00 as the percent to indicate this. For this reason, the system allows the lease or cost administrator to enter in a VAT Percentage (%) override for any recurring or scheduled cost record.
• Override by entering VAT Amounts: If a lease has an exception that specifies they pay a specific VAT Amount, a lease or cost administrator can enter this amount in the VAT Override Amount field when entering the cost transaction.
• Lease Exemption: If a lease is exempt from paying VAT for any of its associated costs, you can indicate this by setting the VAT Excluded flag for the lease to Yes. See Excluding a Lease from All VAT Costs.

When you run the Update VAT Amount action, the system checks if there is a VAT override or lease exemption entered for any of the costs being updated. If an override or exemption is found, the override percentage or 0.00 (for exemptions) is used to calculate the VAT amount. If no override or exemption is found, the VAT %by country and cost category is used.

Defining VAT Percent Values

The Copy Cost Categories action copies all existing Cost Categories for a selected country for which VAT Percent values don’t already exist. After running this action, you are provided with a pop-up window in which to enter the VAT Percent Value to associate with the new records. This enables you to enter the same VAT percent value for multiple cost categories for the selected country without overriding any cost categories that have already been entered for the country.

The Assign VAT Percent action enables you to enter a VAT Percent Value for a single selected cost category for a country.

To define VAT percent values:

1. Select System Administration / ARCHIBUS Administrator - Application Configuration / Define VAT Percent Values.
2. Select the Country.
3. Click Copy Cost Categories.
4. In the Define VAT Percent pop-up window, enter the VAT percent value to assign to these cost categories. You will be able to change categories if needed after running this action. Click Save.
5. The VAT Percent Values panel; shows the cost categories with the percent value you entered.
6. To change a cost category:
   1. Select the Cost Category.
   2. Click Assign VAT Percent.
   3. In the Define VAT Percent pop-up window, enter the VAT percent that the selected country uses for this cost category.
   4. Click Save.