VAT / GST on Deposits
VAT / GST on Deposits
Hi All
I am looking for some ideas on the above issue:
Australian manufacturing client using order management and receivables regularly takes large deposits on entering sales orders. To comply with Australian Goods and Services Tax (GST - same as VAT) regulations the receipt of money as a deposit is a tax event and therefore they need to account for the GST component of the deposit.
Ideally client would like to record the payment as a commitment (deposit invoice) from the sales order. A receipt is then matched to the deposit invoice.
However from my research it looks as if the deposit transaction type cannot separate the tax component. Apparently there is a German localisation that may allow allocation of a tax code to the receipt?
Hi All
I am looking for some ideas on the above issue:
Australian manufacturing client using order management and receivables regularly takes large deposits on entering sales orders. To comply with Australian Goods and Services Tax (GST - same as VAT) regulations the receipt of money as a deposit is a tax event and therefore they need to account for the GST component of the deposit.
Ideally client would like to record the payment as a commitment (deposit invoice) from the sales order. A receipt is then matched to the deposit invoice.
However from my research it looks as if the deposit transaction type cannot separate the tax component. Apparently there is a German localisation that may allow allocation of a tax code to the receipt?
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