Difference between revisions of "Tax Codes List"
From TrueERP wiki
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Below is a list of the Tax Codes that are pre-configured in ERP Software. Some of these codes will never be used by the majority of businesses and are therefore inactive by default but can be made active if required. | Below is a list of the Tax Codes that are pre-configured in ERP Software. Some of these codes will never be used by the majority of businesses and are therefore inactive by default but can be made active if required. | ||
| − | + | ==== Accessing Tax Codes ==== | |
*Select the '''Accounts''' drop down menu at the top left of the main screen | *Select the '''Accounts''' drop down menu at the top left of the main screen | ||
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Also can go to the '''General''' Tab and select the '''Tax Code List''' button | Also can go to the '''General''' Tab and select the '''Tax Code List''' button | ||
| − | + | Note: Always consult your accountant and ERP Support before creating a new tax code as there may | |
| + | be implications for reporting. | ||
*Active tax codes are ticked in the list | *Active tax codes are ticked in the list | ||
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*Save | *Save | ||
| − | + | ==== The Tax Code List ==== | |
| + | |||
| + | {| cellspacing="1" cellpadding="1" border="0" align="left" style="width: 743px; height: 441px;" | ||
| + | |- | ||
| + | ! align="left" scope="col" | Code | ||
| + | ! align="left" scope="col" | Description | ||
| + | |- | ||
| + | | CAF | ||
| + | | Capital Acquisition - GST Free | ||
| + | |- | ||
| + | | CAG | ||
| + | | Capital Acquisition - Inc GST | ||
| + | |- | ||
| + | | CAI | ||
| + | | Capital Acquisition - for making Input Tax | ||
| + | |- | ||
| + | | E | ||
| + | | Tax Exempt | ||
| + | |- | ||
| + | | EXP | ||
| + | | GST Free Exports | ||
| + | |- | ||
| + | | FRE | ||
| + | | GST Free Supplies | ||
| + | |- | ||
| + | | GST | ||
| + | | Supplies Including GST | ||
| + | |- | ||
| + | | NT | ||
| + | | No Tax | ||
| + | |- | ||
| + | | INP | ||
| + | | Input Taxed Sales | ||
| + | |- | ||
| + | | NCF | ||
| + | | Non-Capital Acquisition - GST Free | ||
| + | |- | ||
| + | | NCG | ||
| + | | Non-Capital Acquisition - Inc GST | ||
| + | |- | ||
| + | | NCI | ||
| + | | Non-Capital Acquisition - for making Input Tax | ||
| + | |- | ||
| + | | INP | ||
| + | | Input Taxed Sales | ||
| + | |- | ||
| + | | NCF | ||
| + | | Non-Capital Acquisition - GST Free | ||
| + | |- | ||
| + | | NCG | ||
| + | | Non-Capital Acquisition - Inc GST | ||
| + | |} | ||
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You should not replace any of the above codes as reports such as your BAS depend on the correct tax code being used. | You should not replace any of the above codes as reports such as your BAS depend on the correct tax code being used. | ||
| − | + | ==== What Tax Codes to Use ==== | |
'''WC, WET and WGST''' These are only used by wine wholesalers. Wine Equalisation Tax is a value based tax on wine consumed in Australia. WEO applies at 29% of the value of the wine at the last wholesale sale excluding GST. | '''WC, WET and WGST''' These are only used by wine wholesalers. Wine Equalisation Tax is a value based tax on wine consumed in Australia. WEO applies at 29% of the value of the wine at the last wholesale sale excluding GST. | ||
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'''EXP''' EXP is only used for Export Sales and is used to populate Box G2 on the BAS. If you don't make export sales leave inactive | '''EXP''' EXP is only used for Export Sales and is used to populate Box G2 on the BAS. If you don't make export sales leave inactive | ||
| − | '''E''' Used for acquisitions officially exempt from GST | + | '''E''' Used for acquisitions officially exempt from GST e.g. Bank Fees |
'''NT''' Any other transaction that is not subject to GST | '''NT''' Any other transaction that is not subject to GST | ||
| − | '''INP, CAI and NCI''' These are Input taxed supplies codes and are only applicable if your business has income streams from Residential Rentals, owns a Gold Mine, owns a Bank or provides Financial Supplies or runs a School Tuck Shop. Most businesses can leave these codes inactive. Otherwise use INP for income, CAI for capital purchases and NCI for non-capital | + | '''INP, CAI and NCI''' These are Input taxed supplies codes and are only applicable if your business has income streams from Residential Rentals, owns a Gold Mine, owns a Bank or provides Financial Supplies or runs a School Tuck Shop. Most businesses can leave these codes inactive. Otherwise use INP for income, CAI for capital purchases and NCI for non-capital purchases. |
'''GST and FRE''' These codes are used for sales. GST where GST is applicable which is most sales and FRE for GST free sales such as medical supplies and some foods. Do not use these codes for purchases or your BAS report will not be accurate | '''GST and FRE''' These codes are used for sales. GST where GST is applicable which is most sales and FRE for GST free sales such as medical supplies and some foods. Do not use these codes for purchases or your BAS report will not be accurate | ||
| − | '''CAG and CAF''' These codes are for Capital Acquisitions. | + | '''CAG and CAF''' These codes are for Capital Acquisitions. i.e. Items that will be depreciated such as cars, furniture etc. Use CAG for acquisitions with GST included and CAF for tax free acquisitions such as Water Rights and items purchased from a source not registered for GST. |
| − | '''NCG and NCF '''These are used for non-capital acquisitions such as inventory, office supplies, phones etc. NCG for acquisitions including tax (the majority of purchases) and NCF for acquisitions that are tax free such as Bank Charges and fees to contractors that are not registered for GST but have an ABN. | + | '''NCG and NCF '''These are used for non-capital acquisitions such as inventory, office supplies, phones etc. NCG for acquisitions including tax (the majority of purchases) and NCF for acquisitions that are tax free such as Bank Charges and fees to contractors that are not registered for GST but have an ABN. |
Revision as of 11:15, 2 March 2011
Overview
Below is a list of the Tax Codes that are pre-configured in ERP Software. Some of these codes will never be used by the majority of businesses and are therefore inactive by default but can be made active if required.
Accessing Tax Codes
- Select the Accounts drop down menu at the top left of the main screen
- Select Tax Codes (to create a new code)
- Select Tax Code List (opens the list of codes)
Also can go to the General Tab and select the Tax Code List button
Note: Always consult your accountant and ERP Support before creating a new tax code as there may be implications for reporting.
- Active tax codes are ticked in the list
- To activate a tax code double click the code and tick Active in the new window that opens.
- Save
The Tax Code List
| Code | Description |
|---|---|
| CAF | Capital Acquisition - GST Free |
| CAG | Capital Acquisition - Inc GST |
| CAI | Capital Acquisition - for making Input Tax |
| E | Tax Exempt |
| EXP | GST Free Exports |
| FRE | GST Free Supplies |
| GST | Supplies Including GST |
| NT | No Tax |
| INP | Input Taxed Sales |
| NCF | Non-Capital Acquisition - GST Free |
| NCG | Non-Capital Acquisition - Inc GST |
| NCI | Non-Capital Acquisition - for making Input Tax |
| INP | Input Taxed Sales |
| NCF | Non-Capital Acquisition - GST Free |
| NCG | Non-Capital Acquisition - Inc GST |
You should not replace any of the above codes as reports such as your BAS depend on the correct tax code being used.
What Tax Codes to Use
WC, WET and WGST These are only used by wine wholesalers. Wine Equalisation Tax is a value based tax on wine consumed in Australia. WEO applies at 29% of the value of the wine at the last wholesale sale excluding GST.
EXP EXP is only used for Export Sales and is used to populate Box G2 on the BAS. If you don't make export sales leave inactive
E Used for acquisitions officially exempt from GST e.g. Bank Fees
NT Any other transaction that is not subject to GST
INP, CAI and NCI These are Input taxed supplies codes and are only applicable if your business has income streams from Residential Rentals, owns a Gold Mine, owns a Bank or provides Financial Supplies or runs a School Tuck Shop. Most businesses can leave these codes inactive. Otherwise use INP for income, CAI for capital purchases and NCI for non-capital purchases.
GST and FRE These codes are used for sales. GST where GST is applicable which is most sales and FRE for GST free sales such as medical supplies and some foods. Do not use these codes for purchases or your BAS report will not be accurate
CAG and CAF These codes are for Capital Acquisitions. i.e. Items that will be depreciated such as cars, furniture etc. Use CAG for acquisitions with GST included and CAF for tax free acquisitions such as Water Rights and items purchased from a source not registered for GST.
NCG and NCF These are used for non-capital acquisitions such as inventory, office supplies, phones etc. NCG for acquisitions including tax (the majority of purchases) and NCF for acquisitions that are tax free such as Bank Charges and fees to contractors that are not registered for GST but have an ABN.
