Setting up tax codes

The GST calculation relies on proper VAT boxes (GESVTB) settings to define the relationship between tax codes and tax labels. If the VAT boxes setup is incomplete or incorrect, the GST data update is not carried out in the GST reporting periods function.

To avoid errors:

• There cannot be any missing or incorrect VAT box settings.
• Accounting lines must have VAT codes defined in the VAT boxes setup.
• Accounting lines with accounts must have tax management or tax allocation settings that are consistent with the according setting for the VAT code of the line created in the VAT box setup.

See the help for the VAT boxes function (GESVTB) for complete help.

Describing the VAT preparatory report structure

On the VAT boxes section, you can describe the report structure based on the accounting entry details. The table below shows the Australian VAT box label along with the long and short descriptions.

The VAT box type for all Australian VAT boxes is Detail. The Formula and Formula condition fields can be left empty.

VAT box	Long title	Short description	Type
1A	GST on sales	GST on Sales	Detail
G1	Total sales	Total sales	Detail
G2	Export sales	Export sales	Detail
G3	Other GST-free sales	GST-free sal	Detail
G4	Input taxed sales	Input tx sal	Detail
1B	GST on purchase	GST on purch	Detail
G10	Capital purchases (including any GST)	Cap. purch.	Detail
G11	Non-capital purchases (including any GST)	Non. cap. pu	Detail
G13	Purchases for making input taxed sales	Pur inp sal	Detail
G14	Purchases without GST in the price	Pur no GST	Detail

Matching values to entry lines

On the Detail section, you can define the combination of values to match entry lines so they can be extracted and included in the VAT declaration calculation.

The table below shows the VAT box and related tax code.

Example: Journal entries with the tax code AUPCG are considered in label 1B with the tax amount and also in label G10 with both subjected and tax amount.

VAT box	Short description	Tax management	Tax allocation	Tax code
1A	GST on Sales	Tax account	Collected sales	AUSGS
1B	GST on purch	Tax account	Deductible purchases	AUPCG
1B	GST on purch	Tax account	Deductible purchases	AUPNG
G1	Total sales	Subjected	Collected sales	AUSEP
G1	Total sales	Subjected	Collected sales	AUSFR
G1	Total sales	Subjected	Collected sales	AUSGS
G1	Total sales	Subjected	Collected sales	AUSIN
G1	Total sales	Tax account	Collected sales	AUSGS
G2	Export sales	Subjected	Collected sales	AUSEP
G3	Free/exmp	Subjected	Collected sales	AUSFR
G4	Input taxed	Subjected	Collected sales	AUSIN
G10	Cap. purch.	Subjected	Deductible purchases	AUPCF
G10	Cap. purch.	Subjected	Deductible purchases	AUPCG
G10	Cap. purch.	Tax account	Deductible purchases	AUPCG
G11	Non. cap. pu	Subjected	Deductible purchases	AUPNF
G11	Non. cap. pu	Subjected	Deductible purchases	AUPNG
G11	Non. cap. pu	Tax account	Deductible purchases	AUPNG
G14	Pur no GST	Subjected	Deductible purchases	AUPCF
G14	Pur no GST	Subjected	Deductible purchases	AUPNF

This list reflects current tax codes for GST reporting. If you have been using Sage X3 prior to V11, see Appendix 1: Replaced or removed tax codes for tax codes that have been removed or replaced.

Tax accounting codes

The following tax accounting codes for Australian legislation are part of the standard product delivery:

Description	Collected tax (1)	Purchase tax to deduct (2)	Fixed asset tax to deduct (3)	Tax to deduct/G & S (4)	Adjustment to deduct (13)	Collected adjustment (14)
AU Capital Purchase GST	390000	391010	391010	391010	391010	390000
AU Non Capital GST	390000	391000	391000	391000	391000	390000
AU Sales GST	390000	391000	391000	391000	391000	390000

BP tax rules

The following table shows the BP tax rules defined in the Australian reference folder setup.

Tax rule	Description	Rule type
DOM	Domestic	Normal
EXM	Australian Domestic Exempt	Tax exempt
FOR	Australian Foreign BP	Export