Re: EU VAT

[Nigel Titley <..hidden..>]

On Mon, 2011-08-08 at 10:15 -0700, Chris Travers wrote:
> On Mon, Aug 8, 2011 at 8:34 AM, lrspares45 <..hidden..> wrote:

> 
> Ok.  What goods and services are taxable at what rates are also set by
> the country, right?

Correct. Some countries (the UK is one) have multiple rates of tax. 
> 
> Is this a cash-basis form like the 1099 form in the US?  or is it
> accrual basis?  In other words, if you make the purchase at the end of
> one year and pay for it the next year, which year do you report it on?

It depends. You can choose to work either on an accrual or a cash basis.
Small businesses tend to work on a cash basis, larger ones (like
ourselves) work on an accrual basis. When you register for VAT you tell
the tax man what accounting system you want to work on.

> I ask because in LedgerSMB 1.3 we have the ability to track purchase
> items that have to be recorded on a customer or vendor-specific tax
> form.  Right now the only tax form supported is the US 1099 form, but
> the reporting could be modified to provide similar reporting of line
> items for other forms.

This *might* help. But only if you can choose to report, or not,
depending on whether you export or don't.

> Ok.  I will look at this.  One thing I would like to see us focusing
> on after 1.3 RC1 is looking at this issue and what needs to be done to
> make LedgerSMB better.

Yes, VAT handling is really vital for LedgerSMB to be useful in Europe.
> Helps a great deal.

If you need to know more then just ask. My cousin is a VAT inspector
(she partly does our books for us) so we get a lot of free advice.

Nigel