Selecting the method to calculate sales tax on invoices in the Marginal base field

Dynamics AX 4.0

On the tab of the form, you define how the sales tax calculation of the selected sales tax code is applied to the tax base amounts on the invoice. You do this by selecting an amount category in the drop-down list and an appropriate value in the drop-down list.

Various combinations of values in these fields produce very different sales tax calculations, as shown by the following examples.

The examples use the same tax interval values, which are set up for the each tax code in the form. To open this form, click on the form.

ImportantImportant

If the marginal base on any of your sales tax codes is based on line or unit, the value of the field on the form must be set to .


NoteNote

In the United States, sales tax is usually calculated for each invoice line, and the total sales tax on the invoice is the sum of sales taxes on each of the lines. In Europe, it is common to total the base amount for all invoice lines. The calculated base is then used to calculate taxes.


Calculate sales tax based on the net amount for the invoice lines, excluding any other taxes.

Example

The sales tax rates are set up in the following intervals:

Amount interval

Tax rate

0 - 50

30%

50 - 100

20%

100 - 0 (> 100)

10%

NoteNote

The upper limit 0 in the last interval means that all amounts more than 100 are included in the interval.


=

=

You buy 8 lamps that cost EUR 25 each. The net amount for the invoice line is EUR 200.

The tax is calculated as follows:

Total sales tax = 50 x 30% + 50 x 20% + 100 x 10% = 15 + 10 + 10 = EUR 35.00.

Total invoice amount = 200.00 + 35.00 = EUR 235.00.

Variation   If the invoice is created using two lines with 4 items on each line, the net amount per line is EUR 100 and the sales tax is calculated as follows:

Sales tax line 1 = 50 x 30% + 50 x 20% = 15 + 10 = EUR 25.00.

Sales tax line 2 = 50 x 30% + 50 x 20% = 15 + 10 = EUR 25.00.

Total sales tax = 25.00 + 25.00 = EUR 50.00.

Total invoice amount = 200.00 + 50.00 = EUR 250.00.

Calculate sales tax based on the value of each unit, excluding any other taxes. This can also involve the price of the unit that is specified in the lookup field, if the sales tax code uses this field.

Example

The sales tax rates are set up in the following intervals:

Amount

Tax rate

0 - 50

30%

50 - 100

20%

100 - 0 (> 100)

10%

= .

= .

You buy 8 lamps that cost EUR 25 each. The net amount for the invoice line is EUR 200.

The tax is calculated as follows:

Sales tax per unit = EUR 25 x 30% = EUR 7.50.

Total sales tax = EUR 7.50 x 8 units = EUR 60.00.

Total invoice amount = 200.00 + 60.00 = EUR 260.00.

Calculate sales tax based on the total value for the invoice, excluding any other taxes.

Example

The sales tax rates are set up in the following intervals:

Amount

Tax rate

0 - 50

30%

50 - 100

20%

100 -0 (> 100)

10%

= .

= .

You buy 8 lamps that cost EUR 25 each. The net amount for the invoice line is EUR 200.

The tax is calculated as follows:

Total sales tax = 50 x 0.30 + 50 x 0.20 + 100 x 0.10 = EUR 35.00.

Total invoice amount = 200.00 + 35.00 = EUR 235.00.

Note   It makes no difference how many lines the invoice has, because the value of the field is .

Calculate sales tax based on the value of the line, including any other taxes.

NoteNote

In a sales tax group, you can only have one sales tax code with this selection in the field.


Example

The sales tax rates are set up in the following intervals:

Amount

Tax rate

0 - 50

30%

50 - 100

20%

100 - 0 (> 100)

10%

There is a special duty on each lamps of EUR 5.00. The duty is added to the net amount before the sales tax calculation.

You buy 8 lamps that cost EUR 25 each. The net amount for the invoice line is EUR 200.

The gross amount for the invoice line is EUR 200 + (8 x 5.00) = EUR 240.00.

The tax is calculated as follows:

Total sales tax = 50 x 0.30 + 50 x 0.20 + 140 x 0.10 = EUR 39.00.

Total duty = 5.00 x 8 = EUR 40.00.

Total invoice amount = 200.00 + 39.00 + 40.00 = EUR 279.00.

Variation   If the invoice is created using two invoice lines with 4 items on each line, the net amount per invoice line is EUR 100.

The gross amount per invoice line would be EUR 120, and the sales tax is created as follows:

Sales tax invoice line 1 = 50 x 0.30 + 50 x 0.20 + 20 x 0.10 = EUR 27.00.

Sales tax invoice line 2 = 50 x 0.30 + 50 x 0.20 + 20 x 0.10 = EUR 27.00.

Total sales tax = 27.00 + 27.00 = EUR 54.00.

Total duty = 5.00 x 8 = EUR 40.00.

Total invoice amount = 200.00 + 54.00 + 40.00 = EUR 294.00

Calculate sales tax based on the value of the unit, including any other taxes.

NoteNote

In a sales tax group, you can only have one sales tax code with this selection in the field.


Example

The sales tax rates are set up in the following intervals:

Amount

Tax rate

0 - 50

30%

50 - 100

20%

100 - 0 (> 100)

10%

= .

There is a special duty on each lamp of EUR 5.00. The duty is added to the net amount before the sales tax calculation.

You buy 8 lamps worth EUR 25.00 each. The gross amount per unit is EUR 30.00.

The tax is calculated as follows:

Sales tax per unit = 30 x 30% = EUR 9.00.

Total sales tax = 9.00 x 8 = EUR 72.00.

Total duty = 5.00 x 8 = EUR 40.00.

Total invoice amount = 200.00 + 72.00 + 40.00 = EUR 312.00.

Calculate sales tax based on the total value for the invoice, including any other taxes.

NoteNote

In a sales tax group, you can only have one sales tax code with this selection in the field.


Example

The sales tax rates are set up in the following intervals:

Amount

Tax rate

0 - 50

30%

50 - 100

20%

100 - 0 (> 100)

10%

There is a special duty on each lamp of EUR 5.00. The duty is added to the net amount before the sales tax calculation.

You buy 8 lamps worth EUR 25 each. The net amount for the invoice is EUR 200.

The gross amount for the invoice is EUR 200 + (8 x 5.00) = EUR 240.00.

The tax is calculated as follows:

Total sales tax = 50 x 0.30 + 50 x 0.20 + 140 x 0.10 = EUR 39.00.

Total duty = 5.00 x 8 = EUR 40.00.

Total invoice amount = 200.00 + 39.00 + 40.00 = 279.00.

Note   It makes no difference how many lines the invoice has, because the value in the field is .

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