In the Taxes tab you are allowed to add the taxes that may be applied to your buy or sell, both buy and sell prices, or to the margin.
For tax Type Buy, only name and percentage can be setup.
For Tax Type Margin, Sell or Buy/Sell, beside name and percentage, we can set the taxes per Brands, Country Areas, Product Category and we have to choose a Calculation Type that defines how the calculation is made on arrangement level (when the product to which the tax is applied is booked into a Deal)
Add a new Tax
Use + ADD TAX to add new tax entry in the system
The Name may be for example VAT 19% so that it is explicit for you during the price calculation process as the names are displayed in the Tax Code drop-down of the Product - Price entry and Arrangement - Price entry sections.
If you select Buy - the drop-down will display the entry in the Buy price section.
The same for Sell, the drop-down will display the entry in the Sell price section.
If Buy/Sell is selected, the tax will appear both on the Sell and on the Buy tax fields.
If Margin is selected, the tax will be applied on the margin calculated on the arrangement. It will be automatically applied per arrangement in the booking process.
Each tax may be edited or deleted by checking it and using the Actions button.
The system allows setting a single tax Type (Sell, Buy/Sell or Margin) for the same combination of brand and country area.
The considered brand will be that of the Deal and the Country area will be considered that of the product.
Tax of Type Sell
Calculation of the tax on arrangement level based on Calculation Type as set in Tax details
If Calculation Type is set to None - original calculation of sell tax is used
If Calculation Type is set to Sell Exclusive Tax - Sell Exclusive Tax is calculated from Sell Inclusive Tax with backward calculation
If Calculation Type is set to Sell Inclusive Tax - Sell Inclusive Tax is calculated from Sell Exclusive Tax by applying the tax
If no tax found matching the combination, use the Sell tax set on the Product/Price level and calculate based on Calculation Type.
If no tax found matching the combination and there is no sell tax set on the Product/Price level, no sell tax will be applied.
Tax on Margin
Tax on margin is automatically applied to sell price.
Margin may represent:
Net Sell minus Gross Buy (Buy including tax) - if calculate_margin_with_buy_ex_tax = false
or
Net Sell minus Net Buy (Buy without tax) - if calculate_margin_with_buy_ex_tax = true
When the price is loaded as arrangement, based on the brand of the deal (which is set as brand of the arrangement) and the country area of the product, the tax on margin will be applied even if those prices that already have a tax set on Product/Price level.
The search to identify the tax on margin which is set by country; is done in such a way to match all products from a certain country even if in the Country Area of the product a lower level is set.
Calculation of the tax on arrangement level based on Calculation Type as set in Tax details
If Calculation Type is set to None - original calculation of sell tax is used
If Calculation Type is set to Sell Exclusive Tax - Sell Exclusive Tax is calculated from Sell Inclusive Tax with backward calculation
If Calculation Type is set to Sell Inclusive Tax - Sell Inclusive Tax is calculated from Sell Exclusive Tax by applying the tax
If no tax found matching the combination, use the Sell tax set on the Product/Price level and calculate based on Calculation Type.
If no tax found matching the combination and there is no sell tax set on the Product/Price level, no sell tax will be applied.
When the tax on margin is applied, only the sell price is recalculated in the arrangement. The buy price remains as set, without being altered by the calculation.
There are certain products (like insurance products for ex.) to which no tax should be calculated. For these kind of products, the tax 0 will be set on arrangement level.
For arrangements where tax on margin applied, the system displays:
Sell ex tax calculated - in current Unit Price field from Sell section
Profit percentage
Markup percentage - in current Markup % section
Margin value on which the tax on margin is applied - label Margin for Tax on margin
Tax amount on margin - label Tax amount on margin
Tax percentage on margin - label Tax % on margin
Deal Details - Arrangements - Totals
Totals: Total buy is total buy incl. tax, Total Sell is total sell ex tax
Commission: Commission incl Tax
Net Total: Total ex tax - commission
Tax on Margin: if custom margin for tax on margin is not 0
Tax: other taxes if any
Total Incl. tax: Net total sell + tax on margin + other tax
Margin percentage: calculated from sell price without deduction
Margin net percentage - calculated from sell price with deduction
Profit net percentage = calculated as (1 - total Buy Price / (total Sell Price NoTax - deduction)) * 100
Profit Net = total Sell Price NoTax - Deduction - tota lBuy Price (Margin Net)
Calculated depending on the below
if there is a final Supplier invoice added - taken from total invoiced by supplier * buy exchange rate)
if there is no final Supplier Invoice, and if calculate_margin_with_buy_ex_tax = false this is the total of Buy Total Price HC fields of arrangements
if there is no final Supplier Invoice, and if calculate_margin_with_buy_ex_tax = true this is the total of Buy Total Price Exclusive Tax HC fields of arrangements