My company often give free goods for customers (Promotional goods) but yet company has to pay the VAT 15% tax for the government and on the promotion invoice we set the selling price to 0 and when you do that the VAT base also comas to 0 because there is no amount for the VAT to calculate on.SO is there a way for me to do little code manipulation from behind.Also i am not a developer but i can do little customization and i know the way around the dev. environment.
Don’t think you need any development to do this! Should be possible to do out of the box. Exactly how to do it, may depend on your localization. It’s also a few years since I had to do it last.
It depends a little on your discount setup, but the idea is to still include the item’s price on the invoice, and then give them 100% invoice discount. If this is a requirement in your country, then it should be part of your setup.
Thanks for you reply and you are right it is possible to it in out of the box,we are also doing it right now but in my country you pay VAT is calculated on the free goods you give to customers and at the end of the month we calculate the total VAT on the free goods given to customers manually and here is why i needed the customization because we want to avoid the manual vat calculation on the end of the month and the system to post VAT on the free goods given on each time i post the free good invoice.
What price is the VAT you pay based on? And how do you currently do this every month?
And who pays the VAT? You or the customer?
But the idea is to set it up, so that it calculates the vat even if the “line amount” field is empty, and I know that this functionality exists in NAV. I just don’t remember which country localization I have seen it in. It allows you to calculate the vat, like you need, but show it to the customer as no price.
Maybe some of our other members know what I’m talking about? Does your local version allow you to calculate vat (or sales tax) for promotional items?
Hi Eric thanks again
The company pays the VAT, customer is not billed for anything at all for the free goods and we are using 2015 W1 Ver. Currently at the end of the month person who reports VAT collects all the free good and calculate VAT based on item price from the item card.