VAT for Items

How can I tell on the item card what VAT rate is associated with an item?

When I lool at thw item card, I can see the VAT Prod. posting group, but when I do a lookup on this it show me a list of VAT Posting Groups with what seems to the selected on highlighted. This how ever does not tell me what rate is being charged. If I then lookup the setup it again shows a list of VAT Business Posting groups.

Am I missing something here ? How do I know what VAT Rate is being charged for an item?


You enter he VAT % in the setup records. It’s the combination of product posting group and business posting group that determines which setup the system uses during order entry. So if you have a domestic customer (Bus. PG DOMESTIC), for a food type Item (Prod. PG FOOD), your VAT % may be 5 (just saying a random number), and you set this up in the VAT Posting Setup.

Again, it would help a lot to know which country you are in. Most contries have a “Base VAT Rate” for goods, and if you just need a close estimate, then you can just multiply the price byt he base vat and get a number.

Daniel, you surprise, me, all those years in the US, and you still remember VAT [;)]

VAT is the simplest method, though.

That’s proberbly why we don’t do the here in the US :wink:

As Daniel said.

The VAT Rate is defined, as the COMBINATION of VAT Bus. Posting Group and VAT Product Posting Group

In other words - The Combination of the PRODUCT and BUSINESS. In Denmark you useally have one TAX Prod. Posting Group - Taxable, and two Bus. Posting Groups - Taxable and Non-taxable.

You then attach the Prod. Posting Group Taxable to all items, Resources and G/L Accounts from wich you sell directly etc.

All Domestic customers and vendors have the VAT Bus. Posting Group to Taxable also - international customers are set to non-taxable. (EU might have a different code).

I sure do remember VAT, the 17.5% that I had to pay extra for everything I bought, and I think that even went up to 19%. You buy a 30000 EURO car, you have to pay almost 6000 EURO in VAT. I remember that pain very well[:)] Over here we have sales tax on some things, and it’s only 6%.

Thanks for the replies guys. I am in Ireland, but there can be a mixture of VAT rates (3 really) which can be applied to items depending on their classification. Most common rate here is 21% so DenSter’s 19% would be a bit of a dream.


Imagine a world where we have the simplicity of European VAT, and the l;ow rates of US Sales Tax. [<:o)]

By the way, ever thought of moving to Nevada? Sales tax is very low there, I think zero for many things.

Hmm -

Denmark has 25% VAT on EVEYTHING
180% TAX on Cars - yes, that IS 3 digits

Los Angeles County is 8.25% Sales Tax, Ventura County, where I currently live is 7.25%

Minnesota has 0% Sales Tax on Clothing…

anyways - Whiteboard, you just need 3 PRODuct VAT Groups, and assign them to the items…

What I need to do is a price including VAT field to the Item card. The item will always have a VAT Product Posting Group selected against it. So, I have the unit price and the VAT posting group, how do I evaluate the VAT inclusive price for this item?



you don’t

you also need information of the VAT Bus. Posting group - e.g. whether the product is sold in the Domestic country or exported to EU countries etc.

However if you assume or fix the VAT Bus. Posting Group then you can lookup the value of the VAT percentage in the VAT Posting Setup.

For the purpose sales in this applicaiton, all the items are sold to domestic customers only.

To be consistant, you may want to show each possibility on the Item card.


have a switch value depending on the Product + Business

The worst thing is to show potentially misleading values, I suggest creating a temporary table and displaying the results (make the item form larger). The max number of lines will be the max number of combinations.