Manage the tax keys

Tax keys are a list of values, each of them linked to a specific tax rate. They are essential for the automatic tax functions, for example the automatic VAT tax posting. Every tax rate in the different accounts is assigned a tax key. The Order management module extracts data on the applicable tax rate from the tax keys.

Create a tax key

You can create a tax key that is not yet available in the list.

Prerequisites

A fiscal year has been selected, see Select the fiscal year.

Procedure

Accounting > Settings > Tab TAX KEYS

1. Enter an available tax key in the Key field.

   Check which tax keys are still available by navigating through the list. Make sure that the input fields are cleared before entering any data. If they are not, click the [CLEAR] button.

2. Enter a description for the tax key in the Description field, for example VAT 19%.

3. Enter a validity start and end date for the tax key in the Valid from and to fields.

4. Click the Tax type drop-down list and select the appropriate option. The following options are available:

   • ( )Not specified
   • (I)Input tax
   • (V)VAT
   • (IV)Input tax and VAT

5. Enter the applicable tax rate and factor in the Percent and Factor fields. Click the +/- drop-down list to select + or - if the posting is a net or a gross amount respectively.

   Companies selling products to foreign EU countries must be aware of the applicable VAT in the shipping country. It is recommended to check the validity of the tax rate in the corresponding country and update it accordingly in this field. If you are not sure about the tax-related consequences of your different foreign business transactions, please consult your tax advisor.

6. Enter the applicable account(s) in the Account (VAT/input tax/VAT not due) field.

7. Click the VAT ID needed drop-down list and select the appropriate option. The following options are available:

   • Yes
     Select this option in case of business-to-business transactions.
   • No
     Select this option in case of business-to-customer transactions.

8. Click the Country drop-down list and select the appropriate option. The following options are available:

   • (EU country)
     Select the EU member state where the specified tax key is applicable.

   • No EU tax key
     Select this option if the tax key does not apply to an EU member state.

9. Click the [SAVE & NEW] button.
   A small pop-up window confirms that the new tax key has been saved. The new tax key is displayed in the list.

   

   If you try to save a tax key number that is already assigned, an error message will be displayed. Select a different number to save the new tax key.

Edit a tax key

You can edit an available tax key, for example if a tax rate needs to be updated.

Prerequisites

A fiscal year has been selected, see Select the fiscal year.

Procedure

Accounting > Settings > Tab TAX KEYS

1. Select the tax key to be edited.
   The data for the selected tax key are displayed in the corresponding fields at the bottom.

   Potential loss of data
   Editing has the potential to cause loss of data due to overwrite. The overwrite cannot be undone and the overwritten data cannot be restored.
   Check all your entries before proceeding.

2. Edit the fields as appropriate.

   Tax keys are configured during the initial installation process and are not automatically updated. Therefore, it is recommended to check the validity of the tax rate in the corresponding country and update it accordingly in this field if necessary.

3. Click the [SAVE] button.
   A small pop-up window confirms that the edited tax key has been saved. The edited tax key is displayed in the list.

   

Delete a tax key

You can delete a tax key, for example if it is no longer applicable.

Note that the tax key will be deleted permanently. If you want to limit the applicability of a tax key, it is recommended to specify a validity period in the Valid from and to fields instead.

Prerequisites

A fiscal year has been selected, see Select the fiscal year.

Procedure

Accounting > Settings > Tab TAX KEYS

1. Select the tax key to be deleted.
   The data for the selected tax key are displayed in the corresponding fields at the bottom.

   Loss of data
   Deleting will permanently remove the selected data. The deletion cannot be undone and the deleted data cannot be restored.
   Problems may occur due to unresolved dependencies.
   Make sure you really want to delete the selected data.

2. Click the [DELETE] button.
   A small pop-up window confirms that the tax key has been deleted. The deleted tax key is no longer displayed in the list.