VAT rate increase - time dependence taxes for VAT rate

[aramaisa]

Nigeria has VAT rate increase from the 01 February 2020. We need to implement time dependent taxes meaning tax code will not change.

Scenario:

Invoice created 01.01.2018 @ 5% VAT rate and credit note for this invoice 10 February 2020. So will the Credit note pull the 10% rate even though the rate has increased. Is there a flexibility to choose the tax date for credit note and or invoices. E.g. In SA - VAT determination is based on Services rendered/ time of supply – if services rendered before tax rate change and the invoice is created after the tax rate change the vat on the invoice must be at the rate applicable when services were rendered.

[Sai_Kasturi · Accepted solution]

Hi Angelina,

You can manually enter the service rendered date on sales order header to re-determine the taxes. By default, the creation date of the document is considered as service rendered date. However, you can manually overwrite it to re-determine taxes for a different date.

Thanks

Sai

[Nancy]

Please have a look at the note 872449 -Tax determination in Sales and Distribution. It explains the date used when determining tax in SD.

If this note doesn't help, please send some screenshots of current issue and your expected result.