Question

Tax Liability Date

  • 16 May 2023
  • 2 replies
  • 78 views
T
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Hi Team,

Can any one tell what is usage of Tax Liability Date in Tax Transactions screen. Whether it is used for  only identify the liability date or else any other purpose. If I change the Liability Date  for supplier invoice from Voucher Date to Invoice will that create any impact, because generally invoice date will be prior to the voucher date. For e.g. Voucher date 02/04/2023 but invoice date 31/03/2023 then our tax liability raise before we book the invoice in IFS.

Hope you are getting my question?

 

2 replies

Ieva Rituma
Rank
Userlevel 6
Badge +16

The tax liability date impacts the date for the tax transaction in a VAT/Tax return. How to set it up is defined by legal/requirements or customer processes depending on where in the world a customer is and when period close takes place.

 

Consider the following scenario. A company submits a VAT return quarterly (e.g. March, June, September, December). An invoice with an invoice date of 30th March is posted in the GL on the 1st of April. Which VAT return would you wish to include this tax transaction in - Q1 or Q2? That is what the setting will define. 

IRituma
P
Rank

Hi,

Tax Liability Date in Tax Transactions determines to which month the invoice will be taken to Tax Report. If you change this Date from April to March and next generate Tax Report for March - the invoice should be taken to this report instead of the report for April.

 

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