To invoice or issue an inbound document, the System must calculate, through the binding with pre-registered data in Variable Taxes, in Types of Inflow and Outflow and in TIO x Tax Binding, according to tax calculation rule.

The system also calculates VAT and Income Tax Withholding.


Added Value Tax (VAT)/(IVC)

Get to know calculation rules:

Calculation Base: Goods or Services Value - Discounts.

Rate: Rate entered in Product Register or in Variable Tax Register.

VAT/IVC: Calculation Base x Rate.

Good value/(1+(rate/100).


Note:

Freights, expenses and insurance in the invoice are entered as items/services in a detached document. In this new document, VAT or IVC is calculated according to calculation rules.

Tax value and invoice total will present decimal parts calculated by the System.


Procedures

1. Register the product in Product Register.

Note:

If you want to perform calculation through the product fixed rate, it is necessary that the VAT Perc. field, from Product Register, is filled out and present corresponding rate.

2. Register the customer in Customer Register.

3. Enter a sales order with registered product and customer, using standard TIO created by the System (check VAT and IVC code).

Note:

In order to calculate VAt or IVC as Exempt, it is necessary that the Calc. VAT field, in TIO Register, is filled out using the option 3.

In order to calculate VAt or IVC with 0 (zero) Rate, the field Calc. VAT, in TIO Register, must be filled with the option 4.

4. Enter the amount and unit value. Then, generate bill payable;

5. Release and invoice the order. VAT or IVC must be calculated and added to document total.


Tax per Special Consumption (ICE/ ICC)

Outbound documents are able for the calculation of Tax per Special Consumption (ICE), that is divided into:

Check the item presenting Specific Considerations for Ecuador in Invoicing.


Cancelling/Return

In the events of cancelling or return of total or partial value of services provision Debit or Credit Notes are generated, depending on the case. These debit or credit notes are used in the calculation of tax to be paid.

See the topic Debit or Credit Notes - VAT.


See Also