By issuing an outbound document, the LCT (Luxury Car Tax) value is automatically calculated by a rate previously registered in the Tax Register routine, which is 33% in most operations for products with GST above import and eligible for calculation, since there are vehicles exempt from LCT.

LCT is a tax applied to vehicle sales or import. A luxury car is subject to LCT if the company sells it during its business and to Australia, and when the company is registered or required to GST. By purchasing a vehicle eligible for LCT, the purchaser pays the vehicle amount with LCT.


Note:

In invoices, the tax value and the invoice total have decimal places calculated by the system (always considering two decimal places and rounding up from number 5 in the third decimal place).

Example:

1.433 = 1.43

1.435 = 1.44

1.437 = 1.44


The GST value calculated is displayed in the Tax Value field of Taxes folder.


Requirements

Before generating an invoice with LCT calculated, you must:

  1. Register a Product with GST tax and LCT type.
  2. Register a Customer.
  3. Register TIO (code 506).
  4. Enter a sales order by using the TIO.

By entering a sales order, the bill receivable is automatically generated.


See Also

LCT is also calculated in the following routines: