26 Taxes 26.4 Tax calculation plug-ins 27 Pricing

26.5 Tax forms

The tax forms facility exists to help file sales tax forms. It’s primarily modeled after the 1099 US tax reporting forms functionality, which means that it’s cash based. The fact that it’s cash based means that invoices will be included in the tax report as soon as cash for the invoice is received. Accrual based reporting means that the tax is reported based on the invoice date instead of the payment date.

This system can only be used in some EU countries and by some companies at that: the country needs to allow cash based reporting and the company needs to have filed for cash based reporting as well.

Before using this functionality be sure to check with an accountant or the tax authorities if cash based reporting is appropriate.

26.5.1 Overview

Tax forms are meant to support tax reporting requirements in the countries where the company has tax or other government reporting obligations. This means that tax forms are country specific: each country for which reporting obligations exist needs to have its own form associated.

Using tax forms requires that:

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A template has to exists in order to format the tax report. Two United States based templates are provided by default: 1099-MISC and 1099-INT, provided they were loaded during the company setup. To view them navigate to System $\rightarrow$ Templates and select them in the “Template” drop down. For more information on templates see Section 18.4.12 on page 18.4.12
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A tax form has to be created for each type of tax reporting or jurisdiction. See Section 26.5.2 on page 26.5.2.
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Each customer and vendor that has government reporting requirements needs to be linked to a tax form. Section 33.4.2 on page 33.4.2 describes how to do this.

When associations have been set up between companies and tax forms, the “Tax form” check mark can be used in invoices to include (or exclude) invoice lines from the tax form. See Section 37.2.1 on page 37.2.1 for entry of invoices.

26.5.2 Creating tax forms

Tax forms can be created by navigating to Tax Forms $\rightarrow$ Add Tax Form.

Tax forms can be edited by navigating to Tax Forms $\rightarrow$ List Tax Forms.

Tax forms have the following fields:

Country: Country to which the tax form applies
Description: Name of the tax form to be displayed in drop down lists
Select by Default: Determines if the tax form check mark on invoices is checked or unchecked by default when the form is loaded
Accrual Basis: Use accrual based tax reporting for the report instead of cash based.

26.5.3 Using tax forms

To print the Tax Form navigate to Tax Forms $\rightarrow$ Reports where there are selections for which tax form, customer number, vendor number, date range etc.