Taxes

---

Tax Categories

Tax categories are defined according to their type. To access them, go to the menu:

Performance Analysis -> Accounting Rules -> Tax Category

Separate categories are defined for VAT, Income Tax (ISLR), and withholdings, such as:

• ISLR Income Tax
• VAT General Rate
• VAT Reduced Rate
• VAT General + Additional Rate
• VAT Exempt
• ISLR Withholding
• VAT Withholding
• Municipal Withholding

The withholdingformat field has been added to the c_taxcategory table to classify the print formats for withholding slips. This allows distinguishing between VAT, ISLR, and MUNICIPAL withholding formats. A reference has also been added to select them via a combo box in the application dictionary.

---

Accounting Charges

Additional charges in a transaction are defined in the menu:

Performance Analysis -> Accounting Rules -> Charge

These can include bank service charges, supplier charges, handling charges, among others. It is important to select the type of tax that applies to each of the defined charges. For more information, see section 4.4.

---

Account Combinations

To define account combinations, go to:

Performance Analysis -> Accounting Rules -> Account Combination

You must define the following combinations, in case they do not exist:

• VAT Fiscal Credit: Account 114472 (for purchases and client withholdings)
• VAT Fiscal Debit: Account 214477 (for sales and supplier withholdings)
• VAT Paid Not Recovered: Account 531632
• ISLR Withholdings to Suppliers: Account 214479
• ISLR Withholdings from Clients: Account 114473
• ISLR Expenses: Account 531630

---

Tax Rates

Tax rates are managed in the menu:

Performance Analysis -> Accounting Rules -> Tax Rate

It is necessary to import the files c_tax.csv and c_tax_withholding.csv.

Name	Description
VAT Additional Rate 22 %	VAT Additional Rate 22 %
VAT General Rate 12 %	VAT General Rate 12 %
VAT Reduced Rate 8 %	VAT Reduced Rate 8 %
VAT Exempt	VAT Exempt 0%

It is crucial that VAT taxes are not treated as sales taxes. Therefore, the Sales Tax checkbox must be unchecked. For internal transactions, the default Country must be Venezuela (c_country_id=339). For imports, the country of origin must be considered.

The Tax Indicator field is fundamental for the breakdown of sales and purchase ledgers in the summaries. The tax indicators for VAT rates are:

• IVAEXE (Exempt VAT)
• IVARED (Reduced Rate VAT)
• IVAGEN (General Rate VAT)
• IVAEXT (Extended Rate VAT)

The accounting accounts associated with VAT and ISLR taxes and withholdings are:

• 114472: VAT fiscal credit (purchases)
• 114477: VAT Withheld from Clients
• 114479: ISLR Withheld from Clients
• 214477: VAT fiscal debit (sales)
• 214472: VAT Withheld from Suppliers
• 214479: Withheld Taxes to be Remitted (ISLR Withheld from Suppliers)

Additionally, the expense accounts associated with taxes are:

• 531630: Income tax
• 531631: Municipal taxes
• 531632: Sales taxes paid to Suppliers not recovered

Modify the accounts in the Accounting tab as follows:

Rate	Tax on Sale	Tax on Purchase	Expenses
VAT Additional Rate 22 %	214477	114472	531632
VAT General Rate 12 %	214477	114472	531632
VAT Reduced Rate 8 %	214477	114472	531632
VAT Exempt	214477	114472	531632

---

Define Tax Categories for Products

If you already have products registered, you must select the corresponding VAT type for each one. This procedure is done in the menu:

Material Management -> Material Management Rules -> Product

For more details on this process, see the Material Management chapter.