Tax rule substitution tax in different tax group

[dave (David Harper)]

Is there a reason why the Tax Rule Line is designed so that the Substitution Tax must be in the same Tax Group as the Original Tax?

In the UK there is a cash accounting scheme that can be used with VAT returns. I think the Tax Cash Module is intended for use with these types of schemes. However, when using this scheme even though most transactions are based on payments instead of invoices, there are some that are still based on invoices (such as Imports and EU acquisitions). I think that if I put these taxes in separate tax groups, I can configure the system to report these correctly?

If so, I’m planning on creating a tax rule for Non-EU Suppliers. This would take the standard tax and change it to an Import of Goods tax. This is where the problem arises, as these two taxes need to be in different groups to support the cash accounting scheme.

[ced (Cédric Krier)]

@dave

However, when using this scheme even though most transactions are based on payments instead of invoices, there are some that are still based on invoices (such as Imports and EU acquisitions). I think that if I put these taxes in separate tax groups, I can configure the system to report these correctly?

This is really strange rules. Most countries do not allow to have mixing tax reporting, it is based on cash or not.

@dave

Is there a reason why the Tax Rule Line is designed so that the Substitution Tax must be in the same Tax Group as the Original Tax ?

It is for safety. Normally you should not need such substitution.

[pokoli (Sergi Almacellas Abellana)]

@dave

If so, I’m planning on creating a tax rule for Non-EU Suppliers . This would take the standard tax and change it to an Import of Goods tax. This is where the problem arises, as these two taxes need to be in different groups to support the cash accounting scheme.

For me the taxes should be on the same group as a group represents a kind of taxes (sales, purhcases, service sales, etc). This makes it easy to create a tax rule that substitutes each kind of taxes for the diferent parties or suppliers.

Having said that I think you should fix the problem by adding a check on Taxes to allow to exclude them from tax basis. Then you should override this method to return false for Imports and EU acquisitions.

This will allow you to compute the values from normal tax groups on cash basis and exclude the required one.

[dave (David Harper)]

@ced

This is really strange rules. Most countries do not allow to have mixing tax reporting, it is based on cash or not.

Thanks, I will double check to make sure I didn’t misread, or misinterpret the rules.

@pokoli

For me the taxes should be on the same group as a group represents a kind of taxes (sales, purhcases, service sales, etc).

That is what I thought, and this is how I had them, before reading the information about the cash accounting scheme.

@pokoli

Having said that I think you should fix the problem by adding a check on Taxes to allow to exclude them from tax basis. Then you should override this method to return false for Imports and EU acquisitions.

Thanks, I will look at doing it this way.