Exploring VAT Tax Codes for Invoices

Value-added Tax, or VAT, is a tax added to a product whenever a value is added in the product’s production process. Many countries require that VAT be accounted for on goods and services for tax calculation purposes.

SAP Concur Invoice provides tax codes for clients in countries that use country packs to track VAT (Canada, UK, Japan, and Australia).

Tax codes can be associated with a relevant set of vendors. The information will then feed into the client’s financial system to make it easier for them to handle and track VAT. Users will see a matching tax code list for each tax amount field when they open an invoice.

Concur Invoice has implemented VAT to be used both at the header and line-item level of the invoice.

VAT fields at the header level store the total invoice VAT information, and VAT at the line-item level allows a client to modify the VAT when VAT rates vary at this level.

Clients occasionally need to manually enter VAT at the line-item level for invoices that have items with different VAT rates. This requires that VAT fields are available both at the header and line-item level, which allows the client to expose the line-item VAT columns when they change the mode. In addition, the client can take advantage of auto distribution from header level efficiencies for most of the time, yet benefit from the flexibility to manually override data at the line-item level when needed.

• Value Added Tax is a tax applied to goods and services during the production process, and many countries require businesses to track and report it.
• Invoice provides country-specific tax codes, which clients can associate with vendors to support accurate VAT tracking and reporting.
• Tax codes are available only for invoices and do not apply to purchase requests.
• Concur Invoice allows users to manage VAT at both the header and line-item levels, supporting automatic VAT distribution and manual overrides when different rates apply.
• Clients can manually adjust VAT at the line-item level for invoices with varied VAT rates, ensuring flexibility and accuracy.