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Max Ciereszko

Max Ciereszko

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Description

The proforma remittance functionality has been enhanced so that, for VAT registered contractors, VAT is now calculated on the contractor’s pay items at the time when a proforma remittance document is generated. That is, at the point when a timesheet belonging to the contractor is released for pay processing from the Interpreter.

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Info

A payee is considered to be a VAT registered contractor if the payee:

  • has a Tax Type of Contractor or CIS

  • has a Payee Type of Contractor, 3rd Tier Agency, Umbrella or CIS

  • is flagged as VAT registered.

The VAT registration status of a payee is captured under a payee validity period on the Payee record. The system refers to the payee validity period that applies on the date when the timesheet is released from the Interpreter for pay (i.e. when the interpreted timesheet status type is set to Reviewed -Pay Only or Reviewed - Pay and Bill) to determine if the payee is VAT registered.

Tax Point Determination

For the purposes of calculating VAT/GST when generating the proforma remittance, the system uses the date the proforma remittance is generated to determine if the contractor is VAT/GST registered, by referencing the validity period on the Payee record that applies on that date, and to determine the tax rate that applies.

Benefits

This enhancement allows the proforma remittance functionality to be used to generate documents that meet the definition of a valid tax invoice when issued to a VAT/GST registered contractor. In turn, that allows the pay company to claim the VAT/GST that is paid forward to the contractor at the time when the proforma remittance is generated without the need to wait until the contractor is paid.

For other enhancements in this release that facilitate using the proforma remittance functionality to generate tax invoices, see Creation Date Field for Payslip and Proforma Remittance Document Formats.

Configuration

No configuration required.

Info

To display the VAT value amounts on the proforma remittance document, the existing Item Tax Amount field and Total VAT fields must be used in the proforma remittance document format. For more information, see Configuring Document Formats.