setup required for VAT exempted sales

balajiravindran

what are the prequisites setup for VAT exempted sales, for VAT exempted sales the VAT amount should not get charged to customer but it should appear in Tax Entry for VAT settlement. please suggest me the solution

ssingla

If VAT is exempted then why it should appear in tax entry or VAT settlement?

balajiravindran

when i make purchase i get VAT input. At the time of sales i select VAT structure and VAT will get calculated. Since my customer is in SEZ, i cannot charge VAT for him. So i select VAT exempted option in customer card. VAT is not calculated,But when i post Tax entry should be there, At the time of VAT settlement this VAT output has to be taken into account.Is the requirement is clear. please if anyone knows let me know the solution.

chengalasettyvsrao

I replicated your scenerio in the Cronus NAV 2009 SP1.

Place the check mark in the Vat Exempted in the Customer Card . Then create the sales order / Sales Invoice and post . System will not create any Tax Entry or Detail Tax Enty table .

balajiravindran

Thanks for your reply. I got the same result as you mentioned. My query is, if it does not appear in Tax entry or detailed Tax entry , how come it will account in VAT settlement, whether it will get account during my VAT settlement without Tax entry?. My client says it has to be account in VAT settlement.Thanks.

chengalasettyvsrao

balajiravindran wrote:

My client says it has to be account in VAT settlement.Thanks.

It should not post any values to Tax Entry and Detail Tax Entry .

I can suggest you ask the client if they post Vat exempted sales transaction , then what are all the accounts will effect with values . Then you will come to know whether it has to post or not to Tax related tables.

If possible Can you attach the Accounts with values.