How is the Tax Code (TX) defined in the Metro Accounting System?
In Metro, a Tax Code is typically defined as part of the tax configuration in the accounting module. Metro Accounting System allows you to create and manage different types of taxes, including Sales tax, GST, and Purchase tax, using tax codes and tax groups.
If you're looking to create a Tax (TX) introduction in Metro, you might mean one of the following: Click Here
Creating a Tax in Metro – Setting up a new tax in Metro Accounting.
Adding a Tax Description or Introduction – Providing an explanation of the tax on invoices or documents.
A. Input Tax Categories in Metro Accounting System:
In Metro, Input Tax Categories for GST refer to the different GST rates applied to purchases, expenses, and imports. These categories determine how GST is recorded in supplier bills, purchase orders, and expense transactions, affecting the business's ability to claim input tax credits.
1. GST(ITC)@9.00% (Input Tax Credit - Standard Rated Purchases)
- Applied to most taxable purchases where GST is charged at 9%.
- Businesses can claim input tax credit (ITC) on these purchases.
2. GST(ZP)@0.00% (Zero-rated Purchases)
- Used for purchases of zero-rated supplies (e.g., imported/exported goods).
- GST is charged at 0%, but input tax may still be claimable.
3. GST(IE)@0.00% (Exempt Purchases)
- Applies to purchases of exempt supplies where no GST is charged.
- No input tax credit can be claimed on these purchases.
4. GST(IM9)@9.00% (Imports with GST Paid at 9%)
- Used for imported goods where GST is paid at 9%.
- Businesses can claim input tax credit for the GST incurred.
5. GST(IGDS)@9.00% (Imports under GST Deferment Scheme)
- Applied when businesses defer GST payments under the IGDS (Import GST Deferment Scheme).
- No upfront GST payment, but the amount is accounted for in the GST return.
6. GST(NC)@0.00% (Non-Claimable GST on Purchases)
- Used for purchases where GST is charged but cannot be claimed (e.g., blocked input tax on certain employee benefits or motor vehicles).
How It Works in Metro:
- These Input GST tax categories are configured under Accounting > Taxes in Metro.
- When processing supplier bills, expenses, or purchase orders, Metro automatically applies the appropriate input tax category.
- The system ensures that only eligible input tax is claimed and properly reported in the GST return.
B. Output Tax Categories in Metro Accounting System:
In Metro, Output Tax Categories for GST refer to the different GST tax rates and classifications that apply to sales transactions. These categories define how GST is applied to invoices, sales orders, and other revenue-related entries.
1. GST(SR)@9.00% (Standard-rated Supplies)
- Applied to most taxable goods and services at the standard 9% GST rate.
- Used in customer invoices where GST is charged.
2. GST(ZR)@0.00% (Zero-rated Supplies)
- Applied to goods and services that are exported or fall under the zero-rated category.
- GST is charged at 0%, but input tax can still be claimed.
3. GST(ES33)@0.00% (Exempt Supplies - Regulation 33)
- Used for exempt supplies under Regulation 33 where GST is not applicable.
- Commonly applies to financial services, residential property sales, and local lease of land.
4. GST(ESN33)@0.00% (Exempt Supplies - Non-Regulation 33)
- Similar to ES33 but does not fall under Regulation 33.
- No GST is applied, and input tax claims are generally restricted.
5. GST(DS)@9.00% (Deemed Supplies)
- Used for transactions where GST is deemed to be applicable (e.g., disposal of business assets without consideration).
- GST at 9% is recognized even if no actual sale takes place.
6. GST(OS)@0.00% (Out-of-Scope Supplies)
- Applies to transactions that do not fall within the GST system (e.g., salary payments, foreign sales where GST does not apply).\
7. GST(IGDS)@9.00% (Imports under IGDS - Import GST Deferment Scheme)
- Used for imported goods where GST is incurred at 9% but deferred under the IGDS scheme.
Where Tax Codes Are Used
- Invoices & Bills: Applied automatically based on products and fiscal positions.
- Tax Reports: Used for GST returns and other regulatory filings.
- Journals & Chart of Accounts: Helps track tax liabilities.
To get more details how is the tax code defined in metro accounting system, please do contact us at support@metrogroup.solutions