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Topic:   Supplier tax rate

By: GuestPosted on: Nov 4 2020 at 12:02:13 AM
Hi is it possible to add a tax rate to a supplier?
we use suppliers across the globe and different suppliers tend to have different tax requirements. Having to manually calculate the tax on every purchase order across thousands of small parts is taking a huge amount of time.

By: GuestPosted on: Nov 4 2020 at 01:07:18 AM
Sales tax calculation is the responsibility of the seller/supplier. It doesn't belong on the buyer's purchase order.

By: GuestPosted on: Nov 4 2020 at 04:29:43 AM
Maybe elsewhere in the world, in Australia it needs to be on there.

In all cases bar very few charity or education related services where a good or service originating from within Australia is provided to another individual or entity also within Australia the buyer must pay 10% tax. When the seller is Australian, an Australian entity or an international entity applying this tax to their invoices the sellers responsibility is to be registered with the Australian tax office for the tax to be paid unless the sellers turn over is less than $75k per annum and if the buyer does not pay it at the time of purchase the bill will come from the government at end of financial year when tax returns are lodged. It is also the buyers responsibility to pay this tax on all imports on goods or services sourced internationally from somewhere outside Australia where the good or service has a value greater than $1000, and goods are not released from customs until this tax is paid in full. If the tax is not paid the goods are sent back to the supplier at the buyers expense without ever making it through customs. In cases where a manufacturer may have any entitlement to tax credits the tax must still be paid at the time of purchase and the credits are applied at the end of financial year on the business tax return lodgement.

You may find that in e-commerce business where products are sold in the consumer market internationally that the web services designed by the seller handle adding gst to the invoice (where I might add, an individual is personally buying something and does not create a purchase order), these businesses are required to be gst registered with the Australian tax office and must include proof that they took the gst with the shipment in the form of a commercial invoice and are required to pay that tax to the Australian tax office on a quarterly basis. If proof is not provided with the package customs will ask the buyer to provide proof or pay it again.

I'm sorry, I don't know where you are but you are simply incorrect. Your statement most certainly does not apply to everyone. It's not even the only tax that we have to pay here, certain things carry another tax on top of this for example cars or property and businesses always pay a further income tax on top as well.

By: SupportPosted on: Nov 4 2020 at 10:47:49 AM
The previous answer wasn't from us. (ie wasn't from MiniMRP support)

Of course a buyer must, in most cases, pay tax and the invoice sent from the supplier to the customer will include that tax.

We agree that the invoice sent by the supplier to the customer must include tax.

But are you saying that in Australia a "buyer" MUST, by law, include sales tax on the purchase order he sends to the supplier?

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