Value Added Tax (VAT)

Introduction

appero quote offers you different ways to display the VAT of your quote, as a percentage value at the individual Quote Line Item or as displayed amounts in the VAT or Gross Total items. But first you need to determine the correct tax rate for each Quote Line Item. For this, appero quote offers various options depending on the complexity of your configuration.

Determination of the correct tax rate

Global uniform tax rate

The easiest way to define the tax rate for your quotes is through the Setting > Functionality ("Standard VAT", name of the setup text "standardvat"). This parameter allows you to define the default tax rate for your company. This tax rate will always apply if no tax rate is defined for the opportunity or account and no active tax rules apply to the quote.

Tax rate per Account or Opportunity

In addition to the standard tax rate, e.g. 19% in Germany, you may need additional tax rates for international business, e.g. a VAT rate of 20% for a partner in Austria. You have two ways to define this - via the Account or via the Opportunity:

The prioritization is as follows:
If there is an own tax rate at the opportunity, the tax rate at the account will be ignored. If there is a tax rate on the account, the global tax rate in the settings will be ignored.

Tax rate via rulebook

The previous options only allow a single tax rate per quote. However, there are cases where this is not sufficient, e.g. if you want to offer products at the normal and reduced tax rate at the same time.

Here, the system of three objects - Tax Key, Tax Rate, and Tax Rule - offers the greatest possible flexibility:

The Tax Key and Tax Rate merge at the Tax Rule:

Field	API-Name	Function
	Name	Tax Rule Name
	sf42_quotefx__SF42_ProductGroup__c	Lookup(Product Group) The rule refers to this product group. Here, only the primary product group of a product is considered, the secondary one is ignored.
	sf42_quotefx__SF42_ProductGroup2__c	Lookup(Product Group) The Secondary Product Group refers to the secondary product group of a product. Primary and secondary product group can be used individually or in combination on one rule.
	sf42_quotefx__SF42_Product__c	Lookup(Product) As an alternative to the product group, a tax rule can also refer to a single product
	sf42_quotefx__SF42_Tax__c	Returns the tax value in % from the associated tax rate
	sf42_quotefx__SF42_TaxRate__c	Master-Detail(Tax Rate) Relation to the object Tax Rate
	sf42_quotefx__SF42_TaxKey__c	Master-Detail(Tax key) Relation to the Tax Key object

Any number of different Tax Rules can be stored for a Tax Key. Products and product groups can be assigned to different rules and thus to different Tax Rates. Everything flows together at the account, via whose tax key stored there the associated rules are queried.

Behavior in the Quote Editor in case of ambiguity:

• Incompletely configured tax rules are output in the quote editor with tax value 0%.

• In case of duplicate rules, the first one found is used randomly.

• In case of competing rules on product and on product group, the rule for the product is used.

• In case of competing rules on product groups, the most precise rule is used, i.e. two matching product groups trumps one matching product group, primary trumps secondary product group.

• If both product and product group are stored in a rule, the product group is ignored.

• Global rules without product (group) assignment are ignored.

The value added tax in the quote editor

In appero quote Lightning Editor, you basically have three different ways to display the tax:

Quote Item	Description	Function	Example
	Column “Tax”	The VAT. column displays the tax rate in % on the Quote Line Item.
	Quote Item “VAT”	The VAT quote item outputs the VAT included in the quote as an amount, subdivided by the tax rates involved.
	Quote Item “Group Total Gross” and “Total Gross”	The Total Gross items allow you to display the total gross amount of your quote, i.e. the net amount plus the VAT amount. The calculated amount always refers to the entire quote, regardless of the positioning in the quote. By filtering by product totals, you can further narrow down the quote.

Editability of the tax rate in the quote

By default, the tax rate is not editable by the user. Using the new changeTax parameter, you can make the VAT column in the quote editable. The adjusted values are then applied simultaneously to the calculation of the gross totals and the total tax amount. A possible use case is international use in a country whose tax rates cannot be mapped according to uniform rules.

The value added tax on the opportunity product

Please note that if you create your products initially on the opportunity and then copy them to the quote editor, the VAT and related sum items cannot be calculated correctly. (In case of setup text CopyOppItemsNull = false, because here no recalculation of the products is triggered).

These two values are necessary as the lowest unit prices to correctly calculate the tax amount. VAT and sum items are then calculated correctly again in the quote.