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The Agile ERP includes an integrated Tax Calculator that complies both with EU and US regulations.

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The default rate can be set up in Service Panel > Settings > General Settings

Processing Orders with other EU countries

In some casesIf both Service Partner and the foreign customer have a VAT identification number, VAT must be paid in the country where the so-called place of performance is located. In the case of transactions across national borders, the place of performance is shifted to the location of the recipient of the goods.

Therefore, an order will not contain any VAT (0% VAT) if all of the following conditions apply:

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Consider this example of an order:

To calculate the VAT, there are two legally valid methods of calculating the tax. The vertical and the horizontal method.

Vertical Method to calculating the tax (used by 3YOURMIND)

1. Calculate the tax for each item individually.

2. For the total prices, we create the sum for each column individually.

Benefit:

• Each item contains prices with 2 decimal places for net and gross.

• For each column the total is the sum of all line prices

Drawback:

• The tax on the total seems to be off: (5,00 80 €* 0,19 19% = 1,10 € ≠ 1,11 €). This effect increases for high quantities and lower prices. Note, that although the tax seems to be not correct on the total, this method of calculating tax is legal and commonly used.

Horizontal Method to calculating the tax

1. Calculate the tax for each item individually.

2. Create the sum for the Gross price only

3. Use the VAT rate to derive a Total net Price.

Benefit:

• The tax calculation is correct in the last line.

Drawback:

• For the Net prices and tax column, the sum of the line prices are not equal to the total price (when using only 2 decimal digits). (e.g. 3,40 € + 2,40 € = 5,80 € ≠ 5,81 €)

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