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Use the Tax deduction

In some cases we do not receive a valid certificate of exemption from our business partner / vendor, or we do not receive one at all. If we have a business process that requires a certificate of exemption, but we do not have one, then with Bau13b by Simova we have the possibility to apply the tax deduction directly via the factbox and generate an additional line.

The following steps need to be completed to use the Tax deduction applied action in Bau13b by Simova.

How to use the Tax deduction

  1. Navigate to your purchase document.
  2. Navigate to the factbox Bau13b from Simova.
  3. Check the status of the certificate of exemption.
  4. If the Status is Tax deduction required, the Tax deduction applied action will be displayed.
  5. Click Tax deduction applied.
  6. When the tax deduction is applied, an additional line is automatically created in the purchase document.

How is the tax deduction calculated?

If the business partner / vendor have no valid certificate of exemption, the tax deduction must be applied.

  • Calculation base: Grand total amount
  • 15 % of the calculation base

Example

Company A sends company B a purchase invoice for 100.000,00 € incl. VAT for building a storage hall. Company A does not have a valid certificate of exemption. Company B calculates the tax deduction:

Calculation Example

  • Calculation base:
    • 100.000,00 €
    • 15 % of the calculated base (100.000,00 € x 15 %) = 15.000,00 €
  • Result: Company A receives 85.000,00 € from Company B. Company A's tax office receives €15.000,00 from Company B.