Non-Deductible VAT Code and Freight in Purchase Invoice

[FedericoS]

Good morning everyone,

When recording a purchase invoice using a non-deductible tax code and adding freight in the foot of the document, in the resulting accounting entry the non-deductible part is not added to the cost of the freight but to the cost of the invoice line item (either using item codes or the service type document).

Thanks in advance for your help,

Federico

[Felipe_Lima]

Hi @FedericoS ,

Follow the below and check the behavior at your end.

In some countries you could even create an Item called "freight" and use the G/L determination to produce a similar accounting output. You would have to check whether this is compliant to the local laws and the customer's processes, of course.

The bottom line is that you should always consider localization-specifics in regards to VAT and Freight treatment. The database I'm using is UK based, so it may be different from the Italian one I suppose you are using.

KR,
Felipe