Wht and vat

Question

hi,
correct me if i am wrong.
1) wht - customer will deduct the tax amount from the buying price when make payment. example price 100usd - tax 10usd = 90usd to vendor. although vendor invoice is 100 but vendor only receive 90usd. correct?
2) customer will pay the 10usd to tax authority?
3) normally can vendor claim back the 10 from tax authority?
4) vat - i buy raw mat for further manufacturing. buying price + added tax  100 + 10 = 110. right?
5) seller in point 4 will keep the tax and pay to authority later.
6) when sell goods, 110 + tax 11 = 121. buyer pay 121. i collect tax 11 on customer behalf.
7) can i say point 4 is input tax and point 6 output tax?
8) the tax amount i need to pay is 10 in point 4 + (difference of point 6 and point 4 = 1), so totaly need to pay is 10+1 = 11. right?
thanks

Answer 1

Dear Eliana, I have an example for you on how GST is being calculated.
Puchase Order Condition
Suppose you want to calculate the GST and DISCOUNT for a Net Value of 100.
Net value                                              100
GST 10%              of 100                        10
DISCOUNT 10%    of 100                        10
Final Net value                                       90
Moreover, in the case of Singapore there are what we say as GST return
In Singapore, businesses are required to submit a goods and services tax return (GST F5 form) to the tax authorities every quarter. This is a preprinted form given by government with predefined data, including the name and address of the company and the GST registration number. The following data needs to be filled out before submitting it:
Total accounts receivable
Total accounts payable
Total input taxes
Total output taxes
Goods and service tax to be paid or refunded
You can print out the tax return using SAPscript form F_RFUVSG_01.
Prerequisites before you can prepare a tax return, you must make the following Customizing settings. Note that the system makes these settings automatically when you create a company code using the template for Singapore [Ext.]:
1. Input and output tax codes, including:
P0 (0% tax on purchases)
P1 (3% tax on purchases)
PO (exemption from tax on purchases)
S0 (0% tax on sales)
S1 (3% tax on sales)
SO (exemption from tax on sales)
2. Define tax grouping version SG01 and assign it to form F_RFUVSG_01 in Customizing for Financial Accounting,
General Ledger Accounting -> Business Transactions ->Closing -> Reporting -> Sales/Purchases Tax Returns -> Define Tax on Sales/Purchases Groups.
3. Assign tax grouping version SG01 to company code SG01 in Customizing for Financial Accounting,
General Ledger Accounting -> Business Transactions -> Closing ->Reporting ->Sales/Purchases Tax Returns ->Assign Company Codes to Tax on Sales/Purchases.
4. Define the tax base amount grouping, which position the accounts receivable and accounts payable fields in F5 form in Customizing for Financial Accounting, General Ledger Accounting -> Business Transactions -> Closing ->Reporting -> Sales/Purchases Tax Returns->Group Tax Base Balances.
5. Define tax balances grouping, which position the following fields in the F5 form: total input taxes, total output taxes, GST to be claimed or refund from the government.
Hope this help, and dont for get to assign points