Countries that are members of the European Union or that follow the tax regulations of the European Union and charge a VAT on goods and services. Typically, there are multiple VAT rates in each country. Invoices may contain goods or services that are charged with different VAT rates. In these cases, the invoice contains information about which amount is charged with what VAT rate.

AP Agility extracts the taxes into Net Amount / Tax Rate / Tax Amount fields if VAT-based tax processing is enabled. Net Amount 0 contains the invoice amount that is tax-free. Net Amount 1-4 / Tax Rate 1-4 / Tax Amount 1-4 contain amount, rate, and tax amount values for up to four different tax rates.

For European invoices, you must do the following to support this type of tax.

• Enable VAT-based tax processing.

• Enable Net Amount 0 and Net Amount 1-4 / Tax Rate 1-4 / Tax Amount 1-4 as needed in Settings > Invoice Processing > Capture Profiles > Field Settings.

  Ensure that you enable enough fields to cover all tax rates for your country. For example, if a country has two different rates, activate at least Net Amount 1 and 2, Tax Rate 1 and 2, and Tax Amount 1 and 2.

When cross amount checks are performed for VAT countries:

• The sum of all Tax Amount fields is uses as the value for the total tax amount

• The sum of the activated Net Amount fields is used as the value for the total Net Amount. In this case, Sub Total is ignored.