6.3.10 Digital Services Tax (DST) / Advertising Tax
Version | 2.149 and up |
|---|
Challenge
Selling across different borders can be tricky when trying to ensure you’ve charged the correct DST based on the seller in your transaction as well as the valid DST rates for your invoice date.
Solution
Before working on a daily basis in ADvendio with the DST some setup steps need to be followed. For further information please take a look here: 7.6.18 Configure the DST / Advertising tax calculation
1. Media Campaign
We have synchronized and automated the processes by which DST settings are applied to your Media Campaigns. Once Campaign Items have been added to your Media Campaign, DST relevant information is added to or changed on your Media Campaign, the applicable DST setting is automatically applied/updated. Your proposals will then show the exact tax data which will later be invoiced.
When creating Media Campaigns which you expect DST to be applied to, ensure that you:
Fill the legal entity if applicable (otherwise the sellers country is your salesforce Org country)
Add campaign items.
Which fields are populated on Media Campaign level depend on the DST settings which are applied:
Field name | Field description |
|---|---|
Seller Country | Is the country of your org or the Legal Entity defined in the Media Campaign. |
Create Items as DST Exempt | This will create all new items with DST exempt meaning that they will be excluded from DST application. |
Invoiced Amount Gross (DST) | The amount of this Media Campaign after DST was applied. |
Nontaxable Amount (DST) | The sum of all non taxable items for DST. |
Taxable Amount (DST) | The sum of all taxable items for DST. |
DST Amount | The sum of all DST. |
DST Rate % | The applied DST rate for this Media Campaign. |
DST Exempt
Create items as DST Exempt: If you mark this checkbox ALL newly created Campaign Items for this Media Campaign are also set to be DST Exempt. This will not influence already existing Items. So make sure to manually edit those if needed.
2. Campaign Item
The tax rate is defined by the DST relevance of the AdSpec and the custom DST settings which are dependant on the seller of the Media Campaign. The DST amount gets calculated by multiplying the N2 (default or the defined taxable type) with the rate.
3. Invoice
The Invoice contains all DST data from all Invoice Items. The DST information summarizes all existing Invoice Items.
Field name | Field description |
|---|---|
Legal Entity Country | Is the country of your org or the Legal Entity defined in the Media Campaign. |
DST Exempt | If the Media Campaign was marked as “Create Items as DST Exempt“ Exempt the invoice will also be marked so. |
DST Amount | The sum of all DST. |
DST Rate | The applied DST rate for this Media Campaign. |
Nontaxable Amount (DST) | The sum of all non taxable items for DST. |
Taxable Amount (DST) | The sum of all taxable items for DST. |
DST Invoiced Amount DST | The amount of this Invoice after DST was applied. |
Note
DST Exempt (Invoice) is overriding the DST Exempt (Invoice Item).
4. Invoice Item
The Invoice Items contain information from Campaign Items, custom DST settings and relevant Seller information (Media Campaign).
The information is transferred from campaign item via Mapping BA to the invoice item:
DST Exempt is mapped from Campaign Item to Invoice Item.
DST Amount is calculated by the Invoiced Amount (net net net; N3) multiplied with DST Rate if Third Party Commission is displayed. Otherwise, the Invoiced Amount (net net; N2) is multiplied with DST Rate.
5. Displaying DST on your Quotes and Invoices
In order to display your DST on your quotes and invoices, you need to ensure that your preferences are configured correctly by setting the field “Show Gross Campaign Cost” to true.
Setup
Please find the setup steps needed for the DST application to work on this Wiki page: 7.6.18 Configure the DST / Advertising tax calculation