Add MSP Taxable Entity

After you configure a legal entity for the MSP organization, you can assign the name as a taxable entity. This entity name is assigned at the country and state/province level, and is taxable entity for billing parties when VAT taxes are calculated by the VMS.

You can add more than one legal entity name to a state/province. You can also follow these steps to edit any existing taxable entity names previously configured for the client country.

Before you begin this task, ensure that you have configured a legal entity at the MSP organization level.

  1. Navigate to the Configuration view in the MSP view.
  2. Click the MSP tab in the top menu.
  3. Click Tax Rates.
  4. From the country table, select a country.
  5. On the country information page, from the State/Province List, select the state/province (blue link text) to configure the name for.
    Note: If no states or provinces are defined in the system for a country, this value appears as 'State_Province'.
  6. On the state/province information page, click the MSP Taxable Entity section card to expand it.
    If no entities are added to the state/province, this section is empty. To add a new entity, click .
  7. In the expanded section, click .
  8. From the Legal Entity drop down, select the entity name to add. This list is configured at the MSP organization level. See Add Legal Entity.
  9. Select the Registered for Taxes check box if the entity is tax registered.
    Note: In some countries, when the organization that is creating the bill for the work being taxed is not registered for taxes in that country, then there is no VAT charged for that particular bill.

    Magnit VMS allows this to be configured in the Conditions for No Tax for a country with the Bill From Taxable Entity is Not Registered check box.

    In these countries, if the MSP organization is not registered for taxes in that country then the tax calculated in Magnit VMS for the MSP Up Fee, the MSP Down Fee and sometimes (depending on the supplier's billing agreement) even the Bill Client fee will be zero.

  10. Enter the entity tax identification numbers in the Tax ID and Second Tax ID fields.
  11. If a tax entity is tax exempt in the state/province, select the Tax Exempt check box.
  12. If the Tax Exempt check box is selected, enter the tax exemption certification number in the Exemption Cert field.
  13. Select the Active check box to make the entity active in the system.
  14. Select the Country Default check box to make the entity the default taxable entity for the country.
    You can only make one entity the default.
  15. Click .