Automatic Calculation of Value Added Tax (VAT)

When bookings are created on the as Booking ledger when running the Retrocession Calculation order AND the Use VAT Calculation flag is set on the Insured Period of the OCC (only possible if the system parameter VAT Calculation based on EC Groups is selected), the system will also calculate VAT for all Entry Codes applicable to VAT.

The bookings will be automatically done; and will always be on Net Basis, i.e. based on the net amounts booked.

The VAT percentage to be used is normally found on the country of the Retrocessionaire (or found on the country of the Broker for bookings made with an Entry Code within the Entry Code Sub Category Brokerage), unless a VAT percentage is defined on the actual account on the OCC’s Administration Conditions.

When the Retrocession Account order runs the VAT details calculated on the as Booking ledger will be converted to the as Account ledger.

For more information in respect of the set-up; contact your system administrator.