Archive for March, 2014

Slovenia to rate VAT?

Looks liek the Slovenian government is to raise standard rated VAT from 22% ro 24% on the 1st May 2014. Currently only anticipated as a temporary measure.

Oracle R12 eBTax China Golden Tax

Intercompany Transactions in R12 & a Global Implementation of Oracle eB Tax, incl EU & APJC VAT, US Sales/Use & China Golden Tax

Oracle R12 – Oracle Tax Simulator issues – no tax generated

If you are having problems getting your tax simulator to work, then make sure you have setup the ‘Associated Business Enities’ up under your Legal Entity Establishment

oracle etax R12

Oracle Fusion Tax For European VAT, Best Practice


The truth of the matter is that the differences between Oracle R12 Tax and that of Oracle Fusion Tax are minimal with the Fusion tax solution being pretty much completely based on the R12 solution – “if it isn’t broke, why fix it” right? Well some of those things that didn’t work quite so well have been iron out but on the whole, the architecture of Oracle Fusion tax is pretty much identical to that of R12. So what is this white a paper about? “Its one thing to be able to create a tax rate and a condition but it is something else completely to be able to create a tax solution”. So the following points should be considered as best practice for setting up Oracle Fusion Tax for European VAT.


In Europe, the VAT gap is estimated to be over $100billion and Governments globally are turning more and more frequently as a way of raising tax revenue that is immediately received rather than waiting until the end of the year. There is a much greater emphasis to ensure the VAT is reported accurately and as such any tax solution needs to be designed to ensure the maximum amount of detail is captured.

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Oracle Fusion Tax Simulator

Oracle Fusion Tax Simulator

The Fusion Tax Simulator does everything that the R12 simulator should have done and much much mroe. It really is a tool for Oracle to be proud of and a tool that revolutionizes how tax configuration and tax issues can be tested and dealt with. Verifying Tax Configuration before activating your tax!

“The Fusion Tax Simulator is a tool for simulating the tax determination process using your tax setup” So what this means is that  if you have an issue, you can ran the simulations without having to enter transactions. Even better, you can take any real transaction that has already been entered in your production instance and then copy this to the tax simulator! You can then work on the issue in the simulator without having to touch the actual transaction. Once you have resolved the issue, you can then apply this to the one in production!

“The Tax Simulator lets you preview the workings of your tax configuration before you perform tax calculations on transactions in a sub-ledger application.”before you activate the tax, you can run simulations to see if the tax outcomes are what you expect in Payable, receivables and other modules.” Whilst not advised, this means that you can do setups directly to production and use the tax simulator to test them before activating the new setup.
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Oracle Fusion Tax solution architecture

The Oracle Fusion Tax solution architecture uses a centralised data model consisting of five levels:

1.  Tax Configuration – Foundation:

This level represents the tax data that you set up for each tax regime and tax that your company is subject to. A tax authorityadministers the taxes of a tax regime. Each taxwithin atax regimeis comprised of a certain number ofelements, including tax statuses, tax jurisdictions, tax rates, and if applicable, tax recovery rates.

2.  Tax Determining Factors:

This level identifies the factors that participate in determining the tax on an individual transaction. Tax determining factors can be classified into the partiesinvolved in a transaction, the productstransacted, the placesinvolved in a transaction, and the processor kind of transaction that takes place. Tax determining factors are the building blocks for tax rules.

3.  Tax Configuration – Advanced:

This level consists of the defaults and tax rules used to determine and calculate tax on a transaction. Create tax rules by translating the tax regulations of a tax authority into determining factors and tax conditions. For each transaction line, the tax determination process uses the defaults or tax rules to determine the applicable tax regimes and taxes, place of supply, tax registration,tax rate and taxable basisto use in tax calculation, and any tax recoveryto the extent applicable.

4.  Services:

This level consists of determining tax amounts, appropriate tax recovery amounts, exporting and importing designated tax setups. For US tax solutons. the integration with third-party vendor productsfor transaction tax data upload, calculation, and reporting considerations where elected.

5.  Tax Management:

This level maintains all of the tax information pertaining to each transaction for use in tax reporting.

oracle r12 etax, setting PO services for eBTax

Create your line type and ensure the Purchase Basis is ‘Services’


assign to profile value – ‘POR : Amount Based Services Line Type’

POR : Amount Based Services Line Type