Archive for April, 2014

Oracle Fusion Tax – Latin Tax Engine, going going gone

Another feature of the Fusion tax solution is the incorporation of the Latin Tax Engine into Oracle Fusion Tax.

This functionality is not available in R12 eBTax and won’t be back ported due to the complexities around threshold handling, but with Fusion, this functionality now exists and so Fusion Tax is becoming the one stop shop that can handle everything tax related.

Oracle Fusion Tax – the death of GL tax

Oracle are continuing their efforts to improve and simplify the tax module.

In R12 eBTax, the ability to enter tax on the GL line was possible but was 100% manual with no ability for rules to kick in. It also posed a risk because if the user did not flow the correct path, they could accidentally enter a journal line against a tax account but the system wold not have recognised it as a tax entry and this would cause issues with tax reporting.

So, Oracle development have stopped the ability to use assign tax rates at the GL level!

Instead, they have added new functionality, a new process which works much the same way as an ADI excel spreadsheet. You enter your journal lines in the spread sheets but can add additional information that would influence the tax determination. You then have the ability to generate the tax that then creates the tax journal lines which can then be uploaded into our GL. The main difference here is that Oracle now stores all the tax information in the common tax repository just like any AP or AR transaction and the link to the journal line in therefore maintained.

This solution ensures a much better tax capture in GL that actually allows rules and therefore reduces the risk of tax setup.

Digital Media downloads – Luxembourg forced to raise VAT rate

The Luxembourg is still moving forward with a plan to raise its standard VAT rate from 15% to 17% on 1 Jan 2015.  This is to compensate for the changes in the VAT rules on B2C electronic services which Luxembourg currentl dominates due to their low VAT rates.

Slovenia VAT rise – hold your horses!

April 2014.

The planned VAT rise in Slovenia may now not go ahead on the 1st May 2014 although pressure from the EU may still force this change at the moment it looks like the change has been put on hold.