August 2014 Tax Recommended Patch 19155343:R12.ZX.B
Minor update to Swiss Registration Number Validation 18798030:R12.ZX.B
Fix to retain same functional currency amount in Oracle and Partner repositories 19221005:R12.ZX.B
eBTax content upload program to ignore Canadian payroll records from Vertex 18347471:R12.ZX.B
eBTax Setup upgrade
How to Perform a Sanity Check To Verify if The Upgrade Was All Fine (Doc ID 1596476.1)
In order to submit a VAT return or indeed any indirect fiscal tax reports a Tax (VAT) Registration Number (TRN) is needed to submit the reports. Because VAT reporting is based on a TRN number and a TRN can only belong to one legal entity, it cannot span across multiple legal entities or ledgers.
So why do we have the EMEA VAT Reporting functionality when the ability to run the Financial Tax register already exists?
• Report VAT based on the tax registration number associated with the legal establishment.
• Tax calendars can be used meaning that the VAT can be reported monthly, bi-monthly or quarterly even if the GL periods are of a 4-4-5 or 1-31st design.
• We can choose what taxes are reported based on set up linked to the tax itself. So an environmental tax that uses the same rules and conditions are a VAT tax can be excluded from the reporting.
• The intention of the selection process is to allow the data to be extracted for any point in time without it changing as more transactions are being added. The selection process can be run as many times as needed until the Tax Group are happy that the data they have is accurate before freezing these transactions to report them in the VAT returns.
• Once run in Final mode, the transactions are locked down and no more changes can be made for that tax reporting period’s data. This is intentional as it ensures 100% accuracy with the transactions being reported. It also means that if the selected data has been run in final mode then any transactions entered after this, even for the same month are captured in the following Tax period. This means that any and all corrections and new entries done in the existing or prior periods will still automatically be picked up in the open (chronologically first available as Not Closed) tax period.
• For some countries like Italy, Localisations applied allow for separate sequential document numbering control for tax transactions using the VAT registers.
• Marks each transaction reported to the authorities with information identifying the submission period and date and if all the changes to an invoice are made on that invoice then a full audit trail is maintained.
• Retain tax transaction history without affecting the performance of the current tax reporting processes.
Before the EMEA VAT selection Process or related reports can be run, there are several pre-requisites that need to be completed.
Original link here and additional information on VAT reports here Continue Reading
First you need to make sure you know the policy of adjusting a paid invoice as many companies do not want to allow this option and by default it should certainly be set to NO. However, we have found that when a user applied the wrong tax code to a transaction and a correction is needed, it is far easier, cleaner and more accurate to change that invoice even if it has been paid.
Changing the original transaction instead of applying a credit note and reentering the invoice has many more benefits. Firstly, the time taken is much less than having to create a credit memo and a new invoice, both of which then have to be paid. Continue Reading
Tax groups tend to be so detached from the rest of the business, usually only dealing with data from reports run after the month end close and then making journal adjustments. Journal adjustments that are to correct the numerous mistakes made by users entering the incorrect tax rates because they don’t’ know the difference between a Zero rated, exempt or reversed charge. Further to this, the inadequately build tax solutions often fail to even reveal half of the incorrect transactions. Continue Reading
GST or otherwise know as ‘Goods and Service Tax’ is almost identical to VAT and as far as configuring this in an Oracle R12 or Oracle Fusion instance, it may as well be. However don’t be fooled by Egypt’s GST as it actually stands for ‘General Sales Tax’ and this is set up differently in Oracle, primarily there is no tax to recover.
Hopefully the plans to move to a VAT for Egypt will continue to evolve but no confirmation on this as yet.
There is often a look of distress on someone’s face when you want to discuss triangulation tax for indirect taxation but it’s not difficult to grasp the basic concepts. There is a slight difference between triangulation in its ‘legal’ terms compared to setting up a triangulation tax rate in an Oracle ERP system with the rules to go with it. Technically, triangulation is considered as a zero rate tax but in Oracle we want to give it a unique name, something like EU sales triangulation in order for us to clearly see the tax on the invoice and easily identify it on the reports.
Triangulation is used to describe the process when more than two entities are involved in the supply of goods that cross international borders. The ‘ABC’ flow of transactions will involve three different parties where goods are shipped directly from party A to party C but party B is the selling organisation and never physically receives the goods or handles them during the shipping process.
It took me a while to get my head around the fact that even though NATO is exempt from VAT or rather VAT is not applicable, they don’t have a VAT registration number nor need to submit any VAT returns. Sure we have set up solutions for clients where they have exemption certificates both for the products and services that they buy and for items and services that they sell but they had a VAT registration number and had to submit a return. We also deal with suppliers and customers who don’t have tax registrations and set their tax profile as ‘NOT REGISTERED’ but this just means we still charge them standard VAT when we sell to them. So what do we do for NATO? Continue Reading
Patch 18108467 delivers the Tax Diagnostics tool, which is new functionality for the ‘E-Business Tax’ module. This tool can be used to analyze and fix various tax related data corruptions in Payables, Receivables and Purchase Order transactions. Its only really needed if you have done an upgrade but more information can be found on the oracle support page and sample extracts of the diagnostic reports can be found here.
The patch infomation can be found here https://support.oracle.com/epmos/faces/DocumentDisplay?id=1481235.1
Or Oracle Support Document 1336674.2 (Information Center: Oracle E-Business Tax Release 12 ) can be found at: https://support.oracle.com/epmos/faces/DocumentDisplay?id=1336674.2
