Archive for November, 2014

Oracle e-Business Suite R12 and Chinas Golden VAT system

Golden Tax is one of the Golden Projects initiated by the Chinese government to modernize the information technology of China. The Golden Tax project refers to an integrated nationwide value-added tax (VAT) monitoring system. For more information see our previous blog:

China’s VAT and the ‘Golden Tax system’

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Chinas VAT and the Golden Tax System

Chinas VAT and the ‘Golden Tax system’

The indirect tax regime in China, consists of VAT, Business tax (BT) and Consumption tax (CT)


As the most important tax in China, the VAT is a circulation tax levied on the added value at each phase of a product’s typical life cycle. It obtains the deduction phase by phase so that the final tax is equal to the sum of the taxes on each production phase. Continue Reading

EU 2015 VAT changes for American Companies

The 2015 EU VAT changes effect on American digital companies

By now most of you will be aware of the forth coming EU VAT changes for digital downloads, where VAT is now charged based on the location of the download instead of the location of supply.

For more information see our previous blog posts.
– EU 2015 VAT changes – Determining customer location
– VAT changes in the digital (download) world

However it’s not only European companies that will be effected but American ones also. This is because since 2003 rules have been in place regarding the supply of digital services by US companies to customers in the EU. These rules meant that US companies had the option to put all their VAT charges through a single administration, Continue Reading

Why do we need to use the supplier exchange rate to record the tax correctly

If a domestic supplier issues you an invoice in a non-domestic currency then you must use the same exchange rate that they have used. If we take an example of a Supplier issuing an invoice where the tax is $1000 but they used an exchange rate of 1.7 USD to the GBP then the GBP amount recorded in their ledger and subsequent GBP amount they put on their return as tax collected is £588.

If we entered the invoice using our own corporate rate which was set to 1.5 USD to the GBP then the GBP amount and the amount we recover is £666. That means that total tax received and total tax paid out leaves the tax authorities short of £88! So that is why when the invoice is entered, the initial amount recorded in your GBP ledger has to be the exact same amount of that charged by your supplier.

This will then be the GBP amount recorded against the transaction and the amount that is used in the tax return. You can always revalue your currency as soon as it has been posted to the GL to bring it back in line with your corporate rate.

Are you ready for the 2015 Malaysian GST?

Oracle R12 and Fusion Tax – Malaysian 2015 GST Implementation – Accounting (Tax) Software Compliance and Requirements

On 01 April 2015, the Royal Malaysian Customs Department will implement Goods and Services Tax (GST) replacing the current Consumption Tax. The introduction of GST is part of the Government’s tax reform programmed to enhance the efficiency and effectiveness of the existing taxation system.

As a consequence of this change, companies have to ensure their Accounting Software in use for business is in compliance with new requirements. Developing/Enhancing the accounting software will be necessary to produce additional electronic files, listings, reports, etc. This is something that eBiz Answers has been working on for some time and now has an off-the-shelf solution available for Oracle R12 and Oracle Fusion. Continue Reading

Don’t give VAT the silent treatment

Don’t give VAT the silent treatment

Many companies view VAT as being a complex tax to deal with and in some cases do not make the necessary precautions to ensure that VAT is calculated and paid properly or try to deliberately pay the incorrect amount of VAT. Many believe that they won’t get caught or feel they do not have the ‘time’ to deal with VAT and that it doesn’t really matter. This however is not true, HMRC announced earlier this year that they were implementing a VAT taskforce in order to deal with companies and individuals who are non-compliant and more and more are getting caught every day. Continue Reading