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How will Brexit impact Indirect Tax?

The short answer is that no one knows for sure how the decision from the 23rd June 2016 will affect businesses and with negotiations yet to start it will be some time before we have a clear idea. It is a challenging time, which is why eBiz Answers is hosting a series of webinars that will focus on what Brexit means for indirect taxes.

The webinars led by Neil Cubbage who has almost 7 years Fusion Tax experience with Oracle and Andrew Bohnet, the current Oracle Tax Management Special Interest Group chair, will look at what is likely to happen and how this will affect your Oracle configuration and processes around your Oracle eBusiness indirect tax solution. We will discuss how Brexit will impact all aspects of your Oracle eBTax or your Oracle Cloud (Fusion) solution, the reporting requirements such as the European Sales Listing Report, Intrastat reporting and the VAT return and the impact on other modules such as order management or projects.
 

From an indirect tax perspective, we will ask the question, does it matter if we are in Europe if we are not part of the European Union? ‘Leaving the EU’ is a confusing term because the UK is very much a European country, just like Norway and Switzerland who are also not part of the European Union, but are in Europe and function perfectly well without the complex requirements surrounding VAT and the EU.
 

We will focus on, what the alternatives are to being part of Europe around indirect tax, the Mini-One-Stop-Shop (MOSS) for example. Our aim is that the webinars will help you prepare your business for the challenges ahead to make sure you are ready for the changes when they come.
 

To register for these upcoming webinars please visit: www.ebizanswers.net/how-will-brexit-impact-indirect-tax

 

 

 

Adding Real Time Analytics to your Tax Department’s Indirect Tax Toolkit

eBiz Answers have recently added Real Time Tax Analytics to their indirect tax toolkit,  the application has designed specifically with the tax department in mind.   Real Time analytics is a user friendly web application which will inform the tax department of a transaction with a potential tax issue within seconds of it being entered.   This allows the tax department to identify and correct issues at source and empowering the tax department to be involved in the end to end process.

The ever increasing use of technology by Tax Authorities for tax compliance is directly impacting the inner workings of the tax department.     The VAT landscape is changing rapidly across the globe as Tax Authorities introduce technology to crackdown on tax avoidance and ensure corporate tax transparency.    From South American to Europe,  tax authorities are passing regulation to ensure companies provide accounting data in a standardised format, direct from their ERP applications on a monthly basis.  The tax authorities can then check the file, validate the data and ensure compliance.   Poland has introduced electronic filing with SAF-T files from the 1st July to join Portugal, Luxembourg, Austria and Lithuania who are already using the SAF-T filing format.

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Oracle Indirect Tax Toolset for Real Time Compliance

The indirect tax world is changing and with it are the requirements around tax compliance and reporting and the penalties that follow when you get things wrong.

Too many companies rely on reporting after the month end has been closed – often too late to make changes or any changes that can be made are done manually with minimal audit trail.

So how can you get more out of your tax engine to reach total compliance?

eBiz Answers are pleased to introduce their Oracle indirect tax auditor toolset that provides analysis of your data in real time. No longer do you need to wait until after the month end has closed to check the data for issues before the tax returns are submitted, our eBTax Real Time Analytics that is part of our Oracle indirect tax auditor toolset will identify issues within 5 seconds of a transaction being entered.

To arrange a demo of this ground breaking tool, contact us here

To Global or Not to Global, that is the question – Oracle Configuration Owner

There should only be one choice

We would never set up a tax solution using anything other than the Global Configuration Owner, so why are so many companies configuring their oracle ebusiness tax engine with it set to be party specific? By that I mean when setting tax rates and rules up then linking them directly to an operating unit.

So why do people set them up this way? Well the short answer is because they don’t know what they are doing. That statement maybe a little harsh so let me justify it.

What is the Tax Configuration Owner?

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Oracle ebusiness tax – when to use a tax jurisdiction

Linking a tax jurisdiction to a tax rate.

Whether its R12 eTax, eBTax or Oracle Cloud (Fusion) Tax, with Oracle eBusiness Suite, every Tax created under a Tax Regime needs a ‘Tax Jurisdiction’ if it wants to be enabled for transactions. Under the Oracle tax engine, a tax jurisdiction only applies to certain types of taxes.

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What Exchange Rate To Use For Foreign Currency Invoices From Domestic Suppliers

Do I have to use the exchange rate on the supplier invoice when entering a domestic invoice with a foreign currency.

Most ERP systems, good ones at least such as Oracle and SAP, will allow you to enter and store an exchange rate to use for your foreign currency invoices so that the foreign currency will then be automatically converted to your ledger currency when posted. There are also times when you may receive a foreign currency invoice, USD is the most common scenario, from a domestic supplier and VAT is charged because the sale is within the same country.

The problem

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Oracle Cloud Tax updated for Release 11

Fusion Tax Release 11 Updates

Below is a high level overview of the new functionality available for the Oracle Cloud tax engine. As you can see, there are quite a few changes.

Estimated Tax on Sales Order now possible.

Create a rule using tax determinant which includes transaction business category = Sales Transaction

Create a UD.

Enhanced Rapid Implementation Spreadsheets:

Data related to tax rules moved from tax config workbook to tax implementation workbook.

The following worksheets are new in the implementation workbook:

  • Tax Exemptions: Create tax exemption configuration for third parties and third-party sites.
  • Party Classifications: Associate party fiscal classifications with the parties.
  • Tax Reporting Codes: Create tax reporting codes and tax reporting types for downstream use in tax reports.
  • Tax Payer Identifiers: Define specific taxpayer identifiers for third parties and third-party sites for purposes of reporting.
  • Product Fiscal Classifications: Create product fiscal classifications for subsequent use in tax rules having a product inventory linked determining factor class.
  • Tax Rules: Define rules that look for a result for a specific tax determination process, such as determining place of supply or tax registration, in relation to a tax on a transaction.

Tax registrations have moved out of party tax profiles task. Now have their own task lists of:

  • Manage Tax Registrations: Use this task to create or edit details related to Tax Registrations, Withholding Tax Registrations, and Taxpayer Identifiers.
  • Manage Tax Exemptions: Use this task to create or edit details related to Tax Exemptions and Withholding Tax Exemptions.

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How to Transfer Invoice Tax Variances in Average Costing Organization

Oracle Payables will calculate Invoice Tax Variances when there is a non-recoverable tax that has been calculated at AP invoice entry that was not included on the Purchase Order.    In an average costing organization this tax variance should be transferred to the inventory valuation to ensure that the correct item cost is calculated.     Please see attached video for a demonstration of this functionality in Oracle R12.

How do you make indirect tax interesting? Revolutionise it!

As published in the Tax Technologist – specialist newsletter.

After I had done my part on a recent Oracle R12 presales presentation, I received the comment “I usually find tax really boring but somehow Andrew made that enjoyable to listen to”.  In fact, I always get a fantastic engagement when I talk about our indirect tax solutions in Oracle ERP systems (Oracle R12 and Fusion or Oracle Cloud as it is now known). The reason for this is simple, we are trying to make a difference and change the indirect tax process status quo.

We understand indirect tax and we are experts in Oracle, so we perfectly translate between the two. The majority of solutions we see usually fall well below what should be an acceptable solution. Maybe 90% either are or are considered at risk of being non-compliant as they rely almost entirely on a manual solution. Continue Reading

Oracle eBTax – The Best Return on Investment You Will Get

As with everything, ‘if you want a better solution, you need to first have a better understanding of the problem’ and this is so true when it comes to indirect tax. Oracle’s eBTax (e-Business Tax) and Fusion Tax (or Oracle Cloud as it is now known) are probably the most powerful and certainly the most versatile tax engines on the market, but their versatility is because they are Oracle modules and not a third party product.

As published in Issue 60 of the Oracle Scene from the UKOUG – Summer 2016.

One thing I learnt many years ago (whilst on my first Oracle project), when I was trying to work out how to correctly setup transaction types, was that the best thing about Oracle is how configurable it is. Conversely, the worst thing about Oracle is how configurable it is! It’s a double-edged sword and if you know how to control the power given to you then Oracle can be configured to achieve what you need. Continue Reading

Oracle – VAT applicability between a parent company and a permanent establishment in Italy

Really this can apply to any EU country and comes under the tax engine rules for Same VAT Group and can apply to any VAT or GST based tax regime.

In reference to the original article by the TMF group on VAT in Italy between a parent company and its child, I thought that i would try and explain this in terms of setting up the tax in Oracle R12 eBTax or Oracle Cloud Tax.

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eBiz Answers is taking on the big guys and winning!  Their route to 100% indirect tax compliance has won them ‘European Tax Innovator of The Year’

London, UK – June 2016.         

“Winning European Tax Innovator of the Year at the annual International Tax Review’s European Tax Awards is a huge achievement for eBiz Answers. It proves that we are making a measurable difference in terms of tax innovation” says CEO: Andrew Bohnet

Many businesses have dangerously underestimate the need for robust governance of their indirect tax, defaulting tax codes and even allowing staff to manually apply rates of their choice. Without question, this always leads to errors, incorrect reporting of VAT and an incrementally expensive burden upon the tax teams who end up processing unreliable data. Moreover, these inefficiencies sit badly with HMRC’s 2016 drive for governance and compliance; they are a clear handicap to achieving a Low Risk tax assessment; and, of course, SAO certification. When eBiz Answers carries out Indirect Tax reviews for their clients they find that most VAT issues which they uncover are invisible to the business, so tax returns are naïvely incorrect.  Andrew Bohnet explains “tax is not always recovered, of course HMRC becomes concerned and, in some circumstances, fines are issued. Our tried and tested automated Indirect Tax Solutions remove these risks and we do so at a fraction of the cost of engaging the well-known accountancy organisations, and without any need to procure an external tax engine, thereby providing further savings for our clients.” Continue Reading