Oracle eBTax, removing the need for a separate tax rate to allow for inclusive tax
I had a discussion with a senior Oracle developer at openworld where they saying about changing the way the tax logic worked for the inclusive tax so that rather than having to create a separate tax rate that is set as inclusive, you would just use a tick box on the invoice. His reasoning was that the tax rate should not need to be duplicated just to be able to change the ‘standing’ of the rate. You really cannot have it as a manual tick box in the tax details as this would slow down users especially when rules are often needed to drive whether the tax is inclusive or not. However, I think from the design of the tax solution, I think removing the need to set the tax rate as inclusive or not is an excellent step forward but I think you need to go further.
With the tax Rules, it could be good to add a few more sections here similar to the recovery rate, to maybe include the following
Tax reporting codes – this has already been done by putting the ability to select the reporting code at the rule result.
Legal Justification message – this has already been done by putting the ability to select the reporting code at the rule result.
Recovery Rate – this is already in the rules, however, the ability to make the amount of recovery known would be good, either in the tax details or on the invoice line.
Offset Tax – this is not needed in the rules as in my opinion, if you are choosing a tax with an offset then there is a one to one relationship between the VAT rate and the offset Rate.
Inclusive – this should be put into the rules along with ‘determine recovery rate’
Deferred – this should be put into the rules along with ‘determine recovery rate’
So to me, it looks like most of the rate factors are already in the rules, just whether it is inclusive or whether it is differed is not! How easy would it be include these two sections in the tax logic?