How does Oracle EBS Financials support UK Reverse Charge VAT on goods such as Computer Chips and mobile phones in UK?
Below is the Oracle solution for accomodating the requirement to charge a 0% reverse charge VAT amount for the sale of certain microchips sold within the UK. The issue that I currently see is that there is no where to be able to factor in the ability to only charge this tax if a certain threshold of say £5000 is met. I will be investigating this with Oracle and post any updates here.
On June 1, 2007, the new Reverse Charge VAT rule became effective in the United Kingdom. The Reverse Charge VAT involves inverting the tax liable party from the ‘Seller of Goods’ to the ‘Buyer of Goods’ under certain conditions for domestic transactions within the EU countries.
Currently, this applies only to the sale and purchase of mobile phones and computer chips.
Oracle Financials now supports this VAT regulation by identifying reverse charge VAT transactions and ensuring that appropriate tax rules are applied. A Reversed Charge Sales report is available to list effected invoices, which supports the reporting requirements for supplies of specified goods or services. A standard message is printed on all reverse charge sales invoices
This feature was released in EBS Release 12.1.1 and it has also been back-ported to 12.0 via Oracle Financials Release Update Pack 5 and back ported to Release 11.5.10 (Patch 7395695).
See the following links for more information:-