Archive for October, 2014

EU 2015 VAT Changes – Customer Location

2015 EU VAT changes – Determining customer location

By now most of you will be aware of the EU VAT changes to digital downloads, where the VAT is now charged for the country it is downloaded in rather than from where it is supplied, however many businesses are questioning how they determine their customers place of supply. Many people now a days use many different installs or plugins etc. to change their perceived location, for example there are many chrome plug ins that allow you to set your location to different countries in order to access certain video streaming services or websites otherwise blocked or different in the country that they are in, but will this affect the VAT rate that they pay for digital downloads? Could you for example be in Hungary and set your location to Luxembourg in order to only pay 17% (new 2015 rate) instead of 27%? And if so how to companies prevent this from happening and inadvertently committing VAT fraud.

Which means that the key issue for suppliers will be to correctly identify where their customers belong, so they can apply the correct rate of VAT. In order to try to provide both clarity and certainty on this point the regulations contain a number of presumptions which will have legal effect in all 28 EU Member States. Continue Reading

eBiz win Gold at UKOUG Partner of the Year Awards

We are pleased to announce that eBiz Answers have won 3 Gold awards at the seventh annual UKOUG Partner of the Year Awards. We would like to thank everyone who voted for us and congratulate all other winners at this years ceremony.

eBiz Answers were awarded Gold in the following categories:
– Innovative (Product/Service) Partner of the Year
– Small Business/General Business Partner of the Year
– Independent Partner of the Year

The awards provide recognition to UKOUG Partners for the contribution that Continue Reading

Oracle R12 eTax: APP-SQLAP-97733 tax distribution error

If you get the following error when trying to look at distributions or validate your AP invoice, then this is caused by a currency issue.

ZX_GENERIC_TEXT

invoice validation issue

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Oracle R12.2 ‘JBO-25009: Cannot create an object of type: oracle.jbo.domain.Date with value:’ issue

Has the issue ‘JBO-25009: Cannot create an object of type: oracle.jbo.domain.Date with value:01-Jan-2000’ when assigning the tax regime to the Party Tax Profile for an Operating Unit.

I was able to assign one Tax Regime, but when i tried to assign the next it crashed out with the error.

 

tax Continue Reading

Luxembourg VAT increase coming soon

Luxembourg to raise VAT 2%

From the 1st of January 2015 Luxembourg is to hike all rates other than its super reduced rate of VAT by 2%, increasing the standard rate of 15% to a rate of 17% and reduced VAT rates will rise from 12% and 6% to 14% and 8%, respectively. The rate of the super reduced rate is to be unchanged at 3 percent but its scope will change.

The Prime Minister confirmed that the measure would help raise €350 million which would be vital to compensate for the scheduled change in EU 2015 B2C VAT digital services place of supply rules. Many companies base their digital download business headquarters in Luxembourg due to its low VAT rate, however when the VAT rule changes in 2015, where companies pay the VAT of the country in which the product is downloaded, Luxembourg is set to lose out approximately €700million per annum.

If your company is registered for VAT in Luxembourg you should be aware that any change in the VAT rates will affect businesses both as suppliers and as customers. Businesses registered for VAT in Luxembourg should therefore keep well-informed with the planned VAT developments and adjust accordingly.

For more information please see:

Luxemborg confirms VAT rise for 2015 – from vatlive.com
Luxemborg issue guidance ahead of 2015 VAT rate changes.

 

Review of ‘E-Business Suite R12: Malaysia Goods and Services Tax (GST), February, 2014 (Doc ID 1624947.1)’

Malaysian GST (MY GST) in Oracle R12 and Oracle Fusion

This article is to provide a little more information on  ‘E-Business Suite R12: Malaysia Goods and Services Tax (GST), February, 2014 (Doc ID 1624947.1)’

We have managed to use standard functionality to pull all the requirements together. Oracle have looked at this and have said they are not going to do anything special to get ready for the launch date and I have to agree with them! The required data needed for the GST submissions can be collected using standard functionality. The Financial Tax Register could be used to report the right data although crudely so we do suggest that you look at getting expert help so that first the data is captured in the most optimal way, using a fully automated solution (NO DEFAULTING TAX CODES!) and then a bespoke report will be able to neatly provide all the reporting requirements linked to the right tax codes.

You can click here for the Oracle link which we suggest you monitor because at the time of writing, it was last updated in February so a change is likely soon. Continue Reading

23 Key Questions on Oracle EBS R12.2.4 Answered but tax aint one!

IT Convergence have put together an interesting posting on the 12.2.4 version of Oracle ERP but this blog is to confirm that there are no real changes to the tax engine. One important factor however is that the ability to use is NULL and is not NULL when creating conditions. Interestingly however, I had to prove to Oracle the need for this functionality in an ER about 4 years ago and it only took 2 months to get this ER through. So whilst this tax functionality is being made standard, it has actually been available for almost 5 years!

For the Full IT Convergence article, click here

 

Oracle R12 Brazilian Tax Explained

This is the first of what will be many blog postings on tax set up in Brazil for Oracle ERP R12 implementations.

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HMRC clamp down on VAT fraud

HMRC clamp down on VAT fraud

TAX experts are warning of a clampdown by HMRC on penalising businesses which under-declare VAT. At the start of the year HMRC announced they were implementing a VAT fraud taskforce. The current penalty rules for under-declared VAT, in place since 2008, are primarily based on the behaviour leading to the error. HMRC has recruited extra investigators to look into tax evasion and aims to prosecute 1,165 people between now and the end of 2015, up from a target of just 565 over the previous two years. Continue Reading

Italian Vat Rumours and Russian Sales Tax

Italy considers 2015 VAT increase as finances worsen

The latest Italian budget revealed that the government is considering a new VAT rise. Italy raised its VAT rate to 22% in October 2013. Italy had already raised it 1% in 2011 from 20% at the height of the Euro currency crisis.

Italy’s public debt is the second highest in the euro zone as a percentage of GDP, and it has risen steadily to record highs above 130 percent of national output. The government deficit is continuing to drift away from the 3% of GDP target – a key rule for continuing membership of the Euro currency. Continue Reading

Using an eBiz Answers Oracle R12 of Fusion Tax Solution could save you $600,000 a year

eBiz Answers prides itself on improving efficiency and trying to eliminate the risk of non-compliance.

Recent studies have shown that we can save on average 1 to 5 days a month on indirect tax procedures from invoice entry, tax processing and tax reporting.

For a project of 40 countries globally with an average employee cost of $250 a day, the following are the estimated savings per month!

0.5 days saving per month for 40 countries
@$250 per person per day = $60,000 a year
1 days savings per month for 40 countries
@$250 per person per day = $120,000 a year
5 days savings per month for 40 countries
@$250 per person per day = $600,000 a year!
Even for a 5 country roll out with 2.5 days savings per month the yearly savings would be almost $40,000

The real saving however is the fact that you will no longer get any fines because you will have such a solid tax solution that the tax group can monitor and track every transaction going through, identifying the tax issues immediately as they appear.