Reporting

Senior Account Officers say VAT is causing them most concern

Why be worried about VAT compliance when the answer is out there?

A poll conducted by one of the big 4 consultancies and outlined in their ‘SAO Toolkit‘ said that from a recent poll (no date was given so assume still recent), “over three- quarters (77%) of Senior Accounting Officers say they undertook a review of their reporting systems and nearly half (46%) of firms say VAT is the area of tax which is causing them most concern, followed by PAYE (32%), corporation tax (11%) and excise”.

With this in mind, why then do so many companies have such poorly designed VAT systems and do not invest any money in reducing the risk of non compliance around VAT?

Get in touch with us to find out how we can lead the way to achieving 100% compliance.

Oracle R12 eBTax – EMEA VAT SELECTION PROCESS Finally faster!

This blog should affect every single entity using Oracle in the EU but as we usually find, the majority of tax configuration for Oracle R12 has been badly done by the various integration partners and the EU reporting functionality completely missed and nowhere to be seen! Oracle have provided an excellent solution with the European Tax Reporting Ledger but it is often completely missed. But for those of you who have set your solution up correctly, you will often be frustrated by how long the EMEA VAT: Selection Process takes to run and for some large companies we have done work for, the times can be more than 24 hours! Something completely unacceptable for busy tax departments.

But fear not, Oracle now have a fix.

Patch 17976021: MINIMUM TAX REPORTING DATE PARAMETER REQUIRED IN EMEA VAT SELECTION PROCESS TO AVOID PERFORMANCE ISSUE

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Oracle Fusion Tax: Tax Registration Options

Tax Registration Options

Every legal entity needs to have its reporting registration options set, just like with Oracle R12.

Option

Description

Impact

Tax Regime

Enter the tax regime for this registration. This is a mandatory value in order to set up your Tax Registration. We also advise that you set a separate Tax Regime for each tax registration number you may have.

If you are using duplicate registration numbers then you need to set the Tax too, however, leave this blank if you don’t care about duplicate tax registration numbers.

The tax regime and optionally and tax are used to determine the correct tax registration at transaction and reporting time.

Registration Type

If applicable, select a classification of the tax registration. Its not mandatory but always a good idea to put one in in case a seeded report requires this information now or in the future.

The predefined tax registration types are specified by the tax authority. The tax registration types are for reporting purposes only.

Registration Number

Enter the company tax registration number assigned by the tax authority – So go ask your tax department for this number. This is the tax number, not the company number!

If you set the tax regime option to use the legal registration number as the tax registration number, then select the registration number from the legal registration numbers in the list of values.

If you set the Allow duplicate tax registration numbers option for the tax, then multiple parties and party sites can use the same tax registration number for this tax.

Oracle Fusion Tax validates the number according to tax authority validation rules, if the validation exists for that country. This means that you need to get the format correct or it may not be accepted, so remove spaces or dashes if needed.

Registration Status

Enter the party’s tax registration status. Oracle Fusion Tax provides these predefined registration statuses:

  • Agent: The party acts as a withholding agent for the tax authority for the applicable tax.

  • Registered: The party is registered for the applicable tax.

  • Not registered: The party is not registered for the applicable tax.

  • XX 123456789 Same VAT Group (eBiz Answers Setup)

Use the tax registration status as a determining factor in tax rules. This values can be added to and used in tax rules

Source

Identify if this party is:

  • Explicit: The party is registered with the local tax authority and has a tax registration number. In this case, you know that the party is registered and the details including the tax registration number.

  • Implicit: The party is not formally registered with the tax authority, but the party is considered to meet one or more requirements for reporting taxes because of the level of business conducted. In this case, you determine that the party is registered but you do not know the tax registration number.

If the source is Explicit the tax registration number is required. If the source is Implicit the tax registration number is not required.

Rounding Rule

The rule that defines how the rounding should be performed on a value involved in a taxable transaction. For example, up to the next highest value, down to the next lowest value, or nearest. We also suggest that you set the rounding rules at the regime level and do not allow rounding override.

At transaction time, the values set at the tax registration level override the values set at the party tax profile level.

Set as self-assessment (reverse charge)

Set to automatically self-assess taxes on procure-to-pay transactions. A self-assessed tax is a tax calculated and remitted for a transaction, where tax was not levied by the supplier but is deemed as due and therefore, needs to be paid by the purchaser. If you set your solution up correctly then we suggest you set this to yes by default even if you don’t currently use Self-Assement!

You can set the self-assessment option at the tax profile level to default to the tax registrations that you create for this party. You can also set it at the tax registration level or on an individual tax line.

Oracle Fusion Tax applies self-assessment to Payable invoices received by the first party according to the tax registration setting. The specific tax registration record is derived either from the Determine Tax Registration rules or from the default tax registration.

Set Invoice Values as Tax Inclusive

Our recommendation is not to use this but if you select this because your party intends to send or receive invoices with invoice line amount inclusive of the tax amount you can use this option or for better control, use rules.

At transaction time, the values set at the tax registration level override the values set at the party tax profile level. In addition, this option at the tax registration level overrides the tax inclusive handling setting at the tax level, but not at the tax rate level.

Collecting Tax Authorityand Reporting Tax Authority

Enter the name of the tax authorities for:

  • Collecting Tax Authority: The tax authority responsible for managing the administration of tax remittances.

  • Reporting Tax Authority: The tax authority responsible for receiving and processing all company transaction tax reports.

Oracle R12 – EMEA VAT Reporting

Oracle R12 – EMEA Vat Reporting

Introduction:

In order to submit a VAT return or indeed any indirect fiscal tax reports a Tax (VAT) Registration Number (TRN) is needed to submit the reports. Because VAT reporting is based on a TRN number and a TRN can only belong to one legal entity, it cannot span across multiple legal entities or ledgers.

So why do we have the EMEA VAT Reporting functionality when the ability to run the Financial Tax register already exists?

• Report VAT based on the tax registration number associated with the legal establishment.
• Tax calendars can be used meaning that the VAT can be reported monthly, bi-monthly or quarterly even if the GL periods are of a 4-4-5 or 1-31st design.
• We can choose what taxes are reported based on set up linked to the tax itself. So an environmental tax that uses the same rules and conditions are a VAT tax can be excluded from the reporting.
• The intention of the selection process is to allow the data to be extracted for any point in time without it changing as more transactions are being added. The selection process can be run as many times as needed until the Tax Group are happy that the data they have is accurate before freezing these transactions to report them in the VAT returns.
• Once run in Final mode, the transactions are locked down and no more changes can be made for that tax reporting period’s data. This is intentional as it ensures 100% accuracy with the transactions being reported. It also means that if the selected data has been run in final mode then any transactions entered after this, even for the same month are captured in the following Tax period. This means that any and all corrections and new entries done in the existing or prior periods will still automatically be picked up in the open (chronologically first available as Not Closed) tax period.
• For some countries like Italy, Localisations applied allow for separate sequential document numbering control for tax transactions using the VAT registers.
• Marks each transaction reported to the authorities with information identifying the submission period and date and if all the changes to an invoice are made on that invoice then a full audit trail is maintained.
• Retain tax transaction history without affecting the performance of the current tax reporting processes.

Before the EMEA VAT selection Process or related reports can be run, there are several pre-requisites that need to be completed.

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Oracle R12 eTax EMEA VAT Reports

EMEA VAT Reports

This section lists all of the EMEA VAT reports.

Original link here and additional information on VAT reports here Continue Reading

Oracle ebtax – Belgium VAT Allocations Report

This blog will help identify the order that you need to run the various steps in order to get the Belgium VAT allocations reports working.

Hopefully if you have got to this stage, you have successfully set up your Belgium indirect tax solution and created the allocations needed for the Belgium VAT reports. If so, you need to run the following requests int he right order to get the Belgium VAT report to work.

First, run the EMEA VAT: Selection Process to populate the JG_ZZ_VAT_TRX_DETAILS table, which is where the majority of your European VAT and localised reports are run from.
If you have not run the Belgium Allocations reports yet then it is best to see if there are any errors, so run the following; Continue Reading