Tax Israel Train The Trainer

Key User Training
FIN – Transaction Taxes-Israel

About this Material
• This presentation covers the in-scope Playtika system processes for this subject
• It is intended for training the Key Users and Playtika trainers
• This training material is not a replacement for the Product Documentation which is available on the Oracle
Product Website and includes description of the standard fields
• This presentation is not intended for End Users
Agenda
• Payables Tax Scenarios
• Default tax calculation
• Tax Classification
• Tax accounting -Recoverable Tax
• Self Invoices
• Edit the Taxes
• Withholding Tax
• AR Tax Scenarios
• Default tax calculation
• Tax Classification
• Withholding Tax
• View VAT Setup

• Tax Regime, Taxes, Tax Rates, Tax Status and Jurisdiction
• Tax Rules
• VAT Reports
• Select Transactions for Tax Reporting
• Tax Allocation Process
• Israel VAT Report
• Israel VAT File
• Finalize Transactions for Tax Reporting
• Tax Box Return Preparation Report
3
Agenda
• Withholding Tax Setup

• Withholding tax regime, tax, tax rate
• Withholding tax rules
• Update Supplier exemption certificates

• Create SHAAM Supplier File for Israel
• Process Received SHAAM Certificates File for Israel
• Withholding Reports
• Withholding Tax Report for Israel
• Withholding Tax File to Tax Authority for Israel
• Withholding Tax Annual Certificate to Suppliers for Israel
• Custom control reports

• Report control exchange rate for tax reporting purposes
• Report to control transactions for VAT reporting
4
Payables Tax Scenarios
 Normal Scenario – Default tax calculation

 Select applicable tax rate from Tax Classifications
 Tax accounting –Recoverable Tax account
 Self Invoices
 Edit taxes
Payables Tax Scenarios – Default Tax calculation
Navigation – Payables Home Page Option > Invoices > Create Invoice
1. Enter Supplier and invoice

details. Then click on Invoice
Actions  Calculate Tax or
directly Validate the invoice.
2. View Taxes
Payables Tax Scenarios – Select Tax classification
code
1. Enter invoice
information
2. Select
applicable tax
classification
3. Click on
calculate tax
or validate the
invoice to get
the tax
calculated
Payables Tax Scenarios - Accounting
1. After the invoice is Validated and approved, click on Invoice Actions  Post to Ledger to transfer to the books
Payables Tax Scenarios – View Accounting
Payables Tax Scenarios – Self Invoices
* The invoice should be created to a self invoice supplier. The supplier

tax classification should be IL-VAT-C (example: Playtika LTD Selfinvoice)
* The invoice should be created as a regular invoice, the tax code used
will be 17% VAT-C
Navigation – Receivables Home Page Option > Billing > Create Transaction
* The invoice should be created to a self invoice customer. The customer

tax classification should be IL-VAT-M (example: Playtika LTD Selfinvoice)
* The invoice should be created as a regular invoice, the tax code used
will be 17% VAT-M
Payables Tax Scenarios – Invoice Tax Calculation-
Edit taxes
1. Click Edit Taxes to modify taxes

Payables Tax Scenarios – Invoice Tax Edit
1. Change the Rate name
Payables Tax Scenarios – Withholding Tax
For Israel Withholding tax is calculated when the invoice is paid.
Receivables Tax Scenarios
 Normal Scenario – Default tax calculation

 Select applicable tax rate from Tax Classifications
 Tax accounting
 Edit taxes
AR Tax Scenarios – Default Tax
Navigation – Receivables Home Page Option > Billing> Create Transaction
Enter AR Invoice Details and save the invoice

1. View or Edit Taxes
AR Tax Scenarios – View Accounting for a completed
invoice
1. Click on Actions  Post to Ledger
AR Tax Scenarios – View Accounting
1. Click on View Accounting

AR Tax Scenarios – Tax Classification Scenario
1. Click on Tax classification at line level and select the tax classification that want to use for the line.
AR Tax Scenarios – Withholding Tax
Withholding tax that customers apply to Israeli companies, will be handled in Oracle as adjustments.
1 – After applying to the corresponding invoices the receipt, there will remain one invoice with an open
balance equal to the withholding amount made by the customer
2 – In order to close that balance, the user with the proper permissions should go to Actions  Manage
Adjustments
2 – In order to close that balance, the user with the proper permissions should go to Actions  Manage
Adjustments (pay attention to the adjustment date and accounting date, if necessary change it) and click
on Submit
3 – After creating the adjustment, need to post the adjustment to Ledger to see the journal. The
adjustment will close the balance of the supplier against the withholding account that was associated to
the receivables activity Customer Withholding
View Setup of Israeli VAT
• Tax Regime
• Taxes
• Tax Rates
• Tax Status and Jurisdiction
• Tax Rules
View Tax Regime
Navigation: Setup and Maintenance, Functional Area = Finance
Search > Manage Tax Regimes
Set up tax regimes in each country and geographical region where you do business and where a separate
tax applies.
1. Regime Details
View Tax Regime
Navigation - Setup and Maintenance, Functional Area = Finance
Search > Manage Tax Regime
Set up tax regimes in each country and geographical region where you do business and where a separate
tax applies.
2 . Regime Subscription – Add BU’s and LE’s to which Tax is applicable

View Taxes
Search > Manage Taxes
When setting up your taxes, specify tax rule default values that apply to the majority of your
transactions.
1 INPUT TAX
2 OUTPUT TAX
View Taxes-INPUT TAX
1. Specify Default Jurisdiction, Status, Recovery rate and tax rates

View Taxes-OUTPUT TAX
1. Specify Default Jurisdiction, Status, Recovery rate and tax rates

View Tax Recovery Rates
Search > Manage Tax Rates and tax recovery rates
• IL_VAT_REC_1/4: 25% recoverable

• IL_VAT_REC_2/3: 66.667% recoverable
• IL_VAT_REC_STD: 100% recoverable
• IL_VAT_REC_ZERO: 0% recoverable
• IL_VAT_O_REC_STD: 100% recoverable for output
View Tax Rates
Search > Manage Tax Rates and Tax Recovery Rates
1. Search and view existing tax rates

View Tax Rates
Input VAT:
• IL-VAT-0: 0%
• IL-VAT-A: 17% for Assets 100% recoverable
• IL-VAT-C: 17% for self invoices 100% recoverable
• IL-VAT-EXP: 17% for expenses 0% recoverable
• IL-VAT-K: 17% for Petty Cash 100% recoverable
• IL-VAT-T: 17% for Israeli suppliers 100% recoverable
• IL-VAT-T ¼: 17% for Israeli supplier 25% recoverable
• IL-VAT-T 2/3: 17% for Israeli suppliers 66.667% recoverable
• IL-VAT-TMP: 17% for proforma invoices
• IL-VAT-TMP-0: 0% for proforma invoices
View Tax Rates
Output VAT:
• IL-VAT-I: 16% for Palestinian customer

• IL-VAT-L: 17% for unknown customers
• IL-VAT-M: 17% for self invoices
• IL-VAT-O-0: 0% for sales to Eilat customers
• IL-VAT-S: 17% for Israeli customers
• IL-VAT-Y: 0% for Non Israeli customers
• IL-VAT-T1: 17% input tax to be used for intercompany transactions
View Tax Rates
Search > Manage Tax Rates
1. Tax Rate header information
2 . Tax Rates Percentage
3. Main Details
View Tax Rates
Search > Manage Tax Rates
1. View Tax Accounts for each Business Unit

View Tax Rates – View Tax Classification Assignment
View Tax Rates – Tax reporting code (Assignment of the
letter for VAT Reporting to tax authorities)
View Tax Jurisdiction
Search > Manage Tax Jurisdiction
View Tax Status
Search > Manage Tax Statuses
Enabling of Taxes – Only once Enable Tax for Transaction
is checked, taxes will apply on Transactions
Tax Rules
Rule Type Rule details

This rule is created when at taxes level if tax is by default “Applicable” and we
Applicability Rule want to make in “Not Applicable” for a given scenario or vice versa
This rule is used for export and import scenarios. Every tax is specific for a
country and works on place of supply. By default if my place of supply is equal
Place of Supply to Bill from then suppliers or customers which are outside Israel, tax will not get
calculated. So in order to make Tax applicable for export and import scenarios
place of supply tax rule is created
This rule is used to override the default tax rate value specified at the taxes
Rates level.
This rule is used for deriving reverse charge for specific scenarios where reverse
Registration charge needs to be checked
Tax Recovery This rule is used to override the default recovery tax rate specified at the taxes
Rule level.
View Tax Rules – Appilcability Rules for INPUT TAX
Search > Manage Tax Rules
View Tax Rules – Appilcability Rules for INPUT TAX
1 - IL_VAT_EXEMPT_NOT_APPLICABLE: Rule that whenever the tax classification is

VAT-EXEMPT the result is not applicable
2 - IL_APP_RULE: Whenever the bill from country is equal to Israel, then the result is
Applicable
View Tax Rules – Appilcability Rules for OUTPUT TAX
View Tax Rules – Appilcability Rules for OUTPUT TAX
1 - IL_TRX_TYPE_NOT_APPLICABLE: Rule that for certain receivables transactions

type such as Platform Fee CM the result is Not Applicable
2 - IL_VAT_O_APPLICABLE: Whenever the bill to is equal or not equal to Israel, the

result is Applicable
View Tax Rules – Tax Rate Rules for INPUT TAX
View Tax Rules – Tax Rate Rules for INPUT TAX
1. IL_INPUT_TRR: This rule is based on tax classification, it lists for each tax classification what is
the tax code that should be used on the transaction
2. IL_PTA01_ACCOUNT_RULE_TRR: This rule is based on accounting. It has two rules inside, one
with the list of accounts that when used in the invoice the tax resulting should be VAT-A (assets)
and another one which lists the expense accounts, and when used in the invoice, the resulting tax
should be VAT-EXP (expenses).
The last rule is repeated per company that’s why we see it 4 times.
View Tax Rules – Tax Rate Rules for OUTPUT TAX
View Tax Rules – Tax Rate Rules for OUTPUT TAX
1. IL_O_GEO_TRR: This rule is based on geography of the customer and it states that when
the bill to is equal to Israel then the resulting VAT will be VAT-S and when the bill to is not
equal to Israel the resulting VAT will be VAT-Y.
2. IL_PLY_O_TRR: This rule is based on the tax classification and it states what would be the
resulting tax code based on each tax classification
Israel VAT Reports
 Select Transactions for Tax Reporting

 Tax Allocation Process
 Israel VAT Report
 Israel VAT File
VAT Reports
Navigation – Tools  Scheduled Processes  Schedule New Process
VAT Reports
1 – Select Transactions for Tax Reporting: This is a standard process that will select the
transactions that are in conditions to be reported to tax authorities (accounted in the selected
ledger in the selected period)
Report parameters:
* Reporting level: Ledger (we need to report at ledger level, because Playtika’s
primary ledger is in USD and we must report in ILS to tax authorities)
* Ledger: Select the ledger corresponding to the company in ILS (Example:
Playtika LTD ILS, Homerun LTD ILS, Innplay Labs LTD ILS, JustPlay LOL Ltd ILS)
* Tax Registration Number: Select the tax registration number corresponding to
the selected ledger.
* Tax Calendar Period: Select the corresponding period you want to report.
* Source: Output Tax and Input Tax
VAT Reports
Navigation – Tools  Scheduled Processes  Schedule New Process: Select Transactions for Tax
Reporting
VAT Reports
2 – Tax allocation process: This is a standard process that will prepare the data selected by the
previous process in the corresponding boxes for tax reporting purposes.
Report parameters:
* Reporting Identifier: LEDGER: Company secondary ledger’s name (Be aware
that the first options are LE:Company Name, and this will run the process at legal entity level. Search
on the list the option that start with Ledger)
* Tax Calendar Period: Select the corresponding period you want to report.
* Reallocate: When the Reallocate parameter is ‘Yes’, the process allocates tax
box numbers to all transactions for a given reporting entity, tax period, and source and overrides the
previous runs. When the Reallocate parameter is ‘No’, the process allocates tax boxes to unallocated
transactions from previous runs.
VAT Reports
Navigation – Tools  Scheduled Processes  Schedule New Process: Tax allocation process
VAT Reports
3 – Israel VAT Report: This is the Israeli localization solution for VAT report. This report is an excel
file which contains all the details of the transactions that will be reported to the tax authorities in
the period.
Report parameters:
* Reporting Identifier: Select the corresponding reporting identifier. Pay
attention it should start as LEDGER:XXX
* Tax Calendar Period: Select the corresponding period
* Report Periodicity: Periodic Allocation
* Summarization level: Both
VAT Reports
Navigation – Tools  Scheduled Processes  Schedule New Process: Israel VAT Report
VAT Reports
Navigation – Tools  Scheduled Processes  Schedule New Process: Israel VAT Report
VAT Reports
Navigation – Tools  Scheduled Processes  Schedule New Process: Israel VAT File
The file runs with the same parameters than the report, and provides the .txt file
that should be uploaded into tax authorities site for VAT reporting.
VAT Reports
Navigation – Tools  Scheduled Processes  Schedule New Process: Finalize Transactions for Tax
Reporting
This process closes the tax period and marks the transactions selected for tax
reporting as reported. Based on the tax point date used (accounting date), the
system won’t pick up any new transaction that will get accounted during the
accounting period that was already reported. This means, if you finalize SEP-23
period, you shouldn’t introduce any new transaction with SEP-23 accounting
period. (Hence it is very important to finalize the tax reporting after closing the
books and not open them again to introduce any transaction)
VAT Reports
Reporting
VAT Reports
Reporting
Parameters
* Reporting Identifier: Select the corresponding

reporting identifier. Pay attention it should start as LEDGER:XXX
* Source: Input Tax and Output Tax
* Tax Calendar Period: Period that needs to be
finalized
VAT Reports
Navigation – Tools  Scheduled Processes  Schedule New Process: Tax Box Return Preparation
Report
Lists taxable and tax amounts grouped by tax declaration box numbers
for periodic or annual allocations. We must run this report in order to be
able to run the tax reports of the next period.
VAT Reports
Navigation – Tools  Scheduled Processes  Schedule New Process: Tax Box Return Preparation
Report
Parameters:
* Reporting Identifier: Select the corresponding reporting
identifier. Pay attention it should start as LEDGER:XXX
* Tax calendar year: Leave this parameter blank
* Tax Calendar Period: Period that needs to be finalized
* Report Periodicity: Periodic Allocation
* Summarization level: Both
Withholding Tax Setup
 Withholding tax regime, tax, tax rate

 Withholding tax rules
Withholding Tax Setup – Withholding Tax Regime
1 – Regime details:
View Tax Regime
2 . Regime Subscription – Add BU’s and LE’s to which Tax is applicable

View Taxes
Search > Manage Taxes
1 IL_WHT
View Taxes – IL_WHT
1. Specify Default Jurisdiction, Status, and tax rates

View Tax Rates
1. Search and view existing tax rates

IL_WHT:
* IL_WHT_0: Default Withholding for non Israeli suppliers
* IL_WHT_30: Default Withholding for Israeli suppliers

View Tax Rules – Applicability Rules for IL_WHT
There are two rules:
* IL_EXM_NA: If tax classification is equal to IL_WHT_EXEMPT the result is Not Applicable
* IL_WHT_APPLICABLE: If bill from is equal to Israel the result is Applicable, if bill from is not
equal to Israel the result is Applicable
View Tax Rules – Place of Supply Rules for IL_WHT
1 - IL_WHT_PLACE_OF_SUPPLY: If bill from country is not equal to Israel then the result is Bill
to.
View Tax Rules – Tax Rate Rules for IL_WHT
1 – IL_WHT_TRR: If bill from country is equal to Israel then the tax rate is IL_WHT_30.
If bill from country is not equal to Israel then the tax rate is IL_WHT_0
Update Supplier Exemption Certificates
 Create SHAAM Supplier File for Israel

 Process Received SHAAM Certificates File for Israel
Create SHAAM Supplier File for Israel
Navigation – Tools  Scheduled Processes  Schedule New Process  Create SHAAM Supplier File
for Israel
This process generates the file with the data of all the suppliers that were created or whose
certificate has expired to receive the new exemption certificate from them.
Report Parameters:
* Legal Entity: Select the corresponding legal entity from the list of values
* From Date: The first time you execute the report, should run for all the
suppliers, but then it will be scheduled once a week and this parameter will be incremental and
will chose the last date this report was executed.
* Use Alternate Name: Yes
* Withholding Tax Regime: leave the default
* VAT Regime: Leave the default
Process Received SHAAM Certificates File for Israel
Navigation – Tools  Scheduled Processes  Schedule New Process  Load Interface File for
Import
Before running this process it is necessary to Load the file provided by SHAAM into the system.
This is done through the process “Load Interface File for Import” and in the import process
need to select the “Process Received SHAAM Certificates File for Israel”
Process Received SHAAM Certificates File for Israel
Navigation – Tools  Scheduled Processes  Schedule New Process  Process Received SHAAM
Certificates File for Israel
This process reads the file that was received from SHAAM and generates the corresponding
exemption certificates on the suppliers of the selected Legal Entity (In the case a supplier is
assigned to more than one LE the process will update all the sites for that country.
Withholding Tax Reports
 Withholding Tax Report for Israel

 Withholding Tax File to Tax Authority for Israel
 Withholding Tax Annual Certificate to Suppliers for Israel
Withholding Tax Report for Israel
In order to appear in the withholding report, it is necessary to populate the supplier regional
information
Regional Information: Withholding Tax for Israel

Navigation – Tools  Scheduled Processes  Schedule New Process  Withholding Tax Report
for Israel
This process lists all the payments and withholdings that were done in a certain
period to the suppliers
Navigation – Tools  Scheduled Processes  Schedule New Process  Withholding Tax Report
for Israel
Parameters:
* Ledger: Select the ledger in ILS
* Calendar: PLAYTIKA_MONTH_CAL
* Year: Year you want to run the report
* From Period: Select the start period you want to bring the data
* To Period: Select the period as of you want to brind the data
* Legal Entity: Select the legal entity associated to the ledger
selected on the first parameter.
* Supplier Type: All
* Supplier Information Level: Supplier
* Name Level: Supplier Alternate Name
* Reporting Level: Detail
* Report Order By: Supplier Number
Withholding Tax File to Tax Authority for Israel
Navigation – Tools  Scheduled Processes  Schedule New Process  Withholding Tax File to
Tax Authority for Israel
This process generates the file to report the withholdings of the period to the tax
authorities
Withholding Tax File to Tax Authority for Israel
Navigation – Tools  Scheduled Processes  Schedule New Process  Withholding Tax File to
Tax Authority for Israel
Parameters:
* Existing Manual Report: Manual report does not exist
* Existing Complementary Report: Complementary report does not
exist
* Payer Position: Payer is a company
Withholding Tax Annual Certificate to Suppliers for Israel
Navigation – Tools  Scheduled Processes  Schedule New Process  Withholding Tax
Annual Certificate to Suppliers for Israel
This process generates the suppliers annual withholding certificates.

Withholding Tax Annual Certificate to Suppliers for Israel
Navigation – Tools  Scheduled Processes  Schedule New Process  Withholding Tax
Annual Certificate to Suppliers for Israel
Parameters:
* From Supplier: From supplier number that want to generate the
certificate
* To Supplier: To supplier number that want to generate the
certificate
Custom Control Reports
 Report control exchange rate for tax reporting purposes: Foreign
Currency Transactions Without Tax Rate Report
 Report to control transactions for VAT reporting: Invoice VAT

Reporting Status Report
Navigation – Reports & Analytics  Browse Catalog  Shared Folders  Custom  Playtika
ERP  Financials  Financial Alerts  Foreign Currency Transactions Without Tax Rate Report
This report is to control that the invoices in foreign currency have the tax currency field
populated. The Israel VAT Report uses this field to calculate the amount in ILS of foreign
currency invoices. The purpose of fulfilling the field is in the case the currency conversion used
by the supplier in his invoice is different from the system conversion rate, both the supplier and
the company report the same amount in ILS to the tax authorities.
Parameters:
* Organization: Choose the organization for which you want to
run the report
* Proforma: This parameter is to choose if you want to run the
report for proforma invoices only, to all invoices or only non proforma.
* From Invoice Date: Date from which you want to control the
invoices
* To Invoice Date: Date to which you want to control the invoices
* Invoice Number: If you want to run the report for a particular
invoice.
ERP  Financials  Financial Alerts  Foreign Currency Transactions Without Tax Rate Report
ERP  Financials  Financial Reports  Payables  Invoice VAT Reporting Status Report
This report is check that all the invoices that should have been reported into VAT have been
reported and to know in which period they have been reported.
Parameters:
* Organization: Choose the organization for which you want to
run the report
* Period: This parameter is to indicate for which period(s) you
want to control.
* Source: Parameter to determine if you want to see only
payables invoices, only receivables or both.
* Reported: To indicate whether to include only reported
invoices, non reported ones or both.
* Invoice Number: If you want to run the report for a particular
invoice.
* Party: If you want to run the report for a particular customer/
supplier.
ERP  Financials  Financial Reports  Payables  Invoice VAT Reporting Status Report
Thank you

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Key User Training

FIN – Transaction Taxes-Israel

• View VAT Setup

• Withholding Tax Setup

• Update Supplier exemption certificates

• Custom control reports

 Normal Scenario – Default tax calculation

1. Enter Supplier and invoice

* The invoice should be created to a self invoice supplier. The supplier

* The invoice should be created to a self invoice customer. The customer

1. Click Edit Taxes to modify taxes

 Normal Scenario – Default tax calculation

Enter AR Invoice Details and save the invoice

1. Click on View Accounting

2 . Regime Subscription – Add BU’s and LE’s to which Tax is applicable

1. Specify Default Jurisdiction, Status, Recovery rate and tax rates

1. Specify Default Jurisdiction, Status, Recovery rate and tax rates

• IL_VAT_REC_1/4: 25% recoverable

1. Search and view existing tax rates

• IL-VAT-I: 16% for Palestinian customer

1. Tax Rate header information

2 . Tax Rates Percentage

1. View Tax Accounts for each Business Unit

Rule Type Rule details

1 - IL_VAT_EXEMPT_NOT_APPLICABLE: Rule that whenever the tax classification is

1 - IL_TRX_TYPE_NOT_APPLICABLE: Rule that for certain receivables transactions

2 - IL_VAT_O_APPLICABLE: Whenever the bill to is equal or not equal to Israel, the

 Select Transactions for Tax Reporting

* Reporting Identifier: Select the corresponding

 Withholding tax regime, tax, tax rate

2 . Regime Subscription – Add BU’s and LE’s to which Tax is applicable

1. Specify Default Jurisdiction, Status, and tax rates

1. Search and view existing tax rates

* IL_WHT_0: Default Withholding for non Israeli suppliers

* IL_WHT_30: Default Withholding for Israeli suppliers

There are two rules:

* IL_EXM_NA: If tax classification is equal to IL_WHT_EXEMPT the result is Not Applicable

 Create SHAAM Supplier File for Israel

 Withholding Tax Report for Israel

Regional Information: Withholding Tax for Israel

This process generates the suppliers annual withholding certificates.

 Report to control transactions for VAT reporting: Invoice VAT

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