Managing Party Tax Profiles

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 Objectives

After completing this module, you should be able to:

• Understand the use and content of party tax profiles
• Understand self-assessment on Payables transactions
• Understand offset taxes
• Set up a tax exemption
• Set up a tax registration
• Set up a party tax profile

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 Agenda

– Overview of Party Tax Profiles

– Set Self-Assessment Options
– Set up Offset Taxes
– Input a Tax Exemption
– Define a Tax Registration

Party Product Place Process

2 Configuration

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 E-Business Tax Architecture

5
Tax Repository, Reports, KPIs, Dashboards ….
Management
Services Calculate Determine Meta
4 Taxes Recovery ….. Data
Registration Rates Taxonomy
Rule Tax Regimes Place of
3 Taxes Supply Taxable Basis Recovery
& Rules
Engine
Party Product Place Process
2 Configuration
Meta Data
Repository

1
Tax Tax Jurisdiction Status
Authority Tax
Definition Regime Rates

Single Data Model

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E-Business Tax Home Page –
Party Tax Profiles

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 Using Party Tax Profiles

Legal Entity Tax

Registrations
1st Party
Establishment
(HQ and Secondary)
Party Customer
Tax Profile Exemptions
Operating
Unit
Party Fiscal
Tax
Classifications
Authority
Configuration
3rd Party & External Components
Options
Party Sites
E-Business Tax
Components

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 Party Tax Profile

Party Tax Profile

• Main Information
• Tax Registrations
• Classifications
• Tax Reporting Codes
• Configuration Options
• Account Tax Details

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First Party Legal Entity Tax Profile

Party Tax Profile

• Main Information
• Classifications
First Party • Tax Reporting Codes
Legal Entity
• Configuration Options

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First Party Legal Establishment Tax Profile

Party Tax Profile

• Main Information
• Tax Registrations
First Party • Classifications
Legal
Establishment • Tax Reporting Codes

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 First Party Tax Profile Setup

• Prerequisites:
– Set up legal entities and legal
establishments
– Set up tax regimes
• Optional prerequisites:
– Set up legal entity secondary
establishments
– Set up taxes
– Set up tax jurisdictions
– Set up lookup codes
– Set up party fiscal classifications
– Set up tax reporting types

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 Operating Unit Tax Profile

Party Tax Profile

• Main Information
• Tax Reporting Codes
Operating • Configuration Options
Unit Owing
Tax Content

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 Tax Authority Tax Profile

Party Tax Profile

• Main Information
• Tax Reporting Codes
Tax Authority

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 Third Party Tax Profile

Party Tax Profile

• Main Information
• Tax Registrations
• Classifications

Third Party – • Tax Reporting Codes

Customers • Account Tax Details
and Suppliers (migrated data only)

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 Third Party Tax Profile Setup

• Prerequisites:
– Set up parties
• Optional prerequisites:
– Set up tax regimes
– Set up taxes
– Set up tax jurisdictions
– Set up lookup codes
– Set up party fiscal classifications
– Set up tax reporting types
– Set up customer and supplier accounts

Copyright © 2007, Oracle. All rights reserved.

 Agenda

– Overview of Party Tax Profiles

– Set Self-Assessment Options
– Set up Offset Taxes
– Input a Tax Exemption
– Define a Tax Registration

Party Product Place Process

2 Configuration

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 Self-Assessment Setup

Set Self-Assessment Options:

• At the tax profile level.
• At the tax registration level.
• On an individual tax line.

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 Agenda

– Overview of Party Tax Profiles

– Set Self-Assessment Options
– Set up Offset Taxes
– Input a Tax Exemption
– Define a Tax Registration

Party Product Place Process

2 Configuration

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 Offset Taxes

An offset tax calculates and records third party Payables

tax liabilities for:
• Reverse charges
• Self-assessments
• Consumer's Use tax (US)

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 Offset Taxes Setup

Setup Tasks:
• Enable offset tax calculations for each applicable
transaction event and party
• Set up the offset tax, tax status, and tax rate
• Set up the original tax and assign the offset tax rate
code to the original tax rate

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 Agenda

– Overview of Party Tax Profiles

– Set Self-Assessment Options
– Set up Offset Taxes
– Input a Tax Exemption
– Define a Tax Registration

Party Product Place Process

2 Configuration

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 Tax Exemptions

Tax exemptions apply to a specific:

• Customer
• Customer and product combination
Assign tax exemptions to:
• Tax regime and configuration owner
• Tax
mpt
• Tax jurisdiction and tax rate Ex
e

• Product

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 Tax Exemptions Setup

• Prerequisites:
– Set up customer third parties
– Set up tax regimes
– Set up taxes (for exemptions for a specific tax)
– Set up tax statuses (for exemptions for a specific tax
status)
– Set up tax rates (for exemptions for a specific tax rate)
– Set up tax jurisdictions (for exemptions for a specific
tax jurisdiction)
– Set up inventory organizations (for product exemptions)
– Set up inventory items (for product exemptions)

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 Agenda

– Overview of Party Tax Profiles

– Set Self-Assessment Options
– Set up Offset Taxes
– Input a Tax Exemption
– Define a Tax Registration

Party Product Place Process

2 Configuration

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 Tax Registrations

Tax registrations apply to:

• First party legal establishments
• Customers / customer sites
• Suppliers / supplier sites

E-Business Tax uses tax registrations in:

• Tax determination
• Tax reporting

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 Tax Registrations Setup

• Prerequisites:
– Set up tax regimes
– Set up parties
• Optional prerequisites:
– Set up taxes
– Set up party tax accounts
– Set up bank accounts
– Set up lookup codes for registration
type, status, and reason
– Set up tax jurisdictions
– Set up tax authorities

Copyright © 2007, Oracle. All rights reserved.

 Summary

In this module, you should have learned how to:

• Understand the use and content of party tax profiles
• Understand self-assessment on Payables transactions
• Understand offset taxes
• Set up a tax exemption
• Set up a tax registration
• Set up a party tax profile

Copyright © 2007, Oracle. All rights reserved.