How to Enter EU Tax Registration Data to the Customer Party by info93725942853

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									FACTSHEET:

Enter EU Tax Registration Data to
the Customer Party


In this section you will learn how to enter EU VAT
Registration Data to the Customer Party located in the
EU = European Union.

In order to charge a 0% intra EU VAT                                                to be captured. You will also be shown
rate to a customer in the EU, the customer                                          how to associate tax classifications to
must provide a valid VAT registration                                               customers so you can drive tax rates
number. Customers outside the EU may                                                form the customer (such as making
or May not require the tax profile details                                          them exempt).



Oracle Prerequisites:
 A Customer Party (Customer) is created.
 If a new Customer Party, start the process from the Create a Customer Party through
  Sales Dashboard or similar.


Navigation:
Receivables Manager Responsibility
 Customer  Standard.
1. Search for your Customer Party
2. Click the Customer name link
3. Click the Tax Profile Tab


Header or Site?
You can enter the Tax details at either the Header level of the customer or at the site
level. There are no tax details held at the ‘account’ level of a customer. All sites will use
the details at the header level unless they have tax details entered at the site level. The
system will always look at site first then header.



eBiz Answers Ltd. FACTSHEET: Enter Tax EU Tax Registration Data to the Customer Party. Feb 2013.                              1
FACTSHEET:

Enter EU Tax Registration Data to the Customer Party



When there is only one VAT Registration Number for the customer
Step.1
Click the Tax Profile link at the customer party level.




Step 2.
Scroll down to the Tax Registrations section.
Enter the ‘Default Reporting Country Name’. This should be the country that your
customer VAT number starts with, i.e. DE123456789 would be Germany.
Note: Before entering the Tax Registration Number to the section, verify the validity
of the VAT-number.
Validation can be done on the Internet, by email or phone. On the Internet:
http://ec.europa.eu/taxation_customs/vies/vieshome.do (validation of the Tax
Registration Number only).
Enter the VAT number in the ‘Default Reporting Registration Number’ field with no
spaces, - or.




The system will validate the tax registration number you have just entered against the
country in the default reporting country name. If the format you have entered is correct
then there will be no error.




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FACTSHEET:

Enter EU Tax Registration Data to the Customer Party



Step 3.
Now enter the Tax Registration details. Click the ’Create’ button.




You are on ’Create Tax Registration Details’ Screen.

Tax Regime Code: Click the magnifying glass (symbol). Use radio button to select the
Regime code XX VAT where XX is the same as the Operating Unit country code. DO
NOT user the country code of the tax registration number unless of course it is the same
as the Operating Unit1. So if it is an Italian Operating unit and the customer tax
registration number is DE123456789 then you use IT VAT as IT is the same as the
country code of the OU. If you are setting this up for a Germany Operating unit and the
customer tax registration number is DE123456789 then you use DE VAT as the OU is
linked to Germany (DE).

TAX: This should be the same as the Tax Regime and is very important that it is entered
as there are settings linked to the Tax that are not linked to the Regime.

Tax Registration Type: Click the magnifying glass (symbol). Use radio button to select
‘VAT’ or if instructed otherwise the appropriate value.

1
  This assumes that there is one OU per country. If the OU has more than one tax regime assigned to it then use the country code of
the tax regime that would be used against this customer. If the customer can have multiple tax regimes then you will need to set up a
tax profile for each of the regimes.


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Enter EU Tax Registration Data to the Customer Party



Step 3. Continued.
Tax Registration Number: This is not required as you entered it already in the ‘Default
Reporting Registration Number’ field.

Tax Registration Status: Registered. Search in the Tax Registration Status (LOV)
section, and in most cases select REGISTERED. If the customer is not registered, select
‘NOT REGISTERED’. You should only require REGISTERED or NOT REGISTERED.
Any customer that has this value left NULL will be treated as ‘REGISTERED’ and this will
affect the tax rate calculated.

It is also very important that you enter the VAT registration number and registration status
for all of your EU customers. If you do not, the system will treat the customer as
registered and charge a 0% EU tax. If the customer is later to be found out to not be
registered for VAT in Europe, then it will be your company who is then liable for this VAT.


Step 4.
Effective From: When a customer with ‘NOT REGISTERED’ Status applies for
VAT Registration and informs you the new VAT number, please set today to be the
effective from date, otherwise use a date that is before the date of any transactions you
will create for that customer.

Example.




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Enter EU Tax Registration Data to the Customer Party



Example Data.
Where ES is the country code of the Operating unit country.
 Tax Regime Code: ES VAT
 Tax: ES VAT
 Tax Registration Type: VAT
 Tax Registration Status: REGISTERED. If the customer is not registered, then NOT
  REGISTERED.
 VAT registration Number: Not needed here
 Effective From Date: 01-JAN-2000
 Rounding Rule: Nearest (This should not matter if you have set the rounding to be
  controlled by the regime only)

Step 5.
Click the ‘Apply’ button.
In case the Tax Registration Number is not correct, you will get an error message: "Tax
Registration Number – please enter a valid tax registration number." This is because
Oracle does a validation on the VAT number to ensure it is a correct number.

If everything is correct, you receive a confirmation: "Your changes have been saved."

    Note:
    If you have already entered the tax registration number in XX VAT regime tax profile for
    another customer (or supplier) then you cannot enter it again here as there is a validation
    check to stop duplicate numbers. However, this is a setting that can be changed.



Step 6.
If the VAT Registration number is not from the country where the country is addressed
then this does not matter, you still set up the tax profile based on the country code of the
VAT number.

Check the following sections:

Customer Information:
Basic information from the Customer Party (e.g. Organization Name and Registry ID).

Main Information:
Allow Tax Applicability – should not matter but best to check this box.
Allow Offset Taxes (for foreign customers) – no need to do anything, leave unchecked.
Based on setups.


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Enter EU Tax Registration Data to the Customer Party



Step 6. Continued.




The option "Set for Self Assessment / Reverse Charge" – no need to do anything, this
should be left unchecked. Based on setups.

Default Controls:
Do not Tab the option "Set Invoice Values as Tax Inclusive". Taxes are always exclusive
and added to our prices and inclusive taxes should be controlled by tax rules.


Step 7.

Click the ‘Apply’ button.

In this lesson, you have learned how to enter EU Tax Registration Data to the Customer
Party located in the European Union.




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FACTSHEET:

Enter EU Tax Registration Data to the Customer Party



When there is an additional tax registration number that is
specific to certain customer sites.
In this section you will learn how to enter the Additional Tax Registration Data to the
Customer Party located in the EU = European Union. It is fairly common for a customer to
be registered for VAT in more than one EU state, such as the UK and Finland. For this
reason we need to be able to tell the system what VAT registration number to use when
creating transactions for any given customer. The way the system will do this is to first
look at the customer site tax profile and if there is no tax data there, it will then use the
party tax profile.

To get this point go to: Receivables Manager Responsibility  Customer  Standard
1. Search for your Customer Party
2. Click the Customer name link
3. Choose the site that has the different tax code

Oracle Prerequisites:
 A Customer Party is created.
 Basic Tax Profile is created in the Accounts.
 If a new Customer Party, start the process from the Create a Customer
  through Sales Dashboard.


Step 1.
Click on the ‘Site Detail’ button.




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Enter EU Tax Registration Data to the Customer Party



Step 2.
Click on the ‘Tax Profile’ button.




NOTE: If this is not visible then it is likely that you are using a customer form from a
module such as Order Management and as such, in order to see the tax profile tab, you
need to launch this from customers via Receivables.


Step 3.
Tax Registrations: In order to have the correct tax details on invoices you still need to fill
in another set of tax details for system purposes.

However, this procedure is not needed to be done for Domestic Customers at all (but it
does not hurt either if you do it).

Click the ‘Create’ button.




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Enter EU Tax Registration Data to the Customer Party



Step 4.
Follow the exact same setup steps as if you were entering the tax information at header
level. See first part of this document.

You will receive a confirmation: "Your changes have been saved".

You are taken back to the customer site page. You need to go back to the Tax profile
screen again.




Click on the Tax profile button again – you will see that your tax profile has been created.




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FACTSHEET:

Enter EU Tax Registration Data to the Customer Party



Associate Fiscal Classifications.
From time to time, there will be a requirement for some Customer to put in an Associated
Fiscal Classification. This is a way of identifying the Customer as a special Customer and
to handle it differently for Tax purposes and is like a ’Tax Override’ for customers or
suppliers.

NOTE: Currently at the point of this document creation, this step needs to be done at Site
Level as there is a bug when done at header level, so please do your own testing to see if
the issue has been fixed. When you assign to the site level, in order for the ’Associated
Fiscal Classification’ to work, the tax rules need to be looking at either the Bill to site or
the Ship-to site so be careful as to what site you make the attachment to.


Step 1.
Under the Tax Profile Tab of a customer, Click on the ’Add Another Row’ button under
Associated Fiscal Classifications.




Save your work.




Step 2.
Choose the appropriate” EBIZ XX TAX CLASSIFICATION” where EBIZ is for ’EBIZ
ANSWERS’ and XX is the country code which relates to the tax regime country code for
the Fiscal Classification Type. So if the OU is Hungary then replace XX with HU. Then
choose a value from the Fiscal Classification Code by first clicking on the magnifying
glass icon.




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Enter EU Tax Registration Data to the Customer Party



Step 2. Continued.




The Fiscal Classification codes should list all the possible codes that this supplier could
be linked to. These codes are important as they are linked to tax conditions and will give
different tax outcomes depending on what fiscal classification is chosen.

Step 3.
Enter an ‘Effective From’ date.




Save your work.

Note: the amount of Customers that will require this associated Fiscal Classification will
be very small as it is used for the exception rather than the majority so this set up is only
optional. You can also have multiple classifications set against one supplier.

Summary.
If you are entering an EU tax registration number then your tax registration status will look
as follows.




This FACTSHEET was produced by eBiz Answers Ltd. We hope it was helpful.
For more FACTSHEETS or advice visit: www.ebizanswers.net


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