Oracle Cloud Tax | Tax Rule to Self Assessment Part 2

Описание: Tax Rules

Tax determination can be configured as a simple process with all default values for the determination points. It can also be enhanced with the definition of tax rules to identify and process any exceptions to the common treatment scenario.

The tax rules that are part of the tax determination process are organized into rule types. Each rule type identifies a particular step in the determination and calculation of taxes on transactions. The tax determination process evaluates, in order of priority, the tax rules that are defined against the tax configuration setup and the details on the transaction. The application processes tax rules in order of evaluation until one evaluates successfully, then the process stops. If none of the rules defined evaluate successfully the associated default value is used.

The tax line determination process uses the information of the transaction header and the transaction line and any information derived by the transaction attributes such as party fiscal classification to determine the tax lines. The rule types and related processes are used for tax line determination and tax calculation.

Tax rules have the following elements as part of the definition:

Rule type and rule attributes:
Tax regime, configuration owner, tax and optionally, tax status and tax recovery type
Event class association
Geography association
Effective dates
Determining factors and condition sets
Rule order and status
Tip: Always try to minimize tax rules and setup for tax regimes and taxes. Tax rules are specific to a tax regime and tax. Thus, by minimizing the number of tax regimes and taxes, the number and complexity of the tax rules can be minimized.
Tip: Move any complexity from the beginning to the end of the rule types and supporting setup. For example, use tax recovery rate rules in preference to setting up specific tax rates with individual defaults associated with tax recovery rates.

Tax Determining Factor Sets and Condition Sets
A tax determining factor is an attribute that contributes to the outcome of a tax determination process, such as a geographical location, tax registration status, or a fiscal classification. Determining factors are represented in tax rules as the following concepts:
• Determining factor class: Tax determining factors are categorized into logical groupings called determining factor classes, such as Accounting or Geography.
• Tax class qualifier: Use a class qualifier with a determining factor class when it is possible to associate a determining factor class with more than one value on the transaction. For example, you need to specify which location type, such as ship-to party, a specific geography level, such as country, is associated with.
• Determining factor name: Each determining factor class contains one or more determining factor names that constitute the contents of the class.
The result of a determining factor class, and its class qualifiers and determining factor names, is a list of available factors for use with tax conditions. Each tax condition within a tax condition set must result in a valid value or range of values for tax determination.

The evaluation process is subdivided into the following processes:

Determine Applicable Tax Regimes and Candidate Taxes
Determine Place of Supply and Tax Jurisdiction
Determine Tax Applicability
Determine Tax Registration
Determine Tax Status
Determine Tax Rate
Determine Taxable Basis
Determine Tax Calculation
Determine Tax Recovery


The complexity of setup can be classified as follows:
No tax rules required: Oracle Fusion Tax uses the default tax status, tax rate, and tax recovery rate defined for the tax. Tax rules aren't required. However, tax rates can vary by:
Class of products set up using tax exceptions
Location set up using tax jurisdictions
Party set up using exemption definitions
In addition, applicability can still be controlled without the use of tax rules such as through the party tax profile that you define for a supplier.
Simple tax rule regimes: The tax authority levies tax on your transactions at the same rate, with a simple set of identifiable exceptions. The exceptions either apply to:
One part of the transaction only, such as to certain parties
Combination of parties, products, and transaction processes that you can summarize in a simple way.
In such cases, use a simple set of tax rules, for example, to identify place of supply and tax registration, and use default values for other processes.
Complex tax regimes: Tax regimes in certain countries require a complex logic to determine the applicable taxes and rates on a transaction. Both tax applicability and tax rates can vary. For example, by place of origin and place of destination, party registration, status, service, or a combination of factors.