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Tax Type. Type of tax you are defining: Sales, Use, Offset, Withholding, or User-defined. For more information on Tax Types, see Tax Types.

Rate. The rate for the tax name you are defining. For example, if you are defining a 6.5% sales tax, enter 6.5.

For Withholding Tax type tax names, do not enter a tax rate in this field. Enter tax rates for Withholding Tax type tax names in the Tax Rates region of the Withholding Tax Details window.

For Sales, Offset, and user-defined tax types, Approval validates the tax amount you enter on invoice distributions for a particular tax name against the sum of the Item type distributions that have the same tax name. If the implied rate of the tax distributions you enter is different from the rate you enter here for a particular tax name, including the tax tolerance you define, Approval places a Tax Variance hold on the invoice.

For Use type tax names, Payables uses the rate you enter here to determine the amount of your tax liability when you submit the Use Tax Liability report.

For tax names with Sales, Withholding, User-defined, or Use tax types, you can only enter a rate greater than or equal to zero.

For tax names with Offset tax types, you can only enter a rate less than zero. When you define an Offset tax name, you should enter the same rate (but with a negative value) as the tax name it is offsetting. For example, if you have a VAT tax of 4% and are defining an offsetting tax for this tax, enter -4 in this field.

Description. A description of the tax name. The system displays the Tax Name and Description on a list of values whenever you need to select a Tax Name.

Enable for Self-Service User. If you have installed Oracle Self-Service Web Applications, and you want this tax name to appear on the Tax Name poplist in the Enter Receipts page for Web Employees, then enable this option. See: Entering Taxes on Expense Reports.

Inactive Date. Date tax name becomes inactive. The system does not display in a list of values any tax name with an inactive date that is on or before the current date.

GL Account. Account to which you want to charge tax amounts for your tax name. You cannot enter an Account which you have defined as a summary account.

If you define a Sales, Withholding, or User-defined type tax, you should enter a tax expense account. For a Sales, Withholding, or User-defined type tax names, Payables creates a separate invoice distribution automatically for the amount of tax, using the tax name account for the line. When you define a Use tax, Payables does not use the account you define here since Payables does not create a tax distribution for a Use type tax.

You can choose to prorate your tax expense across selected invoice distributions when you use the Prorate feature in the Distribution window of the Invoice Workbench.

Account Description. Payables displays the description of the GL Account.

VAT Transaction Type. This field is used only for Belgian VAT tax reporting. For more information, see: Oracle Applications Belgium Globalizations Reference Manual.

Withholding Tax Details Window Reference

Number. Supplier number of the Tax Authority.

Site. Tax Authority Supplier site to which you will remit withholding taxes.

Amount Basis. To enter amount ranges in the Tax Rates region, you must specify an Amount Basis and a Period Basis. Payables uses the Amount Basis and Period Basis to determine the amount limit for a tax rate for a Withholding Tax type tax name.

If you want to define a tax rate with a taxable amount range, choose Gross as the Amount Basis. For example, to specify that you want a tax rate of 10% for the first $10000 subject to withholding tax, choose Gross as the Amount Basis and enter 0 as the From amount and enter 10000 as the To amount. If you want to define a tax rate with a tax amount range, choose Withheld Amount as the Amount Basis. For example, to specify that you want a tax rate of 10% for the first $10000 of tax, choose Withheld Amount as the Amount Basis and enter 0 as the From amount and enter 10000 as the To amount. You can also use amount ranges as limits for a taxable amount or tax amount by specifying zero as a tax rate beyond a certain amount range.

• Gross Amount. Enter Gross Amount if you want to define an acceptable range for the total invoice amounts you will allow to tax.

• Withheld Amount. Enter Withheld Amount if you want to define an acceptable range for the total amount of tax to withhold.

• Invoice. Enter Invoice if you want to apply an amount range to a single invoice.

• Period. Enter Period if you want to apply an amount range to a Withholding Tax period.

Currency. The system displays the functional currency assigned to your set of books. Any period limit you define applies to only those invoices entered in your functional currency.

Period Limit. The maximum amount of tax to withhold for a Withholding Tax type tax name within a period. Payables will not withhold taxes for this tax name during a period once this limit is reached.

Create Tax Group. Enable to automatically create a tax withholding group from a single Withholding Tax type tax name. To use a Withholding Tax type tax, you must assign it to a withholding tax group. Define a Withholding Tax Group with multiple Withholding Tax type tax names in the Withholding Tax Groups window.

Tax Rates region

Type. Rate type for the Withholding Tax type tax name.

Effective Dates: From/To. The effective dates for a rate. You can enter one or both fields.

Enter effective dates for a tax rate with or without amount ranges. You can enter multiple rates for a Withholding Tax type tax name with overlapping effective date ranges only if you enter unique contiguous amount ranges for the same effective date range. For example, if you want to use the effective date range 01-JAN-1996 to 31-DEC-1996 for two different amount ranges, one being 0 to 1000, the second being 1000 to 10000, the starting amount for the second range must be exactly the same amount as the ending amount of the first range.

Amount Range: From/To. The amount range for a tax rate. You can enter one or both fields. Amount ranges with overlapping effective date ranges must be contiguous.

If you are entering a tax rate with an amount range, you must first specify in the Withholding Tax Details region the Amount Basis and the Period Basis. You can apply an amount range to either a single invoice, or to an amount-to-date period.

Rate. The rate for the Withholding Tax type tax name you are defining.

Comments. Enter any comments for your reference.

See Also

Automatic Withholding Tax Overview

Special Calendar

Withholding Tax Groups