Setting Up Tax Authorities and Tax Codes

To set up tax authorities and tax codes, use the Tax Authorities component (TAX_AUTHORITY) and the Tax Codes component (TAX_CODE_VAT).

This section provides an overview of tax authorities and tax codes and discusses:

Understanding Tax Authorities and Tax Codes

Your institution may be under the jurisdiction of one or more tax authorities that require you to charge taxes for certain transactions. To process tax charges, you must define one or more tax authority codes.

Tax codes are used to link taxes to charge item types. Each tax code must include at least one tax authority, but can include more than one if your institution is subject to more than one taxing authority. For example, you may need to charge students both state and local sales taxes for books. By setting up a tax code that combines the two authorities, you can charge both taxes.

Pages Used to Set Up Tax Authorities and Tax Codes

Page Name	Definition Name	Navigation	Usage
Tax Authority	TAX_AUTHORITY	Set Up SACR, and then Product Related, and then Student Financials, and then Charges and Payments, and then Tax Authorities, and then Tax Authority	Define tax authorities.
Tax Authorities - Rebate	TAX_AUTHORITY_PSB	Set Up SACR, and then Product Related, and then Student Financials, and then Charges and Payments, and then Tax Authorities, and then Rebate	Specify VAT rebates for tax authorities.
Tax Authorities - Summary	TAX_AUTHORITY_VAT	Set Up SACR, and then Product Related, and then Student Financials, and then Charges and Payments, and then Tax Authorities, and then Summary	Review tax authority parameters.
Tax Codes	TAX_CODE_VAT	Set Up SACR, and then Product Related, and then Student Financials, and then Charges and Payments, and then Tax Codes	Define tax codes using one or more tax authorities.

Defining Tax Authorities

Access the Tax Authority page (Set Up SACR, and then Product Related, and then Student Financials, and then Charges and Payments, and then Tax Authorities).

This example illustrates the fields and controls on the Tax Authority page. You can find definitions for the fields and controls later on this page.

Field or Control	Description
Tax Code Type	Select a tax code type of S (sales tax) or V (value added tax).
Percent	Set the default percentage of tax that the authority assesses.
Same Account and Account Type	Select the Same Account check box if you want the tax assessed to appear in the same account as its associated charge. If you clear the check box, you can select a different account type in the Account Type field. Warning! For accuracy in payment shuffling, Oracle recommends not selecting Same Account and to identify an account type that's unique for taxes. If the tax fee can be waived, the Tax Waiver account type should be the same value as the Tax Authority account type.
Item Type	Select the item type that you have defined for transactions from this tax authority.
Service Impact	Select the service impact that exempts customers from this taxation.

Specifying VAT Rebates for Tax Authorities

Access the Tax Authorities - Rebate page (Set Up SACR, and then Product Related, and then Student Financials, and then Charges and Payments, and then Tax Authorities, and then Rebate).

This example illustrates the fields and controls on the Tax Authorities - Rebate page. You can find definitions for the fields and controls later on this page.

Field or Control	Description
VAT PSB Type (value added tax public service body type) and Rebate Rate	If applicable, select the value added tax public service body type and enter a rebate rate.

Defining Tax Codes

Access the Tax Codes page (Set Up SACR, and then Product Related, and then Student Financials, and then Charges and Payments, and then Tax Codes).

This example illustrates the fields and controls on the Tax Codes page. You can find definitions for the fields and controls later on this page.

Field or Control	Description
Consolidate Same Item Type	If you are creating a code that combines two or more different tax authorities, you can select this check box to consolidate the tax transactions that make up the code into the same item type during posting. Otherwise, the system creates each transaction on an account as individual entries.
Authority	Select the tax authority that you want to attach to the tax code.
Percentage	The default percentage appears to the right of each authority that you add.