Define Tax Exemptions

Online VAT Reporting has specific requirements for reporting tax exemptions, which are applied to your supplier and customer invoices.

Prerequisites

The following table describes the navigation of the setup items associated with tax exemptions: Ensure that the Allow tax exemptions option is selected for the following setup items before you define tax exemptions.

Setup Item	Navigation	Allow Tax Exemptions
Tax regimes	Navigator> Setup and Maintenance> Manage Tax Regimes	Yes
Taxes	Navigator> Setup and Maintenance> Manage Taxes	Yes
Tax rates	Navigator> Setup and Maintenance> Manage Tax Rates and Tax Recovery Rates	Yes
Tax statuses	Navigator> Setup and Maintenance> Manage Tax Statuses	Yes

Define Tax Exemptions

You can define tax exemptions either at the third party or the third-party site level. To define tax exemptions, do the following:

1. Provide a Party Name for your third party. The third party can either be a supplier or a customer.

2. In the Exemption Information section, enter the Tax Regime Code, Configuration Owner, and Start Date.

3. In the Exemption Type and Percentage section, enter the Exemption Percentage.

   Tip: Enter 100 as the Exemption Percentage if the transactions are fully exempt from taxes.

4. Provide additional information as applicable for the third party.