Tax Reporting Types and Codes

Use tax reporting types to capture additional tax information on transactions for your tax reports. You can use tax reporting types for your internal reporting needs and to fulfill country-specific reporting requirements.

Create tax reporting codes for a tax reporting type to provide additional granularity for tax reporting.

A tax reporting type identifies a specific unit of information, such as a date or a text comment, to associate with a specific tax usage, such as a fiscal classification or tax jurisdiction. You can:

• Define tax reporting types at a generic level, tax regime level, or tax level.

• Define the validation for the tax reporting type to add tax reporting codes such as data type and a minimum and maximum length. Data types include Date, Numeric value, Text, and Yes or no indicator.

• Use tax reporting codes you create under one tax reporting type across various entities, such as tax, tax status, tax rate, party tax profiles, and fiscal classifications.

  Note: To use a tax reporting type for a particular entity, associate that entity to the tax reporting type in the Reporting Type Uses region on the Create Tax Reporting Type page.

There's no impact of the tax reporting type on tax calculation. The tax reporting codes are used in the tax reports.

Tax configuration facilitates the association between various entities and tax reporting codes. The entity details are stored as part of the tax repository. During tax report generation, necessary tax codes are derived based on the entities associated with the tax line. The Tax Reporting Ledger handles the functionality to include the reporting type code.

Tax Reporting Type Uses

Some reporting type uses have a one to one relationship of tax reporting type use to an entity, such as tax, tax jurisdiction, tax rate, and tax status. For example, the tax reporting type use of Tax defines tax reporting type codes for association to taxes you define and the Tax Jurisdiction tax reporting type use defines tax reporting type codes for association to the tax jurisdictions you define.

The Fiscal Classification tax reporting type use defines tax reporting type codes for association to the following classifications:

• User-defined fiscal classifications

• Product category fiscal classifications

• Document fiscal classifications

• Transaction fiscal classifications

The Party Tax Profile tax reporting type use defines reporting type codes for association to the following party tax profiles:

• Legal entity tax profiles

• Legal reporting unit tax profiles

• Business unit party tax profiles

• Third-party tax profiles

• Third-party site tax profiles

The Process Result tax reporting type use defines reporting type codes for association to the following rule types:

• Direct tax rate determination rules

• Place of supply rules

• Tax applicability rules

• Tax registration rules

• Tax status rules

• Tax rate rules

• Taxable basis rules

• Tax calculation rules

Tax Reporting Types and Codes and Their Use in Tax Reporting

The following table describes key predefined tax reporting types and codes, their association and use in tax reporting:

Country	Reporting Type and Code	Associated to	Use
Italy and Spain	REPORTING_STATUS_TRACKING Y	Tax	Used to track tax lines that aren't yet finally reported
Italy and Spain	EMEA_VAT_REPORTING_TYPE VAT	Tax	Used in the EMEA VAT selection process
Italy	EMEA_VAT_REPORTING_TYPE Custom bill	Tax rate code	Used in the Italian Purchase VAT Register definition program to recognize customs invoices
Italy	EMEA_VAT_REPORTING_TYPE Self invoice	Tax rate code	Used in the Italian Purchase VAT Register definition program to recognize self invoices
Italy	EMEA_VAT_REPORTING_TYPE Nontaxable	Tax rate code	Used in the Italian Purchase VAT Register definition program to recognize nontaxable invoices
Italy	EMEA_VAT_REPORTING_TYPE Exempt	Tax rate code	Used to identify invoice lines with exemption limit groups
Spain	EMEA_VAT_REPORTING_TYPE Services	Tax rate code	Used for VAT reporting