Considerations for Setting Up Tax Registrations

You must set up a separate tax registration to represent each distinct registration requirement for a first party. Optionally, set up tax registrations for your customers and suppliers, as necessary, to support specific tax regulations or reporting requirements.

Oracle Fusion Tax uses tax registrations in tax determination and tax reporting.

Tax Registration Options

Setting options at the tax registration level can override options set at different levels. The following table describes selective options available and the impact of selecting these options:

Option	Description	Impact
Tax Regime	Enter the tax regime for this registration. Optionally, enter the tax and tax jurisdiction for this registration.	The tax regime and optionally, tax and tax jurisdiction are used to determine the correct tax registration at transaction and reporting time.
Registration Type	Select a classification of the tax registration, if applicable.	The predefined tax registration types are specified by the tax authority. The tax registration types are for reporting purposes only.
Registration Number	Enter the company tax registration number assigned by the tax authority. If you set the tax regime option to use the legal registration number as the tax registration number, then select the registration number from the legal registration numbers in the list of values. If you set the Allow duplicate tax registration numbers option for the tax, then multiple parties and party sites can use the same tax registration number for this tax.	Where applicable, Oracle Fusion Tax validates the number according to tax authority validation rules.
Registration Status	Enter the party's tax registration status. Oracle Fusion Tax provides these predefined registration statuses: Agent: The party acts as a withholding agent for the tax authority for the applicable tax. Registered: The party is registered for the applicable tax. Not registered: The party isn't registered for the applicable tax.	Use the tax registration status as a determining factor in tax rules.
Source	Identify if this party is: Explicit: The party is registered with the local tax authority and has a tax registration number. In this case, you know that the party is registered and the details including the tax registration number. Implicit: The party isn't formally registered with the tax authority, but the party is considered to meet one or more requirements for reporting taxes because of the level of business conducted. In this case, you determine that the party is registered but you don't know the tax registration number.	If the source is Explicit the tax registration number is required. If the source is Implicit the tax registration number isn't required.
Rounding Rule	The rule that defines how the rounding must be performed on a value involved in a taxable transaction. For example, up to the next highest value, down to the next lowest value, or nearest.	At transaction time, the values set at the tax registration level override the values set at the party tax profile level.
Set as self-assessment (reverse charge)	Set to automatically self-assess taxes on procure-to-pay transactions. A self-assessed tax is a tax calculated and remitted for a transaction, where tax wasn't levied by the supplier but is deemed as due and therefore, must be paid by the purchaser.	You can set the self-assessment option at the tax profile level to default to the tax registrations that you create for this party. You can also set it at the tax registration level or on an individual tax line. Oracle Fusion Tax applies self-assessment to Payable invoices received by the first party according to the tax registration setting. The specific tax registration record is derived either from the Determine Tax Registration rules or from the default tax registration.
Set Invoice Values as Tax Inclusive	Select if this party intends to send or receive invoices with invoice line amount inclusive of the tax amount.	At transaction time, the values set at the tax registration level override the values set at the party tax profile level. In addition, this option at the tax registration level overrides the tax inclusive handling setting at the tax level, but not at the tax rate level.
Collecting Tax Authority and Reporting Tax Authority	Enter the name of the tax authorities for: Collecting Tax Authority: The tax authority responsible for managing the administration of tax remittances. Reporting Tax Authority: The tax authority responsible for receiving and processing all company transaction tax reports.	If defined, the reporting and collecting tax authorities appear as defaults from the tax jurisdiction associated with this registration. If necessary, enter or update these fields with tax authorities specific to this tax registration.