Example of Setting Up Tax Configuration Options
This example demonstrates how you set up the appropriate tax configuration options for your company that has three regional centers.
These centers are responsible for tax setup and maintenance among other corporate activities. Each of these regional corporate centers is associated with a first-party legal entity and business unit.
Your company has its regional centers in these locations:
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North America (NAM), based in Redwood City, California, US
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Asian and Pacific (APAC), based in Melbourne, Australia
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Europe, Middle East, and Africa (EMEA), based in London, UK
Each country has a single first-party legal entity with a single business unit. These are the only exceptions to this rule:
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Countries with the regional corporate centers have a first-party legal entity and business unit for each corporate center.
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Sales, marketing, and manufacturing organization have a first-party legal entity and business unit.
Create tax regimes for each country and the appropriate tax configuration options.
Prerequisites
You must set up some values to create the appropriate tax configurations. These are the values you require:
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Set up the legal entities for these countries:
First-Party Legal Entity
Country
EMEA LE
UK
GB LE
UK
FR LE
FR
DE LE
DE
APAC LE
AU
AU LE
AU
SI LE
SI
NZ LE
NZ
NAM LE
US
US LE
US
CA LE
CA
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The sales, marketing, and manufacturing organization's business unit uses the tax configuration of the legal entity.
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Set up the relevant tax regimes for each country's tax as shown here:
Region
Country
Tax Regime
Tax
EMEA
United Kingdom
GB VAT
GB VAT
EMEA
France
FR VAT
FR VAT
EMEA
Germany
DE VAT
DE VAT
APAC
Australia
AU GST
AU GST
APAC
Singapore
SI VAT
SI VAT
APAC
New Zealand
NZ VAT
NZ VAT
NAM
United States
US SALES TAX
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US STATE SALES TAX
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US COUNTY SALES TAX
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US CITY SALES TAX
NAM
Canada
CA HST and GST
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CA HST
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CA GST
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Setting Up Tax Configuration Options
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On the Create Legal Entity Tax Profile page, select EMEA LE in the Legal Entity field. In the Configuration Options tab enter:
Field
Value
Tax Regime Code
GB VAT
Configuration for Taxes and Rules
Party-specific configuration
Configuration for Product Exceptions
Party-specific configuration
Parent First-Party Organization
Blank
Effective Start Date
01-Jan-01
Click Save and Create Another.
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Select GB LE in the Legal Entity field. In the Configuration Options tab enter:
Field
Value
Tax Regime Code
GB VAT
Configuration for Taxes and Rules
Parent first-party with party overrides
Configuration for Product Exceptions
Parent first-party organization
Parent First-Party Organization
EMEA LE
Effective Start Date
01-Jan-01
Click Save and Create Another.
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Select FR LE in the Legal Entity field. In the Configuration Options tab enter:
Field
Value
Tax Regime Code
FR VAT
Configuration for Taxes and Rules
Parent first-party with party overrides
Configuration for Product Exceptions
Parent first-party organization
Parent First-Party Organization
EMEA LE
Effective Start Date
01-Jan-01
Click Save and Create Another.
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Select DE LE in the Legal Entity field. In the Configuration Options tab enter:
Field
Value
Tax Regime Code
DE VAT
Configuration for Taxes and Rules
Parent first party with party overrides
Configuration for Product Exceptions
Parent first-party organization
Parent First-Party Organization
EMEA LE
Effective Start Date
01-Jan-01
Click Save and Create Another.
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Select APAC LE in the Legal Entity field. In the Configuration Options tab enter:
Field
Value
Tax Regime Code
AU GST
Configuration for Taxes and Rules
Party-specific configuration
Configuration for Product Exceptions
Party-specific configuration
Parent First-Party Organization
Blank
Effective Start Date
01-Jan-01
Click Save and Create Another.
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Select AU LE in the Legal Entity field. In the Configuration Options tab enter:
Field
Value
Tax Regime Code
AU GST
Configuration for Taxes and Rules
Parent first party with party overrides
Configuration for Product Exceptions
Parent first-party organization
Parent First-Party Organization
APAC LE
Effective Start Date
01-Jan-01
Click Save and Create Another.
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Select SI LE in the Legal Entity field. In the Configuration Options tab enter:
Field
Value
Tax Regime Code
SI VAT
Configuration for Taxes and Rules
Parent first party with party overrides
Configuration for Product Exceptions
Parent first-party organization
Parent First-Party Organization
APAC LE
Effective Start Date
01-Jan-01
Click Save and Create Another.
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Select NZ LE in the Legal Entity field. In the Configuration Options tab enter:
Field
Value
Tax Regime Code
NZ VAT
Configuration for Taxes and Rules
Parent first party with party overrides
Configuration for Product Exceptions
Parent first-party organization
Parent First-Party Organization
APAC LE
Effective Start Date
01-Jan-01
Click Save and Create Another.
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Select NAM LE in the Legal Entity field. In the Configuration Options tab enter:
Field
Value
Tax Regime Code
US SALES TAX
Configuration for Taxes and Rules
Party-specific configuration
Configuration for Product Exceptions
Party-specific configuration
Parent First-Party Organization
Blank
Effective Start Date
01-Jan-01
Click Save and Create Another.
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Select US LE in the Legal Entity field. In the Configuration Options tab enter:
Field
Value
Tax Regime Code
US SALES TAX
Configuration for Taxes and Rules
Parent first party with party overrides
Configuration for Product Exceptions
Parent first-party organization
Parent First-Party Organization
NAM LE
Effective Start Date
01-Jan-01
Click Save and Create Another.
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Select CA LE in the Legal Entity field. In the Configuration Options tab enter:
Field
Value
Tax Regime Code
CA GST and PST
Configuration for Taxes and Rules
Parent first party with party overrides
Configuration for Product Exceptions
Parent first-party organization
Parent First-Party Organization
NAM LE
Effective Start Date
01-Jan-01
Click Save and Close.