Calculate VAT

This page is accessed via

• Financials > Payment Invoice Management > Payment Invoice > Actions
• Financials > Billing Management > Billing > Actions

Use this action to execute the calculation of European VAT (value added tax) for invoices and bills. European VAT varies depending on the European country that goods are moving in and out of.

Note: Use the Provincial check box in VAT Code only to calculate tax for provinces. This functionality is designed for a specific case where VAT rate is calculated based on province in Spain. As per Spain regulations, different VAT rates vary for provinces within the same country. For example, Canary Islands, a province in Spain has a different VAT rate than mainland Spain. The province code and country code is pulled from the VAT Country Source value i.e., customer, order, service provider, or shipment. For example, if the VAT Country Source value is Service Provider then the country code and province code of service provider is taken and the VAT rate for this combination is applied finally. For more details, see Configuring European VAT.

The following parameters affect how VAT is calculated: CALCULATE VAT ON VOUCHER, VOUCHER VAT TAX TYPE.

To calculate European VAT, you must have the VAT CONFIGURATION ID parameter pointing to a valid VAT Configuration ID.

When the action is run, Oracle Transportation Management runs several scenarios. The VAT outcome is determined, which indicates the VAT Code and VAT Country source. Then, Oracle Transportation Management checks the customer's VAT Region by looking at the Customer Involved Party Qualifier field. If the VAT registration is designated as the Primary Registration, the VAT codes's rate for the determined country is used. If it is not a primary registration, the Foreign VAT Code Override is used. In this case, VAT processing uses the Foreign VAT Code and its rate for the determined country. If a Foreign VAT Code Override does not exist, but the registration is not primary, the default code is used as if it were primary.

Based on the VAT Outcome from those scenarios, the correct European VAT is added, as long as that VAT Outcome is assigned to the VAT Configuration assigned in the parameter.

Refer to the properties:

• glog.business.invoice.line.vat.round
• glog.business.vatAggr.vatcode.costFractionalFlags
• glog.business.vatAggr.invoiceOrVoucher.costFractionalFlags