User’s Guide
Vertex® Indirect Tax O Series 6.0 Tax Assist Setup Vertex® Indirect Tax Reporting & Analysis 3.0 Value Added Tax Returns Reports Tax Code Setup April 2012
Copyright and legal notices Copyright © 2013 Vertex Global Tax Solutions Ireland Holdings. All rights reserved. This documentation may not be reproduced, displayed, distributed, modified, posted, republished, or transmitted in any form or by any means, without the prior written consent of Vertex Global Tax Solutions Ireland Holdings or its affiliates (collectively, “Vertex”), except as otherwise specified in a valid, current Vertex license agreement or allowed by law. Disclaimers The information contained in this documentation is designed to help users in regard to the subject matter covered. Some of it may be based upon interpretations of federal, state, foreign and other tax laws and regulations. Each entity is responsible for making its own determination of how such laws and regulations apply to its own circumstances and for evaluating the capabilities of, and all data and results generated by, any product that is described in this documentation. Vertex is not engaged in providing legal, tax or accounting advice or services and the information contained in this documentation or in any product cannot replace the advice of competent legal counsel. Further, the information in this documentation is subject to change without notice and is not warranted to be error‐free. If you find any errors, please report them to us in writing. Trademarks and Service Marks The trademarks, logos and service marks ("marks") displayed in this documentation are the property of Vertex or third parties. Users are not permitted to use these marks without the prior written consent of Vertex or the third party that may own the mark. Third Party Products Copies of the licenses for some third‐party products included with a Vertex product may be found in or with the installation materials for that product.
Contents Preface .................................................................................................................... 5 Contacting Vertex ..................................................................................................................... 5 Vertex corporate offices ...................................................................................................... 5 Vertex services and products............................................................................................... 6 About Vertex O Series .............................................................................................................. 7 Vertex Reporting and Analysis ........................................................................................... 7 Vertex Indirect Tax O Series ............................................................................................... 7 Finding the information you need in Vertex Reporting & Analysis ......................................... 8 Finding the information you need in Vertex Indirect Tax O Series .......................................... 9 About this guide ...................................................................................................................... 11 Purpose .............................................................................................................................. 11 Scope ................................................................................................................................. 11 Audience............................................................................................................................ 11 Organization ...................................................................................................................... 11 Procedure formatting ......................................................................................................... 12
Chapter 1 Overview .............................................................................................. 13 Before you begin ..................................................................................................................... 13 Tax Codes ................................................................................................................................ 13 Tax code example.............................................................................................................. 14 Tax Code structure ............................................................................................................ 14 O Series setup for VRA VAT returns ..................................................................................... 17 Tax Assist lookup tables ................................................................................................... 18 Tax Assist rules ................................................................................................................. 19 Transaction Tester ............................................................................................................. 19
Chapter 2 Setup for Supplies Tax Codes ............................................................ 20 Supplies tax codes ................................................................................................................... 21 Creating the TC Supplies lookup table ................................................................................... 24 Creating the Supplies Set Invoice Text lookup table .............................................................. 26 Creating the Supplies Filtering Lookup Table ........................................................................ 27 Supplies tax code Tax Assist rules .......................................................................................... 28 Setting up the Tax Code Filter Assignment - Supplies rule .............................................. 29 Setting up the No Tax Result Code - Supplies rule........................................................... 35 Setting up the Export OTS (Outside the Scope) - Supplies rule ....................................... 39 Setting up the Tax Code NULL - Supplies rule ................................................................ 44 Order of Supplies tax code rules ....................................................................................... 47 Testing the Tax Assist rules and lookup tables for Supplies................................................... 47 Example 1: Testing tax code OGSTC Domestic Good at Standard Rate ......................... 48 Example 2: Testing tax code OGZRIZ Intra-EU Good at Zero Rate................................ 49 April 2012
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Contents
Chapter 3 Setup for Procurement Tax Codes .................................................... 50 Procurement tax codes ............................................................................................................ 51 Creating the Procurement Tax Codes lookup table................................................................. 55 Creating the Procurement Filtering lookup table .................................................................... 56 Procurement tax code Tax Assist rules ................................................................................... 57 Setting up the Tax Code Filter Assignment - Procurement rule ....................................... 58 Setting up the No Tax Result Code - Procurement rule .................................................... 65 Setting up the Import Tax Code rule ................................................................................. 69 Setting up the Input Tax Code rule ................................................................................... 73 Setting up the Tax Code Null - Procurement rule ............................................................. 77 Order of Procurement tax code rules................................................................................. 80 Testing the Tax Assist rules and lookup tables - Procurement ............................................... 80 Example 1: Testing tax code BGSTIR Intra-EU Good, Reverse Charge ......................... 81 Example 2: Testing tax code IXXXX, Domestic Input .................................................... 82
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Preface This preface contains the following information: • • •
Contacting Vertex®, which includes how to contact us about services and products About Vertex® Indirect Tax Reporting & Analysis products, which includes the list of guides that Vertex provides About this guide, which includes its purpose, scope, audience, and date and procedure formatting
Contacting Vertex Founded in 1978, Vertex is the trusted leader in corporate tax technology excellence. Contact Vertex for help streamlining your tax processes.
Vertex corporate offices Vertex is a privately held company with offices in these locations: Global headquarters 1041 Old Cassatt Road Berwyn, PA 19312 USA Phone: 610.640.4200 Toll-free (United States only): 800.355.3500 Fax: 610.640.2761 www.vertexinc.com/
European headquarters Vertex Global Tax Solutions, LTD 1 Furzeground Way, Stockley Park Uxbridge, UB11 1EZ United Kingdom Phone: +44 (0)20 8622 3053 Fax:+44 (0)20 8622 3200
Sarasota office
Tax Returns processing center
101 Arthur Andersen Parkway Suite 340 Sarasota, FL 34232 USA Phone: 866.829.8324
April 2012
40 Shuman Blvd. Suite 218 Naperville, IL 60563 USA Phone: 630.328.2600
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Preface Contacting Vertex
Vertex services and products The following table provides contact information for Vertex services and products: For assistance with...
Contact...
Technical questions about products Vertex Product Support you have licensed Phone: 800-281-1900 (Monday through Friday, 8:15 A.M. to 8:00 P.M. United States Eastern Time) Fax: 610-640-1207 Web: https://my.vertexinc.com/ Up-to-the-minute information Vertex Critical Changes page about tax rate, tax rule, and Web: jurisdiction changes in Vertex data https://my.vertexinc.com/category/type/immediate-attention Questions about your licensing agreement, license renewal, invoicing arrangements, or obtaining a license file for a product you have purchased
Vertex Account Services Phone: 800-355-3500 or 610-640-4200 Fax: 610-640-5892 Email:
[email protected] Web: www.vertexinc.com/ContactUs/web-inquiry-form.asp
Purchasing Vertex services and products
Vertex Global Headquarters Phone: 800-355-3500 or 610-640-4200 Fax: 610-640-5892 Web: www.vertexinc.com/ContactUs/web-inquiry-form.asp Vertex European Headquarters Vertex Global Tax Solutions Ltd. Phone: +44 (0) 20 8622 3053 Fax: +44 (0) 20 8622 3200
Regional training classes, Web-based training classes, or on-site training at your facility
Vertex Training Phone: 800-281-1900 (Monday through Friday, 8:15 A.M. to 8:00 P.M. United States Eastern Time) option #2 Fax: 610-640-5892 Email:
[email protected] Web: www.vertexinc.com/ContactUs/web-inquiry-form.asp
Questions or feedback about this documentation
Vertex Information Development Email:
[email protected]
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Preface About Vertex O Series
About Vertex O Series The Vertex O Series platform provides an advanced architecture for integrating a broad range of tax compliance features into a single, seamless application suite. By using object-oriented techniques and Web technologies, such as XML, HTML, SOAP, and Java, Vertex O Series efficiently combines functionality for data maintenance, tax calculation, system administration, and external interface to a financial host system that can be shared by multiple applications. Vertex O Series also provides easy, flexible deployment in a variety of operating environments. This section describes products and features that can be licensed and deployed on the O Series platform, plus additional Vertex products that can be used with Vertex O Series.
Vertex Reporting and Analysis Vertex® Indirect Tax Reporting & Analysis (VRA) is a Web-based reporting and analytics application that works with Cognos technology to turn your transaction and taxability data into valuable information. VRA offers additional flexibility over the standard reports provided within Your Vertex product, enabling you to meet your tax reporting needs by creating custom tables, pivots, charts, and reports that contain the information you need in the format you require.
Vertex Indirect Tax O Series Vertex® Indirect Tax O Series® (Vertex O Series) integrates with your enterprise financial, accounting, ERP, or CRM host system to calculate tax automatically on individual business transactions. Using Vertex O Series can significantly reduce the complexities and expense of tax compliance processes for your enterprise. To help you achieve and maintain compliance, Vertex O Series calculates tax based on Vertex-supplied research and your customizations on jurisdiction rates, exceptions, and exemptions. Vertex O Series also supports precise taxing jurisdiction identification and special situations that include tiered tax, maximum basis tax, maximum tax amount tax, complex rounding rules, and VAT import reverse charge.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Preface Finding the information you need in Vertex Reporting & Analysis
Finding the information you need in Vertex Reporting & Analysis Vertex provides the following documentation to help you set up and use your Vertex Reporting & Analysis and Cognos software: For this task
Use this documentation
Installing Vertex software • •
Vertex O Series Installation Guide
Install and deploy the Vertex O Series platform. Load Vertex O Series products.
Installing Cognos software Install and deploy Cognos.
Cognos Installation and Configuration Guide Cognos Administration and Security Guide
Deploying Vertex Reporting & Analysis (VRA) Vertex Reporting & Analysis Administrator Guide Deploy VRA. Learning more about Cognos Find more information about using Cognos Query Studio and Report Viewer.
Cognos Installation and Configuration Guide Procedures are in the Cognos Query Studio User Guide and Cognos Connection User Guide
Concept and process information is in the Managing O Series Data Find more information and best practices for managing Vertex Indirect Tax O Series Administration Guide. O Series data. Procedures are in the Data Management section of Vertex Central Help. Cognos Query Studio User Guide Creating reports and ad hoc queries Analyze database information and create a wide range of reports. Creating reports for Value Added Tax returns Vertex Reporting & Analysis Value Added Helps you meet your reporting requirements for VAT Tax Returns Reports User's Guide returns, Intrastat, and the European Commission Sales List. Setting up Tax Assist rules and lookup tables Vertex Indirect Tax O Series Tax Assist Setup Guide for tax codes Helps you set up Tax Assist rules and lookup tables for tax codes needed for Value Added Tax Returns reports.
Note: The latest product documentation updates are available online on myVertex (https://my.vertexinc.com/). You can also use myVertex to access the online Knowledge Center, submit a Service Request, or visit the Forums where you can communicate with other Vertex users about tips, tricks, and best practices.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Preface Finding the information you need in Vertex Indirect Tax O Series
Finding the information you need in Vertex Indirect Tax O Series To help you install your Vertex O Series software, integrate O Series with your financial host system, and use Vertex Central (the user interface) to customize O Series to your business, Vertex provides the following documentation: For this task
Use this documentation
Planning your O Series implementation • • • •
Planning Guide
Review the implementation process for both technology and tax compliance. Plan for hardware, software, communications, and data requirements. Identify implementation team members needed. Review Vertex resources available to you.
Installing the software • •
Installation Guide
Install and deploy the Vertex O Series platform. Load Vertex O Series.
Integrating with O Series using an XML interface Use XML messages to integrate Vertex O Series and your host system.
XML Integration Guide
Integrating with O Series using a Java Application Programmer's Interface Use Java classes to integrate Vertex O Series and your host system.
Java Integration Guide
Building an interface between Vertex Indirect Tax for Retail Vertex Indirect Tax for Retail and Point-of-Sale (POS) locations using Retail Tax Extract Retail Tax Extract Integration Guide Data Model Use the Retail Tax Extract Data Model to integrate Vertex Indirect Tax for Retail with your POS locations. Searching and retrieving tax data stored in Vertex O Series Vertex Central Web Services Integration Guide databases Use a Vertex Central Web service to create XML messages used in a calling application – such as an ERP or CRM system – to find and retrieve tax data stored in Vertex O Series databases. Processing multiple tax calculations using the Batch Client Interface Use the Batch Client Interface to process groups of transactions without writing an interface between Vertex O Series and your host system.
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Batch Client Interface Integration Guide
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Preface Finding the information you need in Vertex Indirect Tax O Series
For this task
Use this documentation
Configuring Vertex O Series • • • •
Concept and process information is in the Administration Guide. Procedures are in the Administration section of Vertex Central Help and the User's Guide. Concept and detailed information about the Vertex configuration file and specific parameters are in the Configuration File Parameters Reference Guide.
Define user access and roles. Manage data. Oversee the Reporting database. Manage the Vertex configuration file.
Tax Data File Formats Handbook Importing and exporting data Use required data file formats to move data between Vertex O Series and your host system. Setting up taxability information • • • •
Define your organization's taxpayer structure. Define registration requirements. Define customers, vendors, taxability drivers, and certificates. Define taxability categories and tax rules.
Maintaining the system • • •
Vertex Central Help User's Guide
Perform monthly updates. Manage customized and Tax Journal data. Export data for returns.
Generating reports • • •
Vertex Central Help User's Guide
Vertex Central Help User's Guide
Create reports. Schedule reports. Publish files.
Vertex Lease Tax O Series Planning Guide Setting up taxability for leasing and rentals Plan your tax compliance system for short- and long-term equipment This guide is on the Lease Tax CD-ROM. and vehicle leasing customers. Installing and configuring Vertex Indirect Tax for Retail • • • •
Install the software. Manage data. Manage the configuration parameters. Review the External System Update XML schema.
Vertex Indirect Tax for Retail Installation and Administration Guide
Note: The latest product documentation updates are available online on myVertex (https://my.vertexinc.com/). You can also use myVertex to access the online Knowledge Center, submit a Service Request, or visit the Forums where you can communicate with other Vertex users about tips, tricks, and best practices.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Preface About this guide
About this guide This guide applies to Vertex® Indirect Tax Reporting & Analysis and Vertex® Indirect Tax O Series®.
Purpose This guide leads you through the process of using the Tax Assist feature of Vertex O Series to assign tax codes to Value Added Tax (VAT) transactions. The tax codes assist in populating VAT returns.
Scope This guide provides instructions for the preliminary setup in O Series required for VRA (Vertex Reporting & Analysis) VAT (Value Added Tax) returns. The guide describes the following: • • •
The tax codes used for VAT returns How to create Tax Assist lookup tables and then import the Vertex-supplied comma-separated values (CSV) files containing the tax codes into the lookup tables How to create Tax Assist rules to assign tax codes to VAT transactions, based on the information in the lookup tables
Audience This guide is intended for tax professionals and system implementers who need to create reports and queries for Value Added Tax returns reporting. To use this documentation, knowledge of the Tax Assist feature in Vertex O Series is helpful. For more information about Tax Assist, refer to the Tax Assist section of the Vertex Central Help.
Organization This guide contains the following chapters: Chapter 1. Overview
This chapter describes how Vertex uses tax codes. It also provides an overview of the process you will need to follow to configure your tax codes for VRA VAT returns.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Preface About this guide
Chapter 2. Setup for Supplies Tax Codes
This chapter describes the Supplies tax codes. It also provides procedures to configure Tax Assist lookup tables and rules for VRA VAT returns of Supplies transactions. Chapter 3. Setup for Procurement Tax Codes
This chapter describes the Procurement tax codes. It also provides procedures to configure Tax Assist lookup tables and rules for VRA VAT returns for Procurement transactions.
Procedure formatting Vertex documentation follows standard conventions in its descriptions of step-by-step instructions. These conventions make it easy to see what actions you must take and what you see on the screen.
Window and dialog box elements Selections you make from window elements, such as cascading menus, options, or dialog box elements, such as check boxes, keys, or command buttons are emphasized with this bold type. For example: • •
Click OK. Press Enter.
Codes, syntax, and commands Information, such as code, syntax, or commands, you enter at a prompt is emphasized with this monospace type. Variable text you enter as part of commands is emphasized with this monospace type. For example: load_taxgis_database.sql username password instance_name
where: database
is your script
username
is the username for the database
password
is the password for the database
instance_name
is the name of the database instance
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italic
Chapter 1
Overview You can use Vertex® Indirect Tax Reporting & Analysis to produce Value Added Tax (VAT) returns reports. To do this, you need to first configure tax codes in Vertex® Indirect Tax O Series®. You use the O Series Tax Assist feature to configure the tax codes. This chapter describes how Vertex uses tax codes. It also provides an overview of the procedures you will use to configure the tax codes. For more information on the Tax Assist feature in Vertex O Series, refer to Vertex Central Help.
In this chapter Before you begin ........................................................................... 13 Tax Codes ...................................................................................... 13 O Series setup for VRA VAT returns ........................................... 17
Before you begin Before you begin your tax code setup in Vertex O Series Tax Assist, you must have a full Vertex O Series deployment successfully implemented. You need to launch O Series and navigate to the Tax Assist feature. In addition, make sure you have access to the following CSV files: • TC_Supplies.csv • TC_Procurement.csv These files are included in the product kit CD. They are also available online in the myVertex customer portal (https://my.vertexinc.com/) under Documentation.
Tax Codes Tax codes are Vertex-supplied codes that can be assigned to tax results after tax calculation. These codes assist in populating returns. Note: These Vertex-defined tax codes are different from the ERP (Enterprise Resource Planning) tax codes. Be aware of this distinction as you set up Tax Assist rules and lookup tables for tax codes.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 1. Overview Tax Codes
Tax code example The following graphic describes each component of a tax code:
In this example, the tax code indicates the following: • • • •
It is an output. It is a good. It is standard-rated. It is intra-country.
Tax Code structure Vertex-defined tax codes are composed of the following four components: Field Name
Character Position
Input/Output Type
1
Is Service Indicator
2
Rate Classification
3-4
Output Notices
5 to the end. It could be up to 3 characters.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 1. Overview Tax Codes
Input/Output type This field indicates whether the tax is Input VAT, Output VAT, both Input and Output VAT, or Import VAT according to the transaction perspective to allow for reverse charges or self-accrual. The Input/Output type tax code values are listed in the following table: Name
ID
Tax Code Value
Input
1
I
Output
2
O
Input and Output
3
B
Import
4
M
Is Service indicator The Is Service indicator specifies whether a tax involves a good or a service. The following table lists the values for the Is Service indicator component of the tax code: Name
ID
Tax Code Value
NULL
NULL
G
Good
0
G
Service
1
S
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 1. Overview Tax Codes
Rate Classification The Rate Classification is a Vertex-defined classification of the applicable tax rule for VAT returns filing purposes. The Rate Classification tax code values are listed in the following table: Name
ID
Tax Code Value
N/A
NULL
XX
Luxury Rate
1
LU
Standard Rate
2
ST
Reduced Rate 1
3
R1
Reduced Rate 2
4
R2
Reduced Rate 3
5
R3
Reduced Rate 4
6
R4
Reduced Rate 5
7
R5
Zero Rate
8
ZR
Exempt
9
EM
Outside the Scope
10
OS
User-defined
11
UD
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 1. Overview O Series setup for VRA VAT returns
Output Notices The Output Notice tax code values are listed in the following table: Name
ID
Tax Code Value
Export
1
E
Intra EU
2
I
Zero Rate
3
Z
Reverse Charge
4
R
Indeterminate Tax
5
(none)
Registration Group
6
(none)
Triangulation
7
T
Net Exporter
8
(none)
Import VAT
9
M
Out of Scope at PO
10
P
Out of Scope at AO
11
A
Suspended VAT
12
S
Call Off Simplification
13
(none)
Consignment Simplification
14
(none)
VAT Liability may exist at AO
15
(none)
VAT Liability may exist at PO
16
(none)
VAT Liability may exist at AD
17
(none)
VAT Liability may exist at D
18
(none)
Self-Billing Indicator
19
(none)
ESS Indicator
20
(none)
Intra-Country
21
C
Differential VAT
22
(none)
VAT Withholding
23
(none)
O Series setup for VRA VAT returns Setting up O Series for VRA VAT Returns is a three-phase process involving the following: 1. Creating Tax Assist lookup tables, and adding records to the tables or importing a Vertex-supplied file to create the table records April 2012
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 1. Overview O Series setup for VRA VAT returns
2. Creating Tax Assist rules 3. Testing the Tax Assist rules in O Series Transaction Tester The topics in this section describe Tax Assist lookup tables and rules, as well as Transaction Tester. This section is followed by chapters that give detailed procedures for performing the setup for Supplies transactions and for Procurement transactions.
Tax Assist lookup tables Tax Assist lookup tables enable you to supply values to be used in Tax Assist rules. These tables can be managed externally and imported into Tax Assist. A lookup table is an optional component of Tax Assist. It is a table of data that a Tax Assist rule can use to look up values. You can use a lookup table to consolidate large numbers of records. The rows, or records, in the lookup table return a single value, to be used in a Tax Assist rule when corresponding pieces of data, or parameters, are present in a transaction passed from your host system. Note: A lookup table can have up to five parameters. When you set up a Tax Assist rule to reference a table, you are prompted to specify the line item attribute to be matched to each parameter. Using a lookup table enables you to: •
Set up a single Tax Assist rule instead of setting up a separate one for each line of data in the lookup table. • Easily add more lines of data to the table as needed, without having to modify the Tax Assist rule or set up a new one. • Import data that is maintained in a table or spreadsheet in another software package (for example, Microsoft® Excel). If the table subsequently changes in the original software package, you can simply re-import the data into Tax Assist. Note: In addition to the Vertex-supplied tax codes you will use to create records in the lookup tables, you may add user-defined records and tax codes to help populate unique return fields.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 1. Overview O Series setup for VRA VAT returns
Tax Assist rules You will create Tax Assist post-calculation rules to set up the Supplies and Procurement tax codes. Tax Assist post-calculation rules append additional information to tax calculation results before passing the data back to your host system or posting it to the Tax Journal. You do this by setting values for the tax.taxcode input fields. The specified tax code value is appended to the calculation results for a specific tax or taxes (depending on how you set up the Tax Assist rule), rather than being appended at the line item level.
Transaction Tester You use Transaction Tester to ensure you are getting the correct tax calculation results. It is a window to the Vertex Calculation Engine. You can replicate transaction requests as sent from your host system and then review the results from the Calculation Engine. Using Transaction Tester to test various transactions will help you determine whether your Tax Assist rules and lookup tables are operating as you intended.
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Chapter 2
Setup for Supplies Tax Codes This chapter describes the Supplies tax codes. It also provides procedures to configure the O Series Tax Assist lookup tables and rules for VRA VAT returns for Supplies transactions. The procedures in this chapter tell you how to: • Create the lookup tables for Supplies tax codes • Create the Tax Assist rules that reference the lookup tables • Test the rules in Transaction Tester You need to navigate the Tax Assist feature to set up the tax code lookup tables. For more information on Tax Assist, refer to Vertex Central Help.
In this chapter Supplies tax codes ......................................................................... 21 Creating the TC Supplies lookup table ......................................... 24 Creating the Supplies Set Invoice Text lookup table .................... 25 Creating the Supplies Filtering Lookup Table .............................. 27 Supplies tax code Tax Assist rules ................................................ 28 Testing the Tax Assist rules and lookup tables for Supplies......... 47
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax codes
Supplies tax codes The Supplies tax code values are listed in the following table: Tax Code
Input/Output
Is Service indicator
Rate Classification
Output Notice
OGEME
OUTPUT
FALSE
Exempt
|1|
OGEMC
OUTPUT
FALSE
Exempt
|21|
OGEMCM
OUTPUT
FALSE
Exempt
|21|9|
OGEMI
OUTPUT
FALSE
Exempt
|2|
OGLUE
OUTPUT
FALSE
Luxury Rate
|1|
OGLUC
OUTPUT
FALSE
Luxury Rate
|21|
OGLUCM
OUTPUT
FALSE
Luxury Rate
|21|9|
OGLUI
OUTPUT
FALSE
Luxury Rate
|2|
OGXXE
OUTPUT
FALSE
null
|1|
OGXXC
OUTPUT
FALSE
null
|21|
OGXXCM
OUTPUT
FALSE
null
|21|9|
OGXXI
OUTPUT
FALSE
null
|2|
OGOSE
OUTPUT
FALSE
Outside the Scope
|1|
OGOSC
OUTPUT
FALSE
Outside the Scope
|21|
OGOSI
OUTPUT
FALSE
Outside the Scope
|2|
OGR1E
OUTPUT
FALSE
Reduced Rate 1
|1|
OGR1C
OUTPUT
FALSE
Reduced Rate 1
|21|
OGR1CM
OUTPUT
FALSE
Reduced Rate 1
|21|9|
OGR1I
OUTPUT
FALSE
Reduced Rate 1
|2|
OGR2E
OUTPUT
FALSE
Reduced Rate 2
|1|
OGR2C
OUTPUT
FALSE
Reduced Rate 2
|21|
OGR2CM
OUTPUT
FALSE
Reduced Rate 2
|21|9|
OGR2I
OUTPUT
FALSE
Reduced Rate 2
|2|
OGR3E
OUTPUT
FALSE
Reduced Rate 3
|1|
OGR3C
OUTPUT
FALSE
Reduced Rate 3
|21|
OGR3CM
OUTPUT
FALSE
Reduced Rate 3
|21|9|
OGR3I
OUTPUT
FALSE
Reduced Rate 3
|2|
OGR4E
OUTPUT
FALSE
Reduced Rate 4
|1|
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax codes
Tax Code
Input/Output
Is Service indicator
Rate Classification
Output Notice
OGEME
OUTPUT
FALSE
Exempt
|1|
OGR4C
OUTPUT
FALSE
Reduced Rate 4
|21|
OGR4CM
OUTPUT
FALSE
Reduced Rate 4
|21|9|
OGR4I
OUTPUT
FALSE
Reduced Rate 4
|2|
OGR5E
OUTPUT
FALSE
Reduced Rate 5
|1|
OGR5C
OUTPUT
FALSE
Reduced Rate 5
|21|
OGR5CM
OUTPUT
FALSE
Reduced Rate 5
|21|9|
OGR5I
OUTPUT
FALSE
Reduced Rate 5
|2|
OGSTE
OUTPUT
FALSE
Standard Rate
|1|
OGSTC
OUTPUT
FALSE
Standard Rate
|21|
OGSTCM
OUTPUT
FALSE
Standard Rate
|21|9|
OGSTI
OUTPUT
FALSE
Standard Rate
|2|
OGUDE
OUTPUT
FALSE
User Defined
|1|
OGUDC
OUTPUT
FALSE
User Defined
|21|
OGUDCM
OUTPUT
FALSE
User Defined
|21|9|
OGUDI
OUTPUT
FALSE
User Defined
|2|
OGZRE
OUTPUT
FALSE
Zero Rate
|1|
OGZREZ
OUTPUT
FALSE
Zero Rate
|1|3|
OGZRC
OUTPUT
FALSE
Zero Rate
|21|
OGZRCM
OUTPUT
FALSE
Zero Rate
|21|9|
OGZRCRZ
OUTPUT
FALSE
Zero Rate
|21|4|3|
OGZRI
OUTPUT
FALSE
Zero Rate
|2|
OGZRIZ
OUTPUT
FALSE
Zero Rate
|2|3|
OGZRIZT
OUTPUT
FALSE
Zero Rate
|2|3|7|
OSEME
OUTPUT
TRUE
Exempt
|1|
OSEMC
OUTPUT
TRUE
Exempt
|21|
OSEMI
OUTPUT
TRUE
Exempt
|2|
OSEMX
OUTPUT
TRUE
Exempt
OSLUE
OUTPUT
TRUE
Luxury Rate
|1|
OSLUC
OUTPUT
TRUE
Luxury Rate
|21|
OSLUI
OUTPUT
TRUE
Luxury Rate
|2|
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax codes
Tax Code
Input/Output
Is Service indicator
Rate Classification
Output Notice
OGEME
OUTPUT
FALSE
Exempt
OSLUX
OUTPUT
TRUE
Luxury Rate
OSXXE
OUTPUT
TRUE
null
|1|
OSXXC
OUTPUT
TRUE
null
|21|
OSXXI
OUTPUT
TRUE
null
|2|
OSXXX
OUTPUT
TRUE
null
OSOSE
OUTPUT
TRUE
Outside the Scope
|1|
OSOSC
OUTPUT
TRUE
Outside the Scope
|21|
OSOSI
OUTPUT
TRUE
Outside the Scope
|2|
OSOSX
OUTPUT
TRUE
Outside the Scope
OSR1E
OUTPUT
TRUE
Reduced Rate 1
|1|
OSR1C
OUTPUT
TRUE
Reduced Rate 1
|21|
OSR1I
OUTPUT
TRUE
Reduced Rate 1
|2|
OSR1X
OUTPUT
TRUE
Reduced Rate 1
OSR2E
OUTPUT
TRUE
Reduced Rate 2
|1|
OSR2C
OUTPUT
TRUE
Reduced Rate 2
|21|
OSR2I
OUTPUT
TRUE
Reduced Rate 2
|2|
OSR2X
OUTPUT
TRUE
Reduced Rate 2
OSR3E
OUTPUT
TRUE
Reduced Rate 3
|1|
OSR3C
OUTPUT
TRUE
Reduced Rate 3
|21|
OSR3I
OUTPUT
TRUE
Reduced Rate 3
|2|
OSR3X
OUTPUT
TRUE
Reduced Rate 3
OSR4E
OUTPUT
TRUE
Reduced Rate 4
|1|
OSR4C
OUTPUT
TRUE
Reduced Rate 4
|21|
OSR4I
OUTPUT
TRUE
Reduced Rate 4
|2|
OSR4X
OUTPUT
TRUE
Reduced Rate 4
OSR5E
OUTPUT
TRUE
Reduced Rate 5
|1|
OSR5C
OUTPUT
TRUE
Reduced Rate 5
|21|
OSR5I
OUTPUT
TRUE
Reduced Rate 5
|2|
OSR5X
OUTPUT
TRUE
Reduced Rate 5
OSSTE
OUTPUT
TRUE
Standard Rate
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|1|
|1|
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Creating the TC Supplies lookup table
Tax Code
Input/Output
Is Service indicator
Rate Classification
Output Notice
OGEME
OUTPUT
FALSE
Exempt
|1|
OSSTC
OUTPUT
TRUE
Standard Rate
|21|
OSSTI
OUTPUT
TRUE
Standard Rate
|2|
OSSTX
OUTPUT
TRUE
Standard Rate
OSUDE
OUTPUT
TRUE
User Defined
|1|
OSUDC
OUTPUT
TRUE
User Defined
|21|
OSUDI
OUTPUT
TRUE
User Defined
|2|
OSUDX
OUTPUT
TRUE
User Defined
OSZRE
OUTPUT
TRUE
Zero Rate
|1|
OSZREZ
OUTPUT
TRUE
Zero Rate
|1|3|
OSZRC
OUTPUT
TRUE
Zero Rate
|21|
OSZRCRZ
OUTPUT
TRUE
Zero Rate
|21|4|3|
OSZRI
OUTPUT
TRUE
Zero Rate
|2|
OSZRIZ
OUTPUT
TRUE
Zero Rate
|2|3|
NSXXE
OUTPUT
TRUE
null
|1|10|
OSZRX
OUTPUT
TRUE
Zero Rate
Creating the TC Supplies lookup table The Supplies tax codes are provided in an ASCII, comma-separated file called TC_Supplies.csv that you will import into the TC Supplies Tax Assist lookup table. This file is available on the product CD and the myVertex customer portal. To create the TC
Supplies
Tax Assist lookup table, complete the following steps:
1. 2. 3. 4.
Log on to Vertex Indirect Tax O Series. Select Supplies from the Business Event drop-down field. From the Tax Setup menu, select Tax Assist > Lookup Tables. Click Add Lookup Table. The Edit Lookup Table window displays with the Properties tab selected. 5. Type TC Supplies for the Lookup Table Name. 6. Type Tax Code for the Result Name. 7. Select String from the Data Type drop-down list.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Creating the TC Supplies lookup table
8. Type the following parameter names: • Input/Output for Parameter 1 Name • Good/Service for Parameter 2 Name • Rate Classification for Parameter 3 Name • Output Notice for Parameter 4 Name 9. Set up the following options as needed: • Effective Date and End Date define the period for which the lookup table is valid. The system uses the As of date for Effective Date as default but does not specify an End Date. You can change the Effective Date or enter an End Date if needed. • Description provides a place where you can include additional text information about the lookup table. This can be helpful if you need to work with the table again as, for example, a reminder about the purpose of the table. Once you complete the lookup table properties, you are ready to import the records for your lookup table. 10. Click the Records tab. 11. Click Import (Replace)... from the Lookup Table window to import the TC_Supplies file provided by Vertex. 12. Navigate to the TC_Supplies.csv file and select it. 13. Click OK. The lookup table displays as in the following illustration:
14. Click Save Lookup.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Creating the Supplies Set Invoice Text lookup table
Creating the Supplies Set Invoice Text lookup table To create the Set Invoice Text-Supplies lookup table, complete the following steps: 1. From the Tax Setup menu, select Tax Assist > Lookup Tables. 2. Click Add Lookup Table. The Edit Lookup Table window displays with the Properties tab selected. 3. Type Set Invoice Text-Supplies for the Lookup Table Name. 4. Type Invoice Text for the Result Name. 5. Select String from the Data Type drop-down list. 6. Type OutputNoticeIDs for the Parameter 1 Name. 7. Set up the following options as needed: • Effective Date and End Date define the period for which the lookup table is valid. The system uses the As of date for Effective Date as default but does not specify an End Date. You can change the Effective Date or enter an End Date if needed. • Description provides a place where you can include additional text information about the lookup table. This can be helpful if you need to work with the table again as, for example, a reminder about the purpose of the table. 8. Click the Records tab. 9. Enter the values for Invoice Text and OutputNoticeIDs as pictured in the following figure:
10. Click Save Lookup.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Creating the Supplies Filtering Lookup Table
Creating the Supplies Filtering Lookup Table Create the Supplies Filtering Lookup Table to include only relevant output notices on your invoices. To create the Supplies Filtering Lookup Table, complete the following steps: 1. From the Tax Setup menu, select Tax Assist > Lookup Tables. 2. Click Add Lookup Table. The Edit Lookup Table window displays with the Properties tab selected. 3. Type Supplies Filtering Lookup Table for the Lookup Table Name. 4. Type ALLOutputNoticeIDs for the Result Name. 5. Select Array from the Data Type drop-down list. 6. Type OutputNoticeID for the Parameter 1 Name. 7. Set up the following options as needed: • Effective Date and End Date define the period for which the lookup table is valid. The system uses the As of date for Effective Date as default but does not specify an End Date. You can change the Effective Date or enter an End Date if needed. • Description provides a place where you can include additional text information about the lookup table. This can be helpful if you need to work with the table again as, for example, a reminder about the purpose of the table. 8. Click the Records tab.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
9. Enter the following values for ALLOutputNoticeIDs and OutputNoticeID as pictured in the following figure:
10. Click Save Lookup.
Supplies tax code Tax Assist rules You will be setting up the following rules for Supplies tax codes: • Tax Code Assignment - Supplies • No Tax Result Code - Supplies • Export OTS (Outside the Scope) - Supplies • Tax Code NULL - Supplies When you have finished setting up the rules, you will need to make sure that they are in the correct order.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
Setting up the Tax Code Filter Assignment - Supplies rule The Tax Code Assignment - Supplies rule assigns the tax code to the tax calculation results for Supplies transactions. It references the TC Supplies lookup table and the Supplies Filtering Lookup Table to make the final tax code assignment at the tax element level. To set up the Tax Code Assignment - Supplies rule, complete the following steps: 1. 2. 3. 4. 5. 6. 7.
From the Tax Setup menu, select Tax Assist. Select Post-Calculation from the submenu. Click Add Rule. Type Tax Code Assignment - Supplies for the Name. Select the Builder tab. In the IF field, leave the default setting of Always Applies. Drag the Taxability Drivers, Codes, Names, Types field into the SET field as in the following illustration:
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
8. Double-click the Taxability Drivers, Codes, Names, Types field and select tax.taxCode from the drop-down list as in the following illustration:
9. Select the Advanced tab.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
10. Drag LOOKUP() string into the TO field as in the following illustration:
11. Click the field and select TC Supplies from the list that displays as in the following illustration:
12. Select the Basic tab.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
13. Drag the Taxability Drivers, Codes, Names, Types field into the Input/Output field as in the following illustration:
14. Click the field and select tax.inputOutputType from the drop-down list that displays.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
15. Drag the True or False field into the Good/Service field as in the following illustration:
16. Click on the field and select tax.isService from the drop-down list that displays. 17. Drag the Taxability Drivers, Codes, Names, Types field into the Rate Classification field. 18. Click on the field and select tax.rateClassification from the drop-down list that displays. 19. Select the Advanced tab.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
20. Drag the LOOKUP() array table into the Output Notice field as in the following illustration:
21. The Supplies Filtering Lookup Table is now nested inside the TC Supplies lookup table. Drag the Output Notice ID Field into your rule's Output Notice ID field as in the following illustration:
22. Click Save Rule.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
The rule should look like the following figure:
Setting up the No Tax Result Code - Supplies rule O Series Transaction Tester may return a tax element in the XML response that provides information, but has no tax consequence and does not belong on a return. These elements have a tax result of "No Tax." For example, a "No-Registration liability may exist" message displays for a transaction in a jurisdiction where the seller is not registered. The seller may not have registration and not yet met threshold. Although this message is accurate, there is no return or reporting obligation for this tax element. These No Tax transactions should be assigned the NO TAX code and removed from reporting. The No Tax Result Code displays transactions that should not display on the return. To set up the No Tax Result Code - Supplies rule, complete the following steps: 1. 2. 3. 4. 5.
From the Tax Setup menu, select Tax Assist. Select Post-Calculation from the submenu. Click Add Rule. Type No Tax Result Code - Supplies for the Name. Select the Builder tab.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
6. Drag the = operator into the IF field as in the following illustration:
7. Drag the Taxability Drivers, Codes, Names, Types field into the left side of the IF field as in the following illustration:
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
8. Double-click the Taxability Drivers, Codes, Names, Types field and select tax.taxResultType from the drop-down list.
9. Drag the user-defined string value field (illustrated below) into the right side of the field.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
10. Click the field and select No Tax from the drop-down list that displays as in the following illustration:
11. Drag the Taxability Drivers, Codes, Names, Types field into the SET field. 12. Click the SET field and select tax.taxCode from the drop-down list that displays as in the following illustration:
13. Drag the user-defined string value field into the TO field. 14. Click the TO field and type NO TAX. 15. Click Save Rule.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
The rule should look like the following figure:
Setting up the Export OTS (Outside the Scope) - Supplies rule The Export OTS (Outside the Scope) - Supplies rule assigns tax code NSXXE to transactions outside the scope of VAT. This type of transaction has a tax result of No Tax, which is outside the scope of VAT. Some returns request this information on the return. This is the one exception to the No Tax transaction included on a return. To set up the Export OTS (Outside the Scope) - Supplies rule, complete the following steps: 1. 2. 3. 4. 5. 6.
From the Tax Setup menu, select Tax Assist. Select Post-Calculation from the submenu. Click Add Rule. Type Export OTS (Outside the Scope) - Supplies for the Name. Select the Builder tab. Drag the = operator into the IF field as in the following illustration:
7. Select the Advanced tab.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
8. Drag the Output Notice ID Field into the left side of the = operator as in the following illustration:
9. Drag the user-defined array value field into the right side of the = operator as in the following illustration:
10. Click the field and type |1|10|. 11. Select the Basic tab.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
12. Drag the Taxability Drivers, Codes, Names, Types field into the SET field as in the following illustration:
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
13. Click the SET field and select tax.taxCode from the drop-down list that displays as in the following illustration:
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
14. Drag the user-defined string value field into the TO field as in the following illustration:
15. Click the TO field and type NSXXE. 16. Click Save Rule.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
The rule should look like the following figure:
Setting up the Tax Code NULL - Supplies rule The Tax Code NULL - Supplies rule assigns a default code if none of the tax code conditions are satisfied. The purpose of this rule is to allow you to set up procedures to review all transactions in this category. Any transaction with this DEFAULT code should be reviewed. To set up the Tax Code NULL - Supplies rule, complete the following steps: 1. 2. 3. 4. 5.
From the Tax Setup menu, select Tax Assist. Select Post-Calculation from the submenu. Click Add Rule. Type Tax Code NULL - Supplies for the Name. Select the Builder tab.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
6. Drag the = operator into the IF field as in the following illustration:
7. Drag the Taxability Drivers, Codes, Names, Types field into the left side of the IF field as in the following illustration:
8. Click the right side of the expression in the IF field and type "". 9. Drag the Taxability Drivers, Codes, Names, Types field into the SET field.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Supplies tax code Tax Assist rules
10. Double-click the SET field and select tax.taxCode from the drop-down list as in the following illustration:
11. Drag the field into the TO field and type "DEFAULT". 12. Click Save Rule. 13. The rule should look like the following figure:
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Testing the Tax Assist rules and lookup tables for Supplies
Order of Supplies tax code rules The Tax Assist rules for Supplies tax codes must be in the same order as in the following illustration:
Testing the Tax Assist rules and lookup tables for Supplies After you have created your Tax Assist rules and lookup tables, you need to run some test transactions to verify that the tax codes are assigned correctly. The following examples display transaction results in the O Series Transaction Tester feature. For more information on Transaction Tester in O Series, refer to Vertex Central Help.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Testing the Tax Assist rules and lookup tables for Supplies
Example 1: Testing tax code OGSTC Domestic Good at Standard Rate This example is a domestic transaction in Belgium. Both the taxpayer and customer are registered in Belgium. The product is a standard-rated good. The transaction is an output and intra-country, and the extended price is 100.00. The tax code displays in the transaction results as in the following illustration:
In this example, the tax code indicates the following: • • • •
It is an output. It is a good. It is standard-rated. It is intra-country.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 2. Setup for Supplies Tax Codes Testing the Tax Assist rules and lookup tables for Supplies
Example 2: Testing tax code OGZRIZ Intra-EU Good at Zero Rate This example is an intra-EU good, zero-rated transaction. The physical origin is Austria, and the destination is Germany. The taxpayer is registered in Austria, and the customer is registered in Germany. Therefore, the seller may zero rate out of Austria, allowing the customer to self-accrue in Germany. The tax code displays in the transaction results as in the following illustration:
In this example, the tax code indicates the following: • • • •
It is an output. It is a good. It is zero-rated. It is intra-EU.
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Chapter 3
Setup for Procurement Tax Codes This chapter describes the Procurement tax codes. It also provides procedures to configure the O Series Tax Assist lookup tables and rules for VRA VAT returns for Procurement transactions. The procedures in this chapter tell you how to: • Create the lookup tables for Procurement tax codes • Create the Tax Assist rules that reference the lookup tables • Test the rules in Transaction Tester If you have licensed VRA for VAT returns, you need to navigate the Tax Assist feature to set up the tax code lookup tables. For more information on Tax Assist, see Vertex Central Help.
In this chapter Procurement tax codes .................................................................. 51 Creating the Procurement Tax Codes lookup table....................... 54 Creating the Procurement Filtering lookup table .......................... 56 Procurement tax code Tax Assist rules ......................................... 57 Testing the Tax Assist rules and lookup tables - Procurement ..... 80
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Vertex® Indirect Tax O Series® 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax codes
Procurement tax codes The Procurement tax code values are listed in the following table: Tax Code
Input/Output
Good/ Rate Output Notice Service Classification
Output Notice ID
IGZREZ
INPUT
Goods
Zero Rate
Export, Zero Rate
|1|3|
IGZRIZ
INPUT
Goods
Zero Rate
Intra-EU, Zero Rate
|2|3|
IGZRIT
INPUT
Goods
Zero Rate
Intra-EU, Triangulation
|2|7|
Goods
Zero Rate
Intra-EU, Zero Rate, Triangulation
|2|3|7|
BGEMMR INPUT_OUTPUT
Goods
Exempt
Import VAT, Reverse Charge
|9|4|
BGEMCR
INPUT_OUTPUT
Goods
Exempt
Intra-Country, Reverse Charge
|21|4|
BGEMIR
INPUT_OUTPUT
Goods
Exempt
Intra-EU, Reverse Charge
|2|4|
BGLUMR
INPUT_OUTPUT
Goods
Luxury Rate
Import VAT, Reverse Charge
|9|4|
BGLUCR
INPUT_OUTPUT
Goods
Luxury Rate
Intra-Country, Reverse Charge
|21|4|
BGLUIR
INPUT_OUTPUT
Goods
Luxury Rate
Intra-EU, Reverse Charge
|2|4|
BGXXMR
INPUT_OUTPUT
Goods
N/A
Import VAT, Reverse Charge
|9|4|
BGXXCR
INPUT_OUTPUT
Goods
N/A
Intra-Country, Reverse Charge
|21|4|
BGXXIR
INPUT_OUTPUT
Goods
N/A
Intra-EU, Reverse Charge
|2|4|
BGR1MR
INPUT_OUTPUT
Goods
Reduced Rate 1
Import VAT, Reverse Charge
|9|4|
BGR1CR
INPUT_OUTPUT
Goods
Reduced Rate 1
Intra-Country, Reverse Charge
|21|4|
BGR1IR
INPUT_OUTPUT
Goods
Reduced Rate 1
Intra-EU, Reverse Charge
|2|4|
BGR2MR
INPUT_OUTPUT
Goods
Reduced Rate 2
Import VAT, Reverse Charge
|9|4|
IGZRIZT
INPUT
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Vertex® Indirect Tax O Series® 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax codes
Tax Code
Input/Output
Good/ Rate Output Notice Service Classification
Output Notice ID
BGR2CR
INPUT_OUTPUT
Goods
Reduced Rate 2
Intra-Country, Reverse Charge
|21|4|
BGR2IR
INPUT_OUTPUT
Goods
Reduced Rate 2
Intra-EU, Reverse Charge
|2|4|
BGR3MR
INPUT_OUTPUT
Goods
Reduced Rate 3
Import VAT, Reverse Charge
|9|4|
BGR3CR
INPUT_OUTPUT
Goods
Reduced Rate 3
Intra-Country, Reverse Charge
|21|4|
BGR3IR
INPUT_OUTPUT
Goods
Reduced Rate 3
Intra-EU, Reverse Charge
|2|4|
BGR4MR
INPUT_OUTPUT
Goods
Reduced Rate 4
Import VAT, Reverse Charge
|9|4|
BGR4CR
INPUT_OUTPUT
Goods
Reduced Rate 4
Intra-Country, Reverse Charge
|21|4|
BGR4IR
INPUT_OUTPUT
Goods
Reduced Rate 4
Intra-EU, Reverse Charge
|2|4|
BGR5MR
INPUT_OUTPUT
Goods
Reduced Rate 5
Import VAT, Reverse Charge
|9|4|
BGR5CR
INPUT_OUTPUT
Goods
Reduced Rate 5
Intra-Country, Reverse Charge
|21|4|
BGR5IR
INPUT_OUTPUT
Goods
Reduced Rate 5
Intra-EU, Reverse Charge
|2|4|
BGSTMR
INPUT_OUTPUT
Goods
Standard Rate
Import VAT, Reverse Charge
|9|4|
BGSTCR
INPUT_OUTPUT
Goods
Standard Rate
Intra-Country, Reverse Charge
|21|4|
BGSTIR
INPUT_OUTPUT
Goods
Standard Rate
Intra-EU, Reverse Charge
|2|4|
BGUDMR
INPUT_OUTPUT
Goods
User Defined
Import VAT, Reverse Charge
|9|4|
BGUDCR
INPUT_OUTPUT
Goods
User Defined
Intra-Country, Reverse Charge
|21|4|
BGUDIR
INPUT_OUTPUT
Goods
User Defined
Intra-EU, Reverse Charge
|2|4|
BGZRMR
INPUT_OUTPUT
Goods
Zero Rate
Import VAT, Reverse Charge
|9|4|
BGZRCR
INPUT_OUTPUT
Goods
Zero Rate
Intra-Country, Reverse Charge
|21|4|
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Vertex® Indirect Tax O Series® 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax codes
Tax Code
Input/Output
Good/ Rate Output Notice Service Classification
Output Notice ID
BGZRIR
INPUT_OUTPUT
Goods
Zero Rate
Intra-EU, Reverse Charge
|2|4|
BSEMCR
INPUT_OUTPUT
Services
Exempt
Intra-Country, Reverse Charge
|21|4|
BSEMIR
INPUT_OUTPUT
Services
Exempt
Intra-EU, Reverse Charge
|2|4|
BSEMR
INPUT_OUTPUT
Services
Exempt
Reverse Charge
|4|
BSLUCR
INPUT_OUTPUT
Services
Luxury Rate
Intra-Country, Reverse Charge
|21|4|
BSLUIR
INPUT_OUTPUT
Services
Luxury Rate
Intra-EU, Reverse Charge
|2|4|
BSLUR
INPUT_OUTPUT
Services
Luxury Rate
Reverse Charge
|4|
BSXXCR
INPUT_OUTPUT
Services
N/A
Intra-Country, Reverse Charge
|21|4|
BSXXIR
INPUT_OUTPUT
Services
N/A
Intra-EU, Reverse Charge
|2|4|
BSXXR
INPUT_OUTPUT
Services
N/A
Reverse Charge
|4|
BSR1CR
INPUT_OUTPUT
Services
Reduced Rate 1
Intra-Country, Reverse Charge
|21|4|
BSR1IR
INPUT_OUTPUT
Services
Reduced Rate 1
Intra-EU, Reverse Charge
|2|4|
BSR1R
INPUT_OUTPUT
Services
Reduced Rate 1
Reverse Charge
|4|
BSR2CR
INPUT_OUTPUT
Services
Reduced Rate 2
Intra-Country, Reverse Charge
|21|4|
BSR2IR
INPUT_OUTPUT
Services
Reduced Rate 2
Intra-EU, Reverse Charge
|2|4|
BSR2R
INPUT_OUTPUT
Services
Reduced Rate 2
Reverse Charge
|4|
BSR3CR
INPUT_OUTPUT
Services
Reduced Rate 3
Intra-Country, Reverse Charge
|21|4|
BSR3IR
INPUT_OUTPUT
Services
Reduced Rate 3
Intra-EU, Reverse Charge
|2|4|
BSR3R
INPUT_OUTPUT
Services
Reduced Rate 3
Reverse Charge
|4|
BSR4CR
INPUT_OUTPUT
Services
Reduced Rate 4
Intra-Country, Reverse Charge
|21|4|
BSR4IR
INPUT_OUTPUT
Services
Reduced Rate 4
Intra-EU, Reverse Charge
|2|4|
BSR4R
INPUT_OUTPUT
Services
Reduced Rate 4
Reverse Charge
|4|
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Vertex® Indirect Tax O Series® 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax codes
Tax Code
Input/Output
Good/ Rate Output Notice Service Classification
Output Notice ID
BSR5CR
INPUT_OUTPUT
Services
Reduced Rate 5
Intra-Country, Reverse Charge
|21|4|
BSR5IR
INPUT_OUTPUT
Services
Reduced Rate 5
Intra-EU, Reverse Charge
|2|4|
BSR5R
INPUT_OUTPUT
Services
Reduced Rate 5
Reverse Charge
|4|
BSSTCR
INPUT_OUTPUT
Services
Standard Rate
Intra-Country, Reverse Charge
|21|4|
BSSTIR
INPUT_OUTPUT
Services
Standard Rate
Intra-EU, Reverse Charge
|2|4|
BSSTR
INPUT_OUTPUT
Services
Standard Rate
Reverse Charge
|4|
BSUDCR
INPUT_OUTPUT
Services
User Defined
Intra-Country, Reverse Charge
|21|4|
BSUDIR
INPUT_OUTPUT
Services
User Defined
Intra-EU, Reverse Charge
|2|4|
BSUDR
INPUT_OUTPUT
Services
User Defined
Reverse Charge
|4|
BSZRCR
INPUT_OUTPUT
Services
Zero Rate
Intra-Country, Reverse Charge
|21|4|
BSZRIR
INPUT_OUTPUT
Services
Zero Rate
Intra-EU, Reverse Charge
|2|4|
BSZRR
INPUT_OUTPUT
Services
Zero Rate
Reverse Charge
|4|
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Creating the Procurement Tax Codes lookup table
Creating the Procurement Tax Codes lookup table The Procurement tax codes are provided in an ASCII, comma-separated file called TC_Procurement.csv that you will import into the TC Procurement lookup table. This file is available on the product CD and the myVertex customer portal. To create the TC Procurement lookup table, complete the following steps: 1. From the Tax Setup menu, select Tax Assist > Lookup Tables. 2. In the Tax Assist Rule Search Results window, select Procurement from the Business Event drop-down field. 3. Click Add Lookup Table. The Edit Lookup Table window displays with the Properties tab selected. 4. Type TC Procurement for the Lookup Table Name. 5. Type Tax Code for the Result Name. 6. Select String from the Data Type drop-down list. 7. Type the following parameter names: • Input/Output for Parameter 1 Name • Good/Service for Parameter 2 Name • Rate Classification for Parameter 3 Name • Output Notice for Parameter 4 Name 8. Set up the following options as needed: • Effective Date and End Date define the period for which the lookup table is valid. The system uses the As of date for Effective Date as default but does not specify an End Date. You can change the Effective Date or enter an End Date if needed. • Description provides a place where you can include additional text information about the lookup table. This can be helpful if you need to work with the table again as, for example, a reminder about the purpose of the table. Once you complete the lookup table properties, you are ready to import the records for your lookup table. 9. Click the Records tab. 10. Click Import (Replace)... from the Lookup Table window to import the TC_Procurement file provided by Vertex. 11. Navigate to the TC_Procurement.csv file.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Creating the Procurement Filtering lookup table
12. Click OK. The lookup table displays as in the following illustration:
13. Click Save Lookup.
Creating the Procurement Filtering lookup table Create the Procurement Filtering Lookup Table to include only relevant output notices when you assign tax codes. To create the Procurement Filtering Lookup Table, complete the following steps: 1. From the Tax Setup menu, select Tax Assist > Lookup Tables. 2. Click Add Lookup Table. The Edit Lookup Table window displays with the Properties tab selected. 3. Type Procurement Filtering Lookup Table for the Lookup Table Name. 4. Type ALLOutputNoticeIDs for the Result Name. 5. Select Array from the Data Type drop-down list. 6. Type OutputNoticeID for the Parameter 1 Name. 7. Set up the following options as needed: • Effective Date and End Date define the period for which the lookup table is valid. The system uses the As of date for Effective Date as default but does not specify an End Date. You can change the Effective Date or enter an End Date if needed. • Description provides a place where you can include additional text information about the lookup table. This can be helpful if you need to work with the table again as, for example, a reminder about the purpose of the table. 8. Click the Records tab.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
9. Enter the following values for ALLOutputNoticeIDs and OutputNoticeIDs as pictured in the following figure:
10. Click Save Lookup.
Procurement tax code Tax Assist rules You will be setting up the following rules for Procurement tax codes: • Tax Code Filter Assignment - Procurement • No Tax Result Code - Procurement • Import Tax Code • Input Tax Code • Tax Code Null When you have finished setting up the rules, you will need to make sure that they are in the correct order.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
Setting up the Tax Code Filter Assignment - Procurement rule The Tax Code Assignment - Procurement rule assigns the tax code to the tax calculation results for Procurement transactions. It references the output notice filter table and the tax code table to make the final tax code assignment at the tax element. To set up the Tax Code Assignment - Procurement rule, complete the following steps: 1. 2. 3. 4. 5. 6.
From the Tax Setup menu, select Tax Assist. Select Post-Calculation from the submenu. Click Add Rule. Type Tax Code Assignment - Procurement for the Name. Select the Builder tab. In the IF field, leave the default setting of Always Applies.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
7. Drag the Taxability Drivers, Codes, Names, Types field into the SET field as in the following illustration:
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
8. Double-click the Taxability Drivers, Codes, Names, Types field and select tax.taxCode from the drop-down list as in the following illustration:
9. Select the Advanced tab.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
10. Drag the LOOKUP() string table into the TO field as in the following illustration:
11. Click the field and select TC Procurement from the list that displays as in the following illustration:
12. Select the Basic tab.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
13. Drag the Taxability Drivers, Codes, Names, Types field into the Input/Output field as in the following illustration:
14. Click the field and select tax.inputOutputType from the drop-down list that displays.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
15. Drag the True or False field into the Good/Service field as in the following illustration:
16. Click the field and select tax.isService from the drop-down list that displays. 17. Drag the Taxability Drivers, Codes, Names, Types field into the Rate Classification field. 18. Click the field and select tax.rateClassification from the drop-down list that displays. 19. Select the Advanced tab.
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20. Drag the LOOKUP() array table into the Output Notice field as in the following illustration:
21. The Procurement Filtering Lookup Table is now nested inside the TC Procurement lookup table. Drag the Output Notice ID Field into your rule's Output Notice ID field as in the following illustration:
22. Click Save Rule.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
The rule should look like the following figure:
Setting up the No Tax Result Code - Procurement rule O Series Transaction Tester may return a tax element in the XML response that provides information, but has no tax consequence and does not belong on a return. These elements have a tax result of "No Tax." For example, a "No-Registration liability may exist" message displays for a transaction in a jurisdiction where the seller is not registered. The seller may not have registration and not yet met threshold. Although this message is accurate, there is no return or reporting obligation for this tax element. These No Tax transactions should be assigned the NO TAX code and removed from reporting. The No Tax Result Code displays transactions that should not display on the return. To set up the No Tax Result Code - Procurement rule, complete the following steps: 1. 2. 3. 4. 5.
From the Tax Setup menu, select Tax Assist. Select Post-Calculation from the submenu. Click Add Rule. Type No Tax Result Code - Procurement for the Name. Select the Builder tab.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
6. Drag the = operator into the IF field as in the following illustration:
7. Drag the Taxability Drivers, Codes, Names, Types field into the left side of the IF field as in the following illustration:
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8. Double-click the Taxability Drivers, Codes, Names, Types field and select tax.taxResultType from the drop-down list.
9. Drag the user-defined string value field (illustrated below) into the right side of the field.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
10. Click the field and select No Tax from the drop-down list that displays as in the following illustration:
11. Drag the Taxability Drivers, Codes, Names, Types field into the SET field. 12. Click the SET field and select tax.taxCode from the drop-down list that displays as in the following illustration:
13. Drag the user-defined string value field into the TO field. 14. Click the TO field and type NO TAX. 15. Click Save Rule.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
The rule should look like the following figure:
Setting up the Import Tax Code rule The Import Tax Code rule assigns tax code MGXXM to all transactions with import VAT. If you pass the import VAT you have paid into O Series, this rule is required because O Series does not process these transactions from a calculation perspective but reports on data passed into the calculation engine. To set up the Import Tax Code rule, complete the following steps: 1. 2. 3. 4. 5. 6.
From the Tax Setup menu, select Tax Assist. Select Post-Calculation from the submenu. Click Add Rule. Type Import Tax Code for the Name. Select the Builder tab. Drag the = operator into the IF field as in the following illustration:
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
7. Drag the Taxability Drivers, Codes, Names, Types field into the left side of the field as in the following illustration:
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
8. Double-click the Taxability Drivers, Codes, Names, Types field and select tax.inputOutputType from the drop-down list as in the following illustration:
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
9. Drag the user-defined string value field (illustrated below) into the right side of the field.
10. Click the field and type IMPORT. 11. Drag the Taxability Drivers, Codes, Names, Types field into the SET field. 12. Click the SET field and select tax.taxCode from the drop-down list that displays as in the following illustration:
13. Drag the user-defined string value field into the TO field. April 2012
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
14. Click the TO field and type MGXXM. 15. Click Save Rule. The rule should look like the following figure:
Setting up the Input Tax Code rule The Input Tax Code rule assigns tax code IXXXX to all transactions with input VAT. If you pass the input VAT you have paid into O Series, this rule is required because O Series does not process these transactions from a calculation perspective but reports on data passed into the calculation engine. To set up the Input Tax Code rule, complete the following steps: 1. 2. 3. 4. 5.
From the Tax Setup menu, select Tax Assist. Select Post-Calculation from the submenu. Click Add Rule. Type Input Tax Code for the Name. Select the Builder tab.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
6. Drag the = operator into the IF field as in the following illustration:
7. Drag the Taxability Drivers, Codes, Names, Types field into the left side of the field as in the following illustration:
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
8. Double-click the Taxability Drivers, Codes, Names, Types field and select tax.inputOutputType from the drop-down list as in the following illustration:
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9. Drag the user-defined string value field (illustrated below) into the right side of the field.
10. Click the field and type INPUT. 11. Drag the Taxability Drivers, Codes, Names, Types field into the SET field. 12. Click the SET field and select tax.taxCode from the drop-down list that displays as in the following illustration:
13. Drag the user-defined string value field into the TO field. April 2012
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
14. Click the TO field and type IXXXX. 15. Click Save Rule. The rule should look like the following figure:
Setting up the Tax Code Null - Procurement rule The Tax Code Null - Procurement rule assigns a default code if none of the conditions are satisfied. The purpose of this rule is to allow you to set up procedures to review all transactions in this category. Any transaction with this DEFAULT code should be reviewed. To set up the Tax Code Null - Procurement rule, complete the following steps: 1. 2. 3. 4. 5.
From the Tax Setup menu, select Tax Assist. Select Post-Calculation from the submenu. Click Add Rule. Type Tax Code Null - Procurement for the Name. Select the Builder tab.
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6. Drag the = operator into the IF field as in the following illustration:
7. Drag the Taxability Drivers, Codes, Names, Types field into the left side of the field as in the following illustration:
8. Click the right side of the expression and type "". 9. Drag the Taxability Drivers, Codes, Names, Types field into the SET field.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Procurement tax code Tax Assist rules
10. Double-click the SET field and select tax.taxCode from the drop-down list as in the following illustration:
11. Drag the field into the TO field and type "DEFAULT". 12. Click Save Rule. 13. The rule should look like the following figure:
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Testing the Tax Assist rules and lookup tables Procurement
Order of Procurement tax code rules The Tax Assist rules for Procurement tax codes must be in the same order as in the following illustration:
Figure 1: The Procurement Tax Assist rule hierarchy.
Testing the Tax Assist rules and lookup tables Procurement After you have created your Tax Assist rules and lookup tables, you need to run some test transactions to see if the tax codes are assigned correctly. The following examples display transaction results in the O Series Transaction Tester feature. For more information on Transaction Tester in O Series, refer to Vertex Central Help.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Testing the Tax Assist rules and lookup tables Procurement
Example 1: Testing tax code BGSTIR Intra-EU Good, Reverse Charge This example is an Intra-EU good, reverse transaction. The physical origin is Germany and the destination is Austria. The taxpayer is registered in Austria and the vendor is registered in Germany. The extended price is 100.00. The tax code displays in the transaction results as in the following illustration:
In this example, the tax code indicates the following: • • • •
It is both input and output. It is a good. It is standard-rated. It is an intra-EU reverse charge.
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Vertex Indirect Tax O Series 6.0 Tax Assist Setup User Guide Chapter 3. Setup for Procurement Tax Codes Testing the Tax Assist rules and lookup tables Procurement
Example 2: Testing tax code IXXXX, Domestic Input This example is a domestic input transaction in Italy. The extended price is 100.00. The tax code displays in the transaction results as in the following illustration:
In this example, the tax code indicates the following: •
It is an input.
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