1. Configure tax regime. Make sure to check Allow tax recovery.

2. Configure 2 taxes. One standard tax and one offset tax. Standard tax will not be used as
standalone tax, only in pair with offset tax.

3. Configure standard tax. Make sure to use same tax currency for standard tax and offset tax.
4. Configure offset tax with same currency. Check Allow tax recovery and select a primary recovery
type that will later be used on Recovery rate configuration.
5. Configure two tax rates for each tax. On standard tax rate associate offset tax rate code.
6. Offset tax rate is configured with the same procent as standard tax, but negative. Do not check
Allow ad hoc tax rate.

7. Standard tax rate configuration. Associate offset tax rate code from above step.

8. Configure 100% recovery rate for offset tax rate with the same recovery type used while
configuring the tax code.
9. Configuration Owner tax option. Check Allow offset tax calculation and set Offset tax basis as
Ship from party.

10. Supplier site or third party site profile. Make sure Allow tax applicability and Allow offset taxes
are checked.

11. Create an invoice for the supplier set above and check offset tax calculation.
https://docs.oracle.com/en/cloud/saas/financials/20b/faitx/tax-configuration.html#FAITX354652