Tax Recovery

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 Objectives

After completing this module, you should be able to:

• Understand tax recovery processing
• Set up a tax recovery rate
• Set up a tax recovery rule

Copyright © 2007, Oracle. All rights reserved.

 Agenda

– Overview of Tax Recovery

– Define a Tax Recovery Rate
– Create a Tax Recovery Rule
– Describe Tax Recovery Processing

Copyright © 2007, Oracle. All rights reserved.

 E-Business Tax Architecture

5
Tax Repository, Reports, KPIs, Dashboards ….
Management
Services Calculate Determine Meta
4 Taxes Recovery ….. Data
Registration Rates Taxonomy
Rule Tax Regimes Place of
3 Taxes Supply Taxable Basis Recovery
& Rules
Engine
Party Product Place Process
2 Configuration
Meta Data
Repository

1
Tax Tax Jurisdiction Status
Authority Tax
Definition Regime Rates

Single Data Model

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E-Business Tax Homepage –
Tax Recovery

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 Tax Recovery

Recoverable Tax - A tax that allows full or partial

recovery of taxes paid on purchases, either as a
recoverable payment or as an offset against taxes
owed.

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 Value Added Tax Overview

.50 .25

1.00 .50

VAT TAX = .50 + 1.00 + .25 + .50

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 Regime-to-Rate Flow with UK VAT

Tax Tax Tax Tax Status Tax Rate Recovery

Regime Jurisdiction Rate
UK VAT UK VAT UK VAT Standard 17.5% 100%
Reduced 5.0% 100%
Zero Rated 0.0%
Exempt 0.0%

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 Agenda

– Overview of Tax Recovery processing

– Define a Tax Recovery Rate
– Create a Tax Recovery Rule
– Describe Tax Recovery Processing

Copyright © 2007, Oracle. All rights reserved.

 Tax Recovery Rates

E-Business Tax uses the recovery rate derived from:

• Tax Recovery Rate rules.
• Recovery rate associated with the tax rate.
• Default recovery rate defined for the tax.

OR

Copyright © 2007, Oracle. All rights reserved.

 Agenda

– Overview of Tax Recovery processing

– Define a Tax Recovery Rate
– Create a Tax Recovery Rule
– Describe Tax Recovery Processing

Copyright © 2007, Oracle. All rights reserved.

 Rule Engine – Recovery Rate

• Determine recovery rate

• Calculate recovery amount

Place of Applicability Status

Tax Taxable Tax Recovery
Supply/ & &
Regimes Basis Calculation Rate
Taxation Registration Rates

Copyright © 2007, Oracle. All rights reserved.

 Agenda

– Overview of Tax Recovery processing

– Define a Tax Recovery Rate
– Create a Tax Recovery Rule
– Describe Tax Recovery Processing

Copyright © 2007, Oracle. All rights reserved.

 Tax Recovery Processing

Steps in Tax Recovery

Processing:
• Allocate tax amount per item
distributions
• Determine recovery types
• Determine recovery rates
• Determine the recoverable
amounts
• Determine the non-
recoverable amount

Copyright © 2007, Oracle. All rights reserved.

 Summary

In this module, you should have learned how to:

• Understand tax recovery processing
• Set up a tax recovery rate
• Set up a tax recovery rule

Copyright © 2007, Oracle. All rights reserved.