This is one of a series of White Papers written by David Sparks, each one focussing on a specific aspect of Oracle.
Oracle define two key aspects to the configuration of E-Business tax. The Tax Content Services and the Tax Determination Services.
The Tax Content Services store and maintain the master and reference data components that are needed to support E-Business Tax. This includes:
The Tax Determination Services are the rules and the management of the rules that are used to determine which of the Tax Content Service components apply, and when. The rules are organised into a hierarchy of rule processes which determine:
- Tax Authorities and Tax Jurisdictions where taxes apply, First Party and Third party Entities involved in transactions which are taxable, Transactions that are taxable, Taxes that may be applicable
- Place of Supply, Tax Applicability, Tax Registration, Tax Status, Tax Rate, Taxable Basis, Tax Recovery Rates
In this document I’ll first look at the Tax Content, and then at the Tax determination. Towards the end of this document the approach becomes iterative as further content is required to allow specific determinations to be made.