Oracle eBTax naming convention – when to use ZERO RATE

by | Dec 27, 2013 | Tax Types | 0 comments

On many implementations I work on, the client will often have a ‘ZERO’ rate when in actual fact, they don’t have any zero rated produced under their tax regime. There are only a few exceptions to this, the UK being one of them with a genuine Zero Rate.

The reason why you should not call a rate ‘Zero’ when it is not a zero rated supply is due to the following statement;

If you sell zero-rated goods or services, you can generally reclaim VAT on any purchases that relate to those sales. This is in contrast to if you sell only exempt goods or services, where you cannot normally reclaim VAT on your purchases – see the section on when VAT must not be charged.

So use exempt, out of scope but not Zero unless your rate genuinely is zero rated.

Andrew Bohnet

Andrew Bohnet

Managing Director, Oracle Fusion Tax/eBTax expert at Innovate Tax

Andrew Bohnet is the current chair for the Oracle Tax Management SIG. He founded Innovate Tax to offer clients complete tax solutions making the most of the rich functionality of the R12 and Fusion tax modules. Whether it is analysis, design, configuration or support, Innovate Tax provide an unparalleled service when it comes to a complete tax solution. Having worked on one of the first Oracle R12 implementations in Europe, Andrew was exposed to the tax module early on and worked closely with Oracle to fix bugs, enhance functionality and present on numerous occasions on the subject of tax and Oracle. When it comes to presenting on eBTax, you wont find a more experienced consultant outside of Oracle.

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