Set up tax registrations for your first party legal establishments and your third party customers/customer sites and suppliers/supplier sites. A tax registration contains information related to a party's transaction tax obligation with a tax authority for a tax jurisdiction where it conducts business. In some cases a single location may need to file multiple registrations.
E-Business Tax uses tax registrations in tax determination and tax reporting. For each tax that you create, you must define either a default tax registration or a tax rule for the rule type Determine Tax Registration. This rule determines under which tax registration a transaction is processed. See: Determine Tax Registration for more information.
You must set up a separate tax registration to represent each distinct registration requirement for a first party, including:
Each legal establishment that is required to file tax documents.
Each tax regime, where the registration is used for all taxes within the regime.
Each tax within a tax regime that has a separate tax requirement, where the registration is used for all jurisdictions where the tax is applicable.
Each tax jurisdiction that has a separate tax requirement for a tax registration.
Each tax for which the party is Not Registered, if the Not Registered tax registration status is used as a tax condition in tax rules.
If a party has more than one tax registration under the same tax regime, then E-Business Tax considers the tax registrations in the order: jurisdiction; tax; tax regime.
You optionally set up tax registrations for your customers and suppliers, as necessary, to support specific tax regulations or reporting requirements.
You can also create new registration records to update an existing registration with current information, for example, when a tax registration expires, when a company acquires a different tax registration number, or when the tax authority changes the laws regarding registration.
Before you can set up tax registrations, you may need to complete one or more of these tasks:
Set up tax regimes. (mandatory)
Set up taxes. (optional)
Set up parties. (mandatory)
Set up party tax accounts. (optional)
Set up bank accounts. (optional)
Set up lookups for registration type, status, and reason. (optional)
Set up tax jurisdictions. (optional)
Set up tax authorities. (optional)
To set up a tax registration:
Select a first party legal establishment, or a third party or third party site.
Navigate to the Create Tax Registration Details page.
Enter the tax regime for this registration.
If necessary, enter the tax and tax jurisdiction for this registration.
Enter the company's registered name in the Company Reporting Name field, if the registered name is different from the company's trade name.
If applicable, enter the tax registration type.
The seeded tax registration types CPF, CNPJ, and OTHERS are used in tax registration number validation for Brazil. All other tax registration types are for reporting purposes only.
Enter the company tax registration number. Where applicable, E-Business Tax validates the number according to tax authority validation rules.
If you set the tax regime option to use the legal registration number as the tax registration number, then select the registration number from the legal registration numbers in the list of values.
If you set the option Allow Duplicate Tax Registration Numbers for the tax, then multiple parties and party sites can use the same tax registration number for this tax. See: Setting Up Taxes for more information.
Enter the party's legal registration address for this tax registration.
Enter the party's tax registration status. You can use tax registration status as a determining factor in tax rules.
E-Business Tax provides these seeded registration statuses:
Agent - The party acts as a withholding agent for the tax authority for the applicable tax.
Registered - The party is registered for the applicable tax.
Not Registered - The party is not registered for the applicable tax.
Use the Source field to identify this registration as implicit or explicit.
An explicit tax registration means that the party is registered with the local tax authority and has a tax registration number. An implicit tax registration means that the party is not formally registered with the tax authority, but the party is considered to meet one or more requirements for reporting taxes because of the level of business conducted, typically a minimum presence in the country and/or a minimum revenue threshold.
Enter the tax authority responsible for issuing tax registration numbers for this registration.
If necessary, enter a tax registration reason to use for tax reporting purposes, for example, to indicate the reason for an implicit registration.
Enter the effective dates for this registration.
Check the Set as Default Registration box to use the tax registration number associated with this registration as the default tax registration number on all tax reports.
If necessary, update the values in the Invoice Controls region that default from the party tax profile as required by this tax registration.
At transaction time, the values set at the tax registration level override the values set at the party tax profile level.
If you associated tax reporting types with tax registration, enter any applicable tax reporting codes. See: Setting Up Tax Reporting Types for more information.
If you are creating a tax registration for a first party legal establishment, you can set up party tax accounts by registration. See: Setting Up Tax Accounts for more information.
Note: Tax registration account information takes precedence over customer and supplier account information.
Set up bank account details for this registration if the tax authority requires bank account information on tax registration reports.
If defined, the reporting and collecting tax authorities default from the tax jurisdiction associated with this registration. If necessary, enter or update these fields with tax authorities specific to this tax registration.