Use tax reporting types to capture additional tax information on transactions for your tax reports. You can use tax reporting types for your internal reporting needs and to fulfill country-specific reporting requirements.

A tax reporting type identifies a specific unit of information, such as a date or a text comment, to associate with a specific tax usage, such as a fiscal classification or tax jurisdiction. You can also create a group of tax reporting codes for a tax reporting type, to provide additional granularity for tax reporting. You can add tax reporting codes to a tax reporting type at any time.

A tax reporting type region appears on the corresponding page of each E-Business Tax entity that you associate with tax reporting types. If applicable, the selection is limited to the tax reporting types associated with the corresponding tax regime and associated entities.

Use legal justification reporting types to associate legal message text on your Receivables transactions and lines. This message can also be printed on invoices using BPA.

Prerequisites

Before you can set up tax reporting types, you may need to complete one or more of these tasks:

• Set up tax regimes. (mandatory for regime-specific reporting)

• Set up taxes. (mandatory for tax-specific reporting)

To set up a tax reporting type:

1. Navigate to the Create Tax Reporting Type page.

2. Enter a tax reporting type code and name, and an effective date range.

3. To create tax reporting codes, from the Reporting Type Purpose list, select Tax Reporting Type. To create legal justification code, from the Reporting type Purpose list select the Legal Justification Message Type.

4. If applicable, enter the tax regime and tax to associate with this tax reporting type. If entered, this tax reporting type and its associated tax reporting codes are only available to the tax regime or tax.

5. Select the data type. For text data types, you can enter text in any language supported in your installation.

6. Check the Define List of Reporting Codes box to define a list of reporting codes to use with this tax reporting type. If the Reporting Type Purpose is Legal Justification Message Type, then this option is automatically selected.

   The corresponding list of values for this tax reporting type will only contain the tax reporting codes that you define.

7. If necessary, enter a minimum and/or maximum length for the reporting codes that you define for this tax reporting type.

8. Use the Reporting Type Uses region to associate this tax reporting type with the applicable E-Business Tax entities.

   You can associate a tax reporting type with more than one entity, but you can associate only one code from a reporting type within the same date range.

9. Enter the reporting codes to use with this tax reporting type.

Setting Up a Reverse Charge VAT Reporting Code

If you plan to use reverse charge VAT, then you must create a reporting code with the name REVERSE_CHARGE_VAT and assign it to the relevant tax rates.

To set up a reverse charge VAT reporting code:

1. Enter REVERSE_CHARGE_VAT in the Tax Reporting Type Code field.

2. Enter REVERSE_CHARGE_VAT in the Name field.

3. Select Yes/No Indicator from the Data Type list.

4. In the Reporting Type region, select the Enabled check box next to the Tax Rate reporting type use.

5. Select a Tax Regime Code from the LOV, for example, UK_VAT

6. Select a Tax from the LOV, for example UK_VAT.

7. To use a date other than the system date, enter a date in the Effective From field.