Select Page

United Kingdom (UK) VAT with Oracle E-Business Tax (EBTax)

by | May 5, 2018 | EU, VAT/GST

VAT has been around in the United Kingdom (UK) now since 1973 and started, as many tax schemes do, with pretty low rates.  Currently however it is all the way up at 20% (while still less than other high rate countries like Ireland, Hungry, Norway or Sweden)

Tax Authority:  HMRC

Tax Rates: Standard (20%), Exempt, Zero, Reduced

Tax Recovery Rates:  100%, 0%

Setting VAT in Oracle E-Business Tax (EBTax) for the United Kingdom is a relatively straightforward exercise and essentially comes with few surprises. Just as with all VAT regimes attention to how a company leverages their product categories is how precision can be achieved.  Some firms leverage Intended Use and some firms simply go with Tax Classification Codes.

Your Setup is NOT Wrong if it Works

None of these uses are lack thereof are wrong. It really comes down to how each company can organize there process in a manner that fits it company personality. So often I see firms telling companies that they are “wrong” or have a bad configuration. This type of “We know better than you are anyone for that matter” attitude usually comes off rather condescending.

If your Tax configuration calculates the correct tax and is effective within the boundaries of what your company is comfortable with then there is no “better” way.

I think often times folks try to get consulting gigs by simply saying that the other guys are wrong and we know better so hire us. It is just such an offensive turn-off for many firms to be approached this way.

The Infographic below shows a baseline configuration for the UK and by no means is intended to be a fully inclusive example.

Disclaimer: Sample Tax Set Up

• The following provides a sample tax set up, giving an example of how Oracle Tax could be configured

• It cannot be relied upon as ‘turnkey’ tax content solution.

• While it may serve as an initial implementation foundation or for educational purposes, businesses must determine if there are specific tax requirements for their business or industry

ConceptConventionReference
Regime[CT] [TAX TYPE] UK VAT
Tax[CT] [TAX TYPE] UK VAT
UK VAT OFFSET
Status[CT] [STATUS]UK STANDARD
UK REDUCED
UK ZERO
UK EXEMPT
UK OUT OF SCOPE
Jurisdiction[CT] ["JURISDICTON"]UK JURISDICTION
Recovery[CT] [RECOVERY RATE]UK 100% RECOVERY
UK 0% RECOVERY
Rates[CT] [RATES]UK STANDARD
UK REDUCED
UK ZERO
UK EXEMPT
UK OUT OF SCOPE
Rules[CT] [RULE]Place of Supply
Applicability
Registration
Status
TCC direct
Product Category Based
Reverse Charge

Zero Cost EBTax Configurations

P2PO2C
GB_AP_STANDARDGB_AR_STANDARD
GB_AP_ZEROGB_AR_ZERO
GB_AP_REDUCEDGB_AR_REDUCED
GB_AP_EXEMPTGB_AR_EXEMPT
GB_AP_OUT_OF_SCOPEGB_AR_OUT_OF_SCOPE
GB_AP_REVERSE_CHARGE

Get Started Now!

We will get in touch with as soon as possible

Thanks for signing up!