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How To Apply A Tax To Exports in R12 E-Business Tax (EBTax) (Doc ID 1063534.1)

Last updated on DECEMBER 03, 2019

Applies to:

Oracle E-Business Tax - Version 12 and later
Information in this document applies to any platform.


This note was created to document an example for how a system can be configured to charge a specific Zero Rate tax rate for exports.  The specific scenario spawning this note was defined in Note 577996.1, a Case Study focused on how to implement E-Business Tax for Canada.  Refer to the above referenced note for more information about the exact Regime to Rate setup surrounding this example.

While the example and requirement below are specific to Canada, similar setup can be implemented for other countries such as those in the EU with similar requirements.

Specific Requirement:

The Canada Revenue Agency has stated that goods exported out of Canada are zero rated for GST if they take delivery outside of Canada. Goods delivered inside Canada may also be zero rated as exports in certain circumstances such as when the purchase is not a consumer and the purchaser exports the goods as soon as is reasonable in the circumstance after you deliver them.

The default logic will automatically exclude items with a ship-to address outside of Canada from having GST applied. 

The solution shown below assumes that all exports should in fact have a tax line with a zero rate tax instead of no tax line at all.  It addresses two unique scenarios:

Scenario 1:  Goods are sold with a ship-to address outside of Canada
Scenario 2:  Goods are delivered in Canada for immediate export

Again in both of these cases the tax should apply with a Zero Rate.

Note:   This is intended to provide a representative example of how to comply with a simplified requirement.  It does not attempt to document how to comply with provincial or federal export taxes in all cases.  Consult your tax department for detailed requirements for your business/entity.


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In this Document
 Regime to Rate Setup
 Create a Determining Factor Set
  Define a new tax rate code
 Create Condition Sets
 Create a Place of Supply Rule
 Create a Tax Status Rule
 Create a Tax Rate Rule
 Test 1 - Canada Ship To for Immediate Export
 Test 2 - Ship to is non-Canadian address.

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