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R12: Ebtax: How Location Based Tax Works in R12 E-Business Tax (EBTax) - Includes sample setup (Doc ID 1133994.1)

Last updated on JUNE 21, 2023

Applies to:

Oracle Receivables - Version 12.0.0 and later
Oracle E-Business Tax - Version 12.0.0 and later
Oracle Payables - Version 12.1.3 to 12.2.3 [Release 12.1 to 12.2]
Information in this document applies to any platform.


E-Business Tax (EBTax) Information Center Regime to Rate Setup  > Note 1133994.1

This note provides an overview of how Location Based taxes work in Release 12 E-Business Tax.  For the purposes of this note the scenario has been greatly simplified and we are focused only on the items critical for location based taxes to derive a tax on a transaction.


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In this Document
 1.  How Location Based Taxes Work
     a.  What is a location based tax
     b. How are Sales Tax and Use Tax Different?
     c. How Does E-Business Tax Determine That a Location Based Tax Should Be Applied and find the Rate?
 2.  Setup Required For A Simple Example
     a) Create a Tax Regime & Associate to the Operating Unit
     b) Create the Tax and Link to the Geography Type
     c) Create the Tax Status for each Tax
     d) Setup (or verify) TCA Geography Hierarchy and Validation
         ii) County Code
         iii) City Code
         iv) Ensure Validations Are Set
         v) Run Geography Name Referencing Program for HR_Locations_ALL and HZ Locations
     e) Define Tax Jurisdictions
     f)  Define Tax Rates
     g) Set Default Tax Rules and Enable Tax
     h) Test
 3)  Troubleshooting

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