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VAT Tax Amount is Not Getting Applied to Goods Moving from one Country to Another (Doc ID 1986566.1)

Last updated on JULY 06, 2020

Applies to:

Oracle Transportation Management - Version 6.0 and later
Information in this document applies to any platform.


Provincial Tax is configured in OTM.

After doing this setup, when executing the action "Calculate Provincial Tax" then tax is being calculated as 0 USD when it should take a percentage of total invoice cost.
observed that same configuration is working fine for an example going to and from the same country. but it doesn't work when you have source location in one country and Destination in another.

For example:

Have an Order Release Going From a US Source location called Indiana to a Canadian Destination Called Toronto
Provincial Tax is setup to Calculate a 6 Percent VAT for Order Releases that Move Between the Source and The Destination
Complete the Process of Creating the Order release and its related Buy Shipments, and Invoice
Within the Invoice Click Actions>Financials>Taxes>Calculate Provincial Tax, here you will see the VAT Analysis Showing 0.00USD

Complete this Same Process from a US Source to a US Destination and you will see the VAT Analysis Showing the 6% value in USD


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