Tax Engine Does Not Consider Tax Registration Status for Intra EU Transactions (Doc ID 2019333.1)

Last updated on JULY 07, 2015

Applies to:

Oracle E-Business Tax - Version 12.2.4 and later
Information in this document applies to any platform.

Symptoms

When eBTax determines a Tax Rate Code, it will go through a number of Rules Types.
At some point, it will get to the “Determine Tax Status” Rule Type.
You are using a one on one relationship between Tax Status and Tax Rate and it will also determine the Tax Rate related.

In the Determining Factor Set, you use a check on the Registration Status of the Third Party (Ship To Party Registration Status).
Determining Factor Class = Registration
Class Qualifier = Ship To Party
Determining Factor Name = Registration Status

When you enter a local transaction (the Ship/Bill from is the same Country as the Ship/Bill to Country), then the Rule works.
When we enter an Intra EU Transaction, then the Rule fails.

If the Tax Regime of the First Party is different from the Third Party, then eBTax cannot determine the Tax Registration Status.
You need this status because the applicable Tax Rate is dependent on the status.

The same happens with VAT Registration Number.

Cause

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