E-Business Tax provides tax services for the following categories of Payables invoices:
• Standard Invoices - includes Standard, Mixed, PO Price Adjustment, Credit Memos, and Debit Memos
• Prepayment Invoices
• Expense Reports
E-Business Tax does not provide tax services for Withholding Taxes or 1099 Income Taxes.
Invoice Header Tax Amounts
• Total Tax: Total of inclusive and exclusive tax due to the supplier.
• Self-Assessed Tax: Total of self-assessed tax. Self assessed tax amounts are taxes that you are liable for, but that do not appear on the invoice. Self-assessed taxes are also known as reverse charge or use taxes in certain tax regimes. You can view self-assessed tax amounts in the Self Assessed Tax Amount field in the Invoice Header. This field is for reference only; it has no impact on the amount due to the supplier.
Invoice Line Tax Amounts
• Exclusive Tax: Shown in separate, summarized lines on the invoice. Recoverable and Non Recoverable exclusive taxes are shown in separate distributions and are summarized in a tax line. You can view exclusive tax amounts in the Invoice window, the Invoice Workbench, Distributions (All Distributions), or the Tax Lines
Summary window.
• Inclusive Tax: Shown in the Included Tax Amount column for the line. The line amount is the total of the item amount and the inclusive tax amount. The inclusive tax amount is provided for reference only. Recoverable and Non Recoverable inclusive taxes are shown in distributions under a non-tax line. To view the inclusive tax amounts as separate lines, use the Tax Lines Summary window or the Distributions window. For Prepayments, inclusive tax amounts are also shown in the Tax Amount Applied field in the Apply Prepayments window.
When you validate an invoice, E-Business Tax recalculates the tax and places any tax-related holds on the invoice. If you update a tax driver on a validated invoice, you must revalidate it. In general, E-Business Tax automatically calculates all applicable tax amounts for invoices except in the following instances:
• If you import invoices into Payables from another source, then the tax can be imported with the invoice.
• Depending on your tax setup, you can manually enter, update, or cancel some tax lines in E-Business Tax.
