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VCTV

Vendor charged tax verification rules and assumptions

These are rules and assumptions to know for successfully using the Vendor Charged Tax Verification (VCTV) feature.
Term
Rule or assumption
Accrual method
If a valid accrual method isn't provided to the system, the default method is Pay VCT No Accrual. The accrual method's always specified at the invoice level.
Address
If a ship to or supply address isn't found, the transaction's treated as a non-vendor charged tax transaction. The standard Determination tax calculation's performed. If the transaction type is Goods, the system checks the ship to address at the invoice or line level. If the transaction type is Service, the system evaluates the system checks the supply address at the invoice or line level.
Calculation direction
The calculation direction must be forward. The VCTV feature processes only forward calculations.
Company role
The VCTV feature is triggered only if the customer role's set to Buyer. This is a requirement of the VCTV feature.
Direct Pay Permit (DPP)
DPPs apply to U.S. jurisdictions (states and territories) only.


All lines associated with an invoice must have a valid DPP to be considered for VCTV processing. The invoice gets ignored if only some lines have a valid DPP.


You should add a DPP for a state when the DPP applies to all the jurisdictions in the state. If a local jurisdiction doesn't allow a DPP, add the DPP using an exemption certification for the state and the local jurisdiction.

Document type
The VCTV feature's triggered only if the value entered in the Document Type field matches the calling system's document type.
Minimum (or critical) amount to trigger VCTV
This is a required setting. If not set, the default critical amount is zero.
Model Scenario
By default, the Model Scenario feature doesn't store records in the audit table. If you want to store records in the audit table, use a TransEditor.
Pay to vendor amount
Based on the accrual method you selected, the pay to vendor amount includes the amount you should send to the vendor for the invoice.
Reverse transactions
The VCTV feature isn't triggered for reverse transactions.
Start and end dates
Some settings, like tolerance settings or DPP setting, include Start Date and End Date fields. When you want to deactivate a setting that includes date fields, a best practice is to enter the end date rather than deleting. Entering an end date maintains the transaction information so you can research it later.


Deleting is available so that, when you use non-valid entries for testing, you can permanently remove the entries.

Tolerance amount and tolerance percentage
These are optional fields. The tolerance amount and tolerance percentage is considered at the invoice level. During VCTV processing:
  • The tolerance amount check's ignored if the Amount Value field's blank (not zero) in your configured tolerance settings.
  • The tolerance amount check runs when a value exists in the Amount Value field in your configured tolerance settings.
  • The tolerance amount and tolerance percentage checks run when values exist in the Amount Value and Percentage Value (%) fields in your configured tolerance settings.
  • Both tolerance checks get ignored when the Amount Value and Percentage Value (%) fields are blank (not zero) in your configured tolerance settings.
Trusted vendor
When a vendor's marked as a trusted vendor, the system determines the correct jurisdictions for the tax and returns the Vendor Charged Tax (VCT) amounts for each tax jurisdiction that's specific to the invoice. No additional verification's performed.
Vendor tax
The VCT amount must be provided at the invoice level. A VCT amount provided at the line level isn't considered for VCTV processing.

This article applies to:

  • Product: ONESOURCE Determination, ONESOURCE Indirect Tax