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VCTV examples for invoice total tax and fees and seller use tax

Invoice total tax and fees

The Vendor Charged Tax Verification (VCTV) examples include only the tax amounts. When a transaction gets processed using the VCTV feature both the invoice total tax and the total fees are included. For example, accrued amounts always include the total tax and, if applicable, fees for the invoice.

Seller use tax compared to buyer use tax for U.S. transactions

Jurisdictions may have lower buyer use tax rates than seller use tax rates. By default, the system uses the seller use tax rate to calculate the tax liability (except for instances that involve direct pay permits or an invoice with no tax amount). If you want to use the lower tax rates when calculating tax liability, select the Choose Buyer use tax instead of Seller use tax (US Only) option in your VCTV settings.
For example, the seller use tax rate is 9.5%  and the buyer use tax rate is 8.5%. The total gross amount for a transaction is $5,000.00. If you select the Choose Buyer use tax instead of Seller use tax (US Only) option, the tax liability for the transaction's $425. If you cleared the Choose Buyer use tax instead of Seller use tax (US Only) option, the tax liability for the transaction's $475.00.

This article applies to:

  • Product: ONESOURCE Determination, ONESOURCE Indirect Tax