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About inclusive taxes

The gross amount submitted to Determination for a transaction may include certain taxes, depending on various factors. Factors range from the type of business (VAT Retail), customer, location (EU), authority (Brazil PIS/COFINS/ICMS) and business model (Purchases or Imports), each of which can drive tax-inclusive pricing.
Determination can be configured to account for inclusive taxes, primarily by setting the calculation method on desired rules to one of the four inclusive types:
  • Inclusive Tax (Fee):
     An inclusive fee that, once determined, is subtracted from the gross amount for the line so that additional calculations don't result in an additional tax on the fee amount.
  • Inclusive Tax (Fee on Quantity):
     An inclusive fee that, once determined, is subtracted from the gross amount for the line so that additional calculations don't result in an additional tax on the fee amount.
  • Inclusive Tax (Rate):
     An inclusive tax that, once calculated, is subtracted from the gross amount for the line so that additional calculations don't result in an additional tax on the inclusive tax.
  • Inclusive Tax (Brazil only):
     An inclusive tax that affects calculation of all Determination-supported Brazilian taxes. It indicates that the tax amount for that authority's already included in the gross amount.
note
You can use rule qualifiers to fine-tune the selection of a rule containing an inclusive tax method, based on such factors as exemption certificate number or license data.

XML overrides of a matching rule

Using the <INCLUSIVE_TAX_INDICATORS> XML input elements at both the invoice and line levels, you can override settings found on a matching rule, using one of these 1 means:
  • <FULLY_INCLUSIVE> specifies that any authority and any rule matched by this invoice or line's considered as an inclusive tax calculation.
  • <AUTHORITY_TYPE> specifies one or more authority types (such as VAT, Excise, etc.) to be considered as inclusive if the selected authority maps to that authority type.

This article applies to:

  • PRODUCT: ONESOURCE Determination,ONESOURCE Indirect Tax
  • Subject: Authorities