Skip to main content

Solutions

Products

Recommended products

Questions? We are here to help.
Contact us

Purchase

Questions? We are here to help.

Resources

Authorities

Rates and fees

Determination tax data includes rates and fees for each tax authority. It applies these rates and fees to documents using one or more tax rules. You can add custom rates, fees, and rules to either standard or custom authorities to meet your specific business requirements.

Rate and fee types

You can specify basic, graduated, and tiered rates or fees.
  • A
    basic rate
     applies a percentage to the taxable amount of a transaction. A basic rate can also apply a minimum amount.
  • A
    basic fee
     applies a specific amount to a transaction. You can set the fee to remain constant (regardless of quantity) or multiply it by the item quantity.
  • Graduated rates or fees
     apply a single rate or fee to the entire transaction based on the invoice amount, item amount, or quantity. For example, the system may tax 99 widgets at 3% and 500 widgets at 2%.
  • Tiered rates
     apply different rates to portions of a transaction (based on invoice amount, item amount, or quantity). For example, the system may tax widgets 1–99 at 3%, 100–499 at 2.5%, and 500+ at 2%.

Unit of measure conversions

When a transaction uses a different unit of measure than the fee specifies, Determination converts units before it evaluates quantity tiers.
For example, if a transaction lists 500 liters and the tiered fee uses gallons, Determination converts liters to gallons before it selects the correct tier.

Cascading rate

Cascading rates let tax administrators create and configure rates that apply to all authorities of a common tax type at the same level in the zone tree. This feature enables you to manage tax rates efficiently across multiple jurisdictions.
Key capabilities:
  • You can create cascading rates for both standard rates and fees.
  • The rate and fee create/edit page shows a
    Cascading
     checkbox.
  • The system clearly labels cascading rates in dropdowns and lists.
Use cascading rates in rules:
  • You can select cascading rates when you create or edit custom rules.
  • When you select a cascading rate in a rule, the system automatically checks and clears the
    Cascading Rule
     checkbox.
  • The rules page places the
    Cascading Rule
     checkbox following the rate and fee code selection.
Scope of application:
  • If you don’t select an authority type in the rule, the cascading rate applies to all authorities under the current jurisdiction level.
  • If you select an authority type, the cascading rate applies to all authorities of that type under the current jurisdiction level.
  • The feature supports both standard and custom authorities.
  • If a rate or fee is in use, the system disables its
    Cascading
     checkbox to prevent changes.

This article applies to:

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