Re: [tax] Re: [ubl] Comments from Tax XML on Invoice and Small Business Subset submission - Tax Category

["Andrew Webber" <awebber@wwwebbers.com>]

I'm going to throw this out as a starting point, not as an answer
(i.e. I'm not sure it's right ;).

As I understand it, we didn't (and don't) seek to specify how our
models will be implemented, rather we want to make sure there's a
place to put the information.  This is as much as anything because
the (tax) rules for this will vary from jurisdiction to
jurisdiction and from tax to tax.

For example, I believe children's clothing is exempt from
provincial tax in Ontario, but as a consumer I've never seen the
reason specified on an invoice.  OTOH, our (TASC's) research
suggested that the Arizona Tire Tax had to be specified as a
separate item on an invoice.  In the former case, the "tax
category" might be "non-taxable", in the latter case, "Tire Tax Per
Tire" (or "Tire Tax Percentage" since this is the one that can be
either, depending on the nature of the transaction)?

Even the latter example could be a category in UBL as I understand
Tim's explanation, so the gap seems minor or non-existent.  Or is
it more complex than I think?

=aw


On Mon, 29 Aug 2005 15:20:03 +0800, Tim McGrath wrote:

>I can see from the submission that TaxXML define item tax 
>category as: "A categorization or classification of items 
>that may be used to identify items from the perspective 
>of determining tax liability. For example, items 
>categorized as clothing may be subject to a standard tax 
>rate in a particular jurisdiction, however a sub category 
>of clothing, such as children's clothing may be nontaxable 
>or zero-rated, while another sub category such as luxury 
>clothing, for example furs, could have a surcharge or 
>higher tax rate."
>
>UBL has used Tax Category as :
>"information directly relating to a specific tax category". 
>For example, "ZeroRatedGoods" "NotTaxable" "Standard Rate".
>
>With UBL it is, in fact, the Tax Category the is used for 
>the actual charges.
>
>In other words UBL sees Tax Category as a subset of a Tax, 
>whereas i think TaxXML see it as a subset of an Item (or 
>classification of an Item).
>
>So where UBL may have a Tax Category value of 
>"ZeroRatedGoods", TaxXML would expect to see values like 
>"Children's Clothing".  
>
>Is that correct?
>
>Is it that UBL assumes the taxability assessment has been 
>done and TaxXML  simple provides the raw information?
>
>Clearly there is a relationship between these two and we 
>should decide how to model them.
>
>
>Sylvia Webb wrote:
>
>> 3) For the UBL Invoice, they would like further 
>> information on our definition of Tax Category and 
>> Item Tax Category.  After studying Stephen Green's 
>> questions, and the UBL issues list, it does not 
>> appear that their definition for these items is 
>> the same as UBL's.  Upon receipt of this additional 
>> information, they will answer Stephen's questions 
>> and submit additional comments.



andrew [awebber@wwwebbers.com]
ph 613-797-8123
fx 831-300-4097
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