Re: [ubl-psc] Groups - UBL/Tax XML Planning Meeting added

[john.glaubitz@vertexinc.com]

Tim,

Since we weren't able to discuss your latest model during the call last
week, I'll include some questions and comments here.

First of all, I agree that much of the confusion was a result of the Tax
Category being associated with an Item.  Adding Tax Classification as a way
to classify items independent of their participation in a transaction is
what TaxXML had in mind for Item Tax Category (I have no problem with the
alternate name).  Also, you may want to consider including an attribute for
a classification code such as the harmonized code or other coding scheme.

However, I'm still not sure that I understand how you've described Tax
Category.  The examples for Tax Category listed below; "Zero-Rated Goods",
"NonTaxable" and "Standard Rate" are important descriptions that should be
included to qualify the tax information, but I don't see how the attributes
in Tax Category are appropriate.  Your description of Tax Category says "
this may be only indicative, the actual rate [or] other caluculation
attributed to an item is dependent on the tax jurisdiction".  I would think
that the invoice should include the details of the actual tax imposed
rather than what's indicative.  This tax could be categorized by Tax
Category as appropriate, but the category would be just that and not
include the tax rates which are dependant on the context.  Here's a rough
alteration of your diagram to show what I have in mind:

(Embedded image moved to file: pic00292.jpg)


By the way, I may still not fully understand Tax Scheme, but for my
interpretation I would expect that the Jurisdiction is a necessary
attribute as well as the name of the tax that's imposed.  Any further
clarification on this would be appreciated.

I look forward to any further discussion on these topics.

Regards,

John Glaubitz
-----Tim McGrath <tmcgrath@portcomm.com.au> wrote: -----

To: swebb@gefeg.com
From: Tim McGrath <tmcgrath@portcomm.com.au>
Date: 11/08/2005 03:29AM
cc: ubl-psc@lists.oasis-open.org, John.Glaubitz@vertexinc.com,
Andy@gid.co.uk
Subject: Re: [ubl-psc] Groups - UBL/Tax XML Planning Meeting added

In preparation for this meeting I thought it might be useful to revisitthe
question of UBL's Tax Category and the Tax Item Category requestedby
TaxXML.

My suggestion is that we leave the current UBL Tax Category to be
thecategorization of the tax to be applied.  This is defined as "
thecategory of the tax and, by implication, the tax rate or other
taxcalculation that applies. This may be only indicative, the actual rateof
other calculation attributed to an item is dependent on the
taxjurisdiction."  For example, "ZeroRatedGoods" "NotTaxable""Standard
Rate" are tax categories.

However, this is not currently used correctly.  In UBL 1.0 we have
TaxCategory associated with Item.  In fact, it should be associated
withInvoice Line.  That is, the Tax Category (as we define it) is
dependenton the transaction NOT the Item.  The same Item (e.g. a computer)
canattract different Tax Categories depending on who buys it and what
thecircumstances of the sale are.  So it should be Invoice Line ->
TaxCategory.

I suspect this is what led to the confusion.  our "Tax Category" wasneither
one thing or the other.

So, I also propose we introduce a "Tax Classification" ABIE (that isthe
equivalent of the Tax XML Item Tax Category).  (I suggest changingthe
TaxXML term "category" to "classification" toline up with other
classification schemes proposed for UBL 2.0.)

This would be defined as "Aclassification of items that may be used to
identify itemsfrom the perspective of determining tax liability." For
example,itemsclassified as clothing may be subject to a standard tax rate
in aparticularjurisdiction, however a sub classification of clothing, such
aschildren's clothingmay be nontaxable or zero-rated, while another sub
classification suchas luxuryclothing, for example furs, could have a
surcharge or higher tax rate.

It is this Tax Classification that should be associated with an Item. The
classification is always the same for this Item regardless of
thetransactions it participates in. In this way Item -> TaxClassification
should replace Item->Tax Category.

As far as what Tax Classification should look like, its only
identifiedproperty (from the TaxXML paper) is a Name but it also has
anassociation with Tax Category to set default tax rates for a given
TaxScheme.  From  the example given these classifcation are
hierarchical(has sub-classifications) as well.

I have drafted a rough diagram of what the current and proposed modelswould
look like. (see attached).

Perhaps we can discuss these on the call Wednesday.

swebb@gefeg.com wrote:
      Due to the regularly scheduled UBL call at 16:00 UTC, and a calendar
      mixupon my part, this meeting will need to conclude promptly at 15:30
      UTC/10:30EST/7:30 PST. -- Ms. Sylvia WebbUBL/Tax XML Planning Meeting
      has been added by Ms. Sylvia WebbDate:  Wednesday, 09 November
      2005Time:  03:00pm - 03:30pm GMTEvent
      Description:#############################################   STANDING
      INFORMATION FOR UBL CONFERENCE CALLS   U.S. domestic toll-free
      number: (866)839-8145   Int. access/caller paid number: (865)524-6352
      Access code: 5705229
      #############################################Agenda:Discuss how UBL
      PSC and Tax XML can collaborate for UBL 2.0 content.Minutes:View
      event details:
      http://www.oasis-open.org/apps/org/workgroup/ubl-psc/event.php?event_id=8904
      PLEASE NOTE:  If the above link does not work for you, your
      emailapplication may be breaking the link into two pieces.  You may
      be able tocopy and paste the entire link address into the address
      field of your webbrowser.
      BEGIN:VCALENDARMETHOD:PUBLISHVERSION:2.0PRODID:-//Kavi
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      CalendarBEGIN:VEVENTCATEGORIES:MEETINGSTATUS:TENTATIVEDTSTAMP:20051107T000000ZDTSTART:20051109T150000ZDTEND:20051109T153000ZSEQUENCE:0SUMMARY:UBL/Tax
 XML Planning
      MeetingDESCRIPTION:#############################################\n
      STANDING INFORMATION  FOR UBL CONFERENCE CALLS\n   U.S. domestic
      toll-free number:  (866)839-8145\n   Int. access/caller paid number:
      (865)524-6352\n    Access code: 5705229\n
      #############################################\n\nGroup: UBL
      Procurement SC\nCreator: Ms. Sylvia WebbURL:
      http://www.oasis-open.org/apps/org/workgroup/ubl-psc/event.php?event_id=8904
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-- regardstim mcgrathphone: +618 93352228  postal: po box 1289   fremantle
western australia 6160DOCUMENT ENGINEERING: Analyzing and Designing
Documents for Business Informatics and Web Services
http://www.docengineering.com/

pic00292.jpg