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

[john.glaubitz@vertexinc.com]

Sorry as well for the late response to this question.  There has been some
discussion regarding this on the TaxXML list, but I don't believe the
comments made it back to you, so I'll try to combine some thoughts.

First of all, you are correct in your interpretation of the way that TaxXML
views what it terms a Tax Category.  It could be described as a
categorization of the goods and/or services involved in the transaction.
In UBL's Tax Category, the term may be described as a categorization of the
tax result that was determined on the goods and/or services involved in the
transaction.  A subtle but critical difference.  I suspect that both may
need to be included since we want to make sure there's a place to put any
and all relevant information.  This is as much as anything because the
(tax) rules for this will vary from jurisdiction to jurisdiction and from
tax to tax.

Also, since the determination of tax may need to occur at various points
along the supply chain, not only to include on the invoice for example, but
to verify the tax on the invoice by the customer, any relevant details that
were used to determine that tax should included.  however, the category of
the goods and/or services involved may not always be available or required.

I suppose the next question is how Tax Scheme is defined since the "scheme"
may depend on the goods/services category involved resulting in a
particular tax category and rate where applicable.  So an example may be
the Canadian Childrens Clothing GST Tax Scheme that results in a
Non-taxable Tax Category.

Does this sound like a correct interpretation of Tax Scheme?

- John



                                                                                                                                        
                      Tim McGrath                                                                                                       
                      <tmcgrath@portcom        To:       swebb@gefeg.com                                                                
                      m.com.au>                cc:       ubl@lists.oasis-open.org, tax@lists.oasis-open.org                             
                                               Subject:  [tax] Re: [ubl] Comments from Tax XML on Invoice and Small Business Subset     
                      08/29/2005 03:20          submission - Tax Category                                                               
                      AM                                                                                                                
                                                                                                                                        
                                                                                                                                        




Sorry it has taken me a while to get around to this.  Somehow it just kept
slipping through my intray!

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 Greens 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.

--
regards
tim mcgrath
phone: +618 93352228
postal: po box 1289   fremantle    western australia 6160

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