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Oracle VAT Seminar

Oracle VAT Seminar. Louise Dunbar Finance Division dunbarla@cardiff.ac.uk October 2010. Contents. Introduction to VAT The University and VAT in Oracle Purchasing in Oracle “VAT TREATMENT” field “PRIMARY INTENDED USE” field: Recoverable VAT European Suppliers and INTRASTAT Income

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Oracle VAT Seminar

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  1. Oracle VAT Seminar Louise Dunbar Finance Division dunbarla@cardiff.ac.uk October 2010

  2. Contents • Introduction to VAT • The University and VAT in Oracle • Purchasing in Oracle • “VAT TREATMENT” field • “PRIMARY INTENDED USE” field: Recoverable VAT • European Suppliers and INTRASTAT • Income • VAT Rate change 4th January 2011

  3. Value Added Tax (VAT) There are three rates of VAT The rates are: standard – currently 17.5% (20% from 4thJanuary 2011) reduced – 5% zero – 0% There are also some goods and services that are: exempt from VAT outside the scope of VAT Output / Input VAT 1. Introduction

  4. 2. Cardiff University and VAThttp://www.cf.ac.uk/fince/servicesstaff/corporatefinancialservices/vat_1/index.html

  5. Partial Exemption

  6. Oracle Tax Engine The tax engine looks at The Supplier location & tax set up AND The Customer location & tax set up before determining the tax rate to apply which in Oracle becomes the “VAT Treatment” http://www.cf.ac.uk/fince/servicesstaff/corporatefinancialservices/vat_1/index.html “VAT GUIDANCE – purchasing in Oracle”

  7. 3a. Oracle and VAT – “VAT Treatment” field denotes treatments generating Zero Rating Certificates Used for books/public transport/printing where no certificate required

  8. Iprocurement Example • Example 1Booking a Hotel Room

  9. Logged in as the iprocurement Approver

  10. Finally – Approver can view the VAT element

  11. Example 2 – Equipment Zero Rating

  12. Input the relevant details and Add to Cart

  13. View Cart and Checkout

  14. Checkout

  15. By entering CU% in the VAT Treatment field

  16. “VAT treatment” fields

  17. 3b “The Primary Intended Use” field: when VAT is recoverable This field should NOT be used UNLESS you are instructed to do so by Finance or RACDV for a particular School/Division Activity

  18. Projects Set up

  19. Example 3 – VAT recoverable activity

  20. Finally – view the Recoverable VAT element

  21. 3c Purchasing from the European Community http://www.cf.ac.uk/fince/resources/VAT%20Guidance%20-%20Purchasing%20from%20the%20EU.pdf

  22. INTRASTAT

  23. 4. Income

  24. Sales Invoice Requests The following activities are subject to VAT at Standard Rate but are often incorrectly treated on the Invoice Request: • Graduation Ceremonies • Sponsorship Income, where sponsor is not simply donating money • Industrial CASE studentships • Services supplied to non-eligible bodies • Sale of second hand goods The following activities should be EXEMPT from VAT • Short Course or Conference Income • Request for Donation from a business

  25. Sales Invoices and the EC

  26. VAT increase 4th January 2011 • 20% Rate on all VAT invoices issued on or after 4th January 2011 AND issued within 14 days of the transaction. • If the transaction was performed BEFORE 4th January 2011, VAT may be charged at 17.5%. • Recommend: • Purchasing - Place orders and receipt goods/services prior to 4th January 2011 • Sales – Invoice clients prior to 4th January for work done to avoid queries email vat@cardiff.ac.uk with specific queries

  27. Review • The University and VAT in Oracle • Purchasing in Oracle • “VAT TREATMENT” field • “PRIMARY INTENDED USE” field • European Suppliers and INTRASTAT • Income • VAT Rate change 4th January 2011

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