Transcript ORACLE VAT Seminar - Cardiff University

Oracle VAT Seminar
Louise Dunbar
Finance Division
[email protected]
October 2010
Contents
1.
Introduction to VAT
2.
The University and VAT in Oracle
3.
Purchasing in Oracle
a. “VAT TREATMENT” field
b. “PRIMARY INTENDED USE” field: Recoverable
VAT
c. European Suppliers and INTRASTAT
4.
Income
5.
VAT Rate change 4th January 2011
1. Introduction

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
2. Cardiff University and VAT
http://www.cf.ac.uk/fince/servicesstaff/corporatefinancialservices/vat_1/index.html
Partial Exemption
Teaching Income
EXEMPT
e.g. Tuition Fees,
Short Courses,
Conferences
Income
Research Income
VATABLE
e.g. Industry
Funded
Research
NON-VATABLE
e.g. Research
Council Grants,
Charity Funded
Research
Other Income
VATABLE
e.g. Services
Rendered Contracts,
Sale of Goods
Industrial CASE
Awards, Graduation
NON-VATABLE
e.g. Room hire,
Donations,
Structural funds
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”
3a. Oracle and VAT – “VAT Treatment” field
denotes treatments generating Zero Rating Certificates
Used for books/public transport/printing where no certificate
required
Iprocurement Example

Example 1
Booking a Hotel Room
Logged in as the iprocurement Approver
Finally – Approver can view the VAT element
Example 2 – Equipment Zero Rating
Input the relevant details and Add to Cart
View Cart and Checkout
Checkout
By entering CU% in the VAT Treatment field
“VAT treatment” fields
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
Projects Set up
Example 3 – VAT recoverable activity
Finally – view the Recoverable VAT element
3c Purchasing from the European Community
http://www.cf.ac.uk/fince/resources/VAT%20Guidance%20-%20Purchasing%20from%20the%20EU.pdf
Country
Code Country
Code
Country
Code
Austria
AU
Germany
DE
Neth’lands
NL
Belgium
BE
Greece
GR
Poland
PL
Bulgaria
BG
Hungary
HU
Portugal
PT
Cyprus
CY
Irish
Republic
IR
Romania
RO
Czech
Republic
CZ
Italy
IT
Slovakia
SK
Denmark
DK
Latvia
LV
Slovenia
SI
Estonia
EE
Lithuania
LT
Spain
ES
Finland
FI
Lux’bourg
LU
Sweden
SE
France
FR
Malta
MT
United
Kingdom
GB
INTRASTAT
SCHOOL
ORDER NUMBER
SUPPLIER NAME
EU COUNTRY
Have you supplied a Zero Rated
Certificate with this order
Nominal Ledger Code for Payment
HMRC Commodity Code
UK Trade Info : ICN Online Application
Item Description for HMRC Verification of
Commodity Code
Weight of Goods (in Kgs)
Total Cost of Order (estimate if invoice not
yet received)
Contact Details :
Name
Extension Number
YES or NO
(delete as appropriate)
4. Income
Income
Teaching Income
EXEMPT
e.g. Tuition Fees,
Short Courses,
Conferences
Research Income
VATABLE
e.g. Industry
Funded
Research
NON-VATABLE
e.g. Research
Council Grants,
Charity Funded
Research
Other Income
VATABLE
e.g. Services
Rendered Contracts,
Sale of Goods
Industrial CASE
Awards, Graduation
NON-VATABLE
e.g. Room hire,
Donations,
Structural funds
Sales Invoice Requests
The following activities are subject to VAT at Standard Rate but
are often incorrectly treated on the Invoice Request:
1.
Graduation Ceremonies
2.
Sponsorship Income, where sponsor is not simply donating
money
3.
Industrial CASE studentships
4.
Services supplied to non-eligible bodies
5.
Sale of second hand goods
The following activities should be EXEMPT from VAT
1.
Short Course or Conference Income
2.
Request for Donation from a business
Sales Invoices and the EC
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
1.
2.
email [email protected] with specific queries
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