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Table of Contents

1. Purpose of the document ............................................................................................................................................... 2

2. Assumptions and Prerequisites ....................................................................................................................................... 2

3. Feature Specific Setup..................................................................................................................................................... 3

Legal Reporting Unit Tax Profile Registration ..................................................................................................................... 3

Customer Party Tax Profile Registration ............................................................................................................................. 5

Taxes ................................................................................................................................................................................... 6

Tax Reporting Types and Codes .......................................................................................................................................... 6

Tax Status ............................................................................................................................................................................ 8

Tax Determining Factors ..................................................................................................................................................... 9

Tax Status Rules ................................................................................................................................................................ 10

4. Transaction Entry in Fusion Receivables ....................................................................................................................... 11

5. Reporting ....................................................................................................................................................................... 12

Report Submision .............................................................................................................................................................. 12

Creating a csv file .............................................................................................................................................................. 13

Reviewing the pdf Output ................................................................................................................................................. 14

6. Appendix ....................................................................................................................................................................... 15

VAT Reporting for the UK

Fusion Financials for EMEA

ERP CLOUD

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1. Purpose of the document

This document explains the implementation and usage guidelines for the “Reverse Charge Sales Listing Report for UK”,

using an end-to-end flow example. Details provided include pre-requisite setup, important transaction entry aspects,

and report output details.

The report provides a record of UK sales for the high value electronic goods subject to the reverse tax charge reported

to HMRC (HM Revenue & Customs). In particular, the specified goods to which the reverse charge applies are :

Mobile telephones

Integrated circuit devices, such as microprocessors and central processing units, in a state prior to integration into end user products

Emissions allowances, emissions reduction units and emissions reduction certificates

The reverse charge only applies to the sale and purchase of specified goods and services:

Between UK tax registered organizations

For goods, where the VAT exclusive value of the supply is above the £5,000.00 threshold, and

Where the goods and services are bought and sold for business use

The “Reverse Charge Sales Listing Report for UK” considers the sales side only. It is the responsibility of the customer, rather than the supplier, to account to HM Revenue and Customs (HMRC) for VAT on supplies of the specified goods or services.

Further details can be found on the HMRC web site. Refer to the appendix.

2. Assumptions and Prerequisites

In this document, the following entities are assumed to have already been set up :

Data Security

Geographies

Enterprise Structure

Tax Regime to Rate setup

Tax Party Profiles

Tax Rules

Customers

Common Options for Payables and Receivables

Receipt Classes and Methods

It is recommended that the ‘Implementation Project’ is complete for your organization before commencing the ‘Feature

Specific Setup’ outlined below. If you require further details, refer to the Appendix.

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3. Feature Specific Setup

Setup the following, prior to running the “Reverse Charge Sales Listing Report for UK” report.

Legal Reporting Unit Tax Profile Registration

The ‘Legal Reporting Unit’ tax profile needs to be setup as ‘Self Assessment’, so that the tax is calculated correctly for UK

Reverse Charges. Register the Legal Reporting Unit tax profile for ‘Self Assessment’ on the ‘Tax Registration’ :

Task name: Manage Party Tax Profiles

Navigation : Navigator –> Setup and Maintenance -> Manage Party Tax Profiles

Search For : Legal Reporting Unit Tax Profiles

Search for the specific Legal Reporting Unit value that corresponds to the Legal Entity used on Fusion Receivables

invoices for which self-assessed tax is to be applied.

Review the ‘Tax Registrations’ Tab on the existing Legal Reporting Unit Tax Profile selected. Create a tax registration for your UK tax regime if you have not done so already.

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Once the tax registration record has been defined, place your cursor on the Tax Regime Code for which self-assessed tax

is desired. Then, select ‘View Registration Details’.

In the Edit Tax Registration page, confirm the ‘Set as self-assessment (reverse charge)’ Checkbox is ‘checked’

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Customer Party Tax Profile Registration

Reverse Charges for the UK require customers to be registered. The registration numbers are then displayed in the

report. Create customers and ensure the ‘Registration Number’ is entered for the third party site tax profile.

Task name: Manage Party Tax Profiles

Navigation : Navigator –> Setup and Maintenance -> Manage Party Tax Profiles

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Taxes

Setup the VAT tax for the UK Tax Regime. This is needed for the tax status code setup.

Task name: Manage Taxes

Navigation : Navigator –> Setup and Maintenance -> Manage Taxes

Tax – GB VAT

Tax Rate - Customer to pay VAT to HMRC at the rate of 20% of the VAT exclusive selling price for reverse charge goods.

Tax Reporting Types and Codes

Tax Reporting Types and codes are required to identify your reverse charge transactions. The report will then display the transactions for your Tax Reporting Type and Code combination.

Task name: Manage Tax Reporting Types

Navigation : Navigator –> Setup and Maintenance -> Manage Tax Reporting Types

Enable the ‘Tax status’ reporting type use

Assign the ‘Tax Reporting Code’ to the ‘Tax Reporting Type’

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Tax Status

The tax status is used to represent the VAT for the UK tax regime. It is also necessary to attach the tax reporting codes

for the reverse charges, so that the transactions can easily be identified for reporting purposes.

Task name: Manage Tax Statuses

Navigation : Navigator –> Setup and Maintenance -> Manage Tax Statuses

Tax Status Code – GB_UK_MTIC_ZERO_RATE

Attach the ‘Reporting Type Code’ to the ‘GB UK Missing Trader Intra community Zero Rate with Reverse Charge’

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Tax Determining Factors

The Tax Determining factors are required to automatically apply the correct tax rule for the Receivables transactions.

This will ensure that the transactions are identified as being applicable to ‘Reverse Charges’

Task name: Manage Determining Factor Sets

Navigation : Navigator –> Setup and Maintenance -> Manage Determining Factor Sets

Determining Factor Set Code – GBMTIC NEW ZERO NO INV

Configure the tax determining factors and assign the Reverse Charge tax combinations when the following are true:

‘Ship to’ and ‘Ship from’ is located in the UK

Defined Product Category is added to Receivables transaction

The customer is registered within the Party Tax Profile

The transaction contains the correct Business Transaction Category Screens below demonstrate the configuration in the Fusion Financials for the determining factors:

Navigation: Setup and Maintenance > Manage Tax Condition Sets

Condition Set Code - GBMTIC NEW ZERO NO INV

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Tax Status Rules

The Tax Status Rules are required to attach the tax condition set for rule derivation.

Setup a tax status rule and attach the tax condition set.

Navigation : Setup and Maintenance > Manage Tax Rules

Rule Code - GBMTIC ZERO RATE NEW AR

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4. Transaction Entry in Fusion Receivables

Enter Fusion Receivables transactions, paying particular attention to the following.

Task name: Create Transaction

Navigation : Navigator –> Receivables Billing -> Create Transaction

Create invoices for your Business Unit, ensuring you:

Select your ‘Legal Entity’ in the ‘Miscellaneous’ tab.

Enter the ‘First-Party Tax Registration Number’

The ‘Product Category’ and ‘Transaction Business Category’ are selected

‘Complete’ the invoice.

Transactions entered in Fusion Receivables will be represented in the report output with the following characteristics :

Rounded to nearest Pound

Credit transactions are added to the month of the transaction date

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Discounts are applied to transaction when the receipt is entered

5. Reporting

Report Submision

The Process for submitting the ‘Reverse Charge Sales Listing Report for UK’ is as follows:

Navigation : Navigator –> Tools -> Scheduled Processes

Schedule the process ‘Reverse Charge Sales Listing Report for UK’

The following are mandatory parameters:

Legal Entity

Tax Registration Number

Tax Reporting Type

Tax Reporting Code

Optionally, enter the ‘Tax Point Date’ range for the dates that you want to report on. It is usual to run the report for a

calendar year. To run for a year:

Enter ‘1 Jan YY’ for the ‘From Tax Point Date’

Enter ’31 Dec YY’ for the ‘To Tax Point Date’

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Creating a csv file

HRMC state that you may either enter the information directly on-line or you can upload a comma separated values

(CSV) file.

The report output can be created in .csv format. To achieve this :

Click the ‘Advanced’ button

Select the ‘Output’ tab

Select the ‘U.K. Reverse Charge Sales List Report CSV’ Layout.

Select the ‘Format’ of ‘Text’

Submit the Report

Save the output file as a csv file.

In the example above, the Invoice Amount of £11,414.00 is highlighted.

To verify the content, submit the report using pdf or html format, using the ‘U.K. Reverse Charge Sales List Report’

Layout.

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Reviewing the pdf Output

The report output in pdf format consists of :

A cover page, showing the report parameters

The listing of the invoices for each customer and period.

In the example above, the Invoice Amount of £11,414.00 is highlighted. The report declares the whole pound amount

only, and you rounds to the nearest pound.

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6. Appendix

Here are some useful information sources to assist with the implementation :

Reverse Charges HMRC

The web site provide details on the reverse charge process.

Oracle Enterprise Repository (Financial Report Listing)

The OER provides content relating to the report parameters and sample report output. Log in as ‘guest’ from

OER first.

Oracle Financials Cloud Release 9 (Get Started)

The web site contains links to subscriptions, understanding Oracle Financials Cloud and Implementation advice.

Oracle Fusion Financials Cloud Release 9 What’s New

This document contains additional information relating to this feature and other Fusion Financials features and

capabilities.

Enterprise Resource Planning Release Readiness for Financials Release 9

The web site contains links to spotlights, release content documents, product documentation and training.

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