Inclusive Taxes

The gross amount submitted to Determination for a transaction may include certain taxes, depending on various factors. Factors range from the type of business (VAT Retail), customer, location (EU), authority (Brazil PIS/COFINS/ICMS) and business model (Purchases or Imports), each of which can drive tax-inclusive pricing.

Determination can be configured to account for inclusive taxes, primarily by setting the calculation method on desired rules to one of the four inclusive types:

• Inclusive Tax (Fee): An inclusive fee that, once determined, is subtracted from the gross amount for the line so that additional calculations do not result in an additional tax on the fee amount.
• Inclusive Tax (Fee on Quantity): An inclusive fee that, once determined, is subtracted from the gross amount for the line so that additional calculations do not result in an additional tax on the fee amount.
• Inclusive Tax (Rate): An inclusive tax that, once calculated, is subtracted from the gross amount for the line so that additional calculations do not result in an additional tax on the inclusive tax.
• Inclusive Tax (Brazil only): An inclusive tax that affects calculation of all Determination-supported Brazilian taxes. It indicates that the tax amount for that authority is already included in the gross amount.

You can use rule qualifiers to fine-tune the selection of a rule containing an inclusive tax method, based on such factors as exemption certificate number or license data.

XML Overrides of a Matching Rule

Using the <INCLUSIVE_TAX_INDICATORS> input XML elements at both the Invoice and Line levels, you can override settings found on a matching rule, using one of these two means:

• <FULLY_INCLUSIVE> specifies that any authority and any rule matched by this invoice or line is considered as an inclusive tax calculation.
• <AUTHORITY_TYPE> specifies one or more authority types (such as VAT, Excise, etc.) to be considered as inclusive if the selected authority maps to that authority type.