Tax Summary

ONESOURCE Indirect Tax Determination summarizes tax results at the line level in output XML and stores the data in the audit schema of your database. Line-level summaries are useful in some ERP integrations (such as Oracle and SAP), reports, and returns processing.

The line-level summary includes the following:

  • The taxable basis and exempt amount in the tax block, as well as the non-taxable amount.
  • Data such as the maximum taxable basis, exempt amount, total tax rate, effective tax rate, and other data.
  • Where currency applies, it is the currency of the document.

There is no special handling for reverse-from-tax or reverse-from-total. The data from the source system must provide an accurate gross amount in order for the taxable basis to be correctly calculated.

A brief explanation of tax summary XML elements follows.

  • The taxable basis is set at the tax line level; if the authority is fully exempt, the taxable basis is zero.
    • Taxable basis contains the maximum taxable basis from the amount of the authority tax lines.
    • If an authority tax line is a tier, then all tiers for that authority have their taxable basis summed and treated as a single tax line for the purpose of determining the maximum taxable basis.
    • If the total exceeds the gross amount, the taxable basis is set at the gross amount.
  • The non-taxable basis contains the maximum non-taxable basis from the tax results, including tiered results. If the non-taxable basis percent is less than 100%, this element is calculated as (1 - basis percent) * gross amount.
  • The exempt amount is set at the tax line level; if the authority is flagged as fully exempt from the rule or there is an exempt certificate, this tag shows the basis for the exemption.
  • The tax rate is the sum of all tax rates; no special treatment is applied for rates from tiers. If all taxes are fees, the value of this element is zero.
  • The effective tax rate is the total taxes on the line divided by the maximum taxable basis.
  • The advisories contain elements for allocations, custom authorities, fees, tiers, and variable exempt amounts.

In all cases, if the XML element has no tax results, the value of the element is zero.

In some cases, a Tax Rate and Effective Tax Rate are both included in the Tax Summary. When the Tax Summary includes VAT for the input and output, a tax amount is included in the tax block, thus giving different tax rate and effective tax rates when an input and output result is returned for the same transaction.

Advisories notify you of special summary conditions that may produce unexpected results. You may get a different effective or total tax rate than you expected if you have allocations or tiers because various authorities are taxed at different percentages or amounts.

For more information, see Line and Allocation Line Level Output XML Elements.