Supplier Management

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Topic

    Sem van Donk
    Taxpayer ID on address level
    Topic posted October 21, 2019 by Sem van Donk, tagged Supplier Creation, Supplier Profile Management, Supplier Registration, White Paper 
    32 Views, 2 Comments
    Title:
    Taxpayer ID on address level
    Summary:
    Taxpayer ID on address level
    Content:

    Hi Community,

    We are having some issues with storing the Taxpayer ID which is required for certain reports of tax authorities on the profile level, and would like to know if there are users with experience where different addresses in the supplier model have their own Taxpayer ID. 

    The situation:

    We are buying products at different companies throughout Europe. Some organizations that we do business with have multiple locations, for example 1 per country, while operating in 3 different countries. For these locations, the supplier makes use of different VAT registration and do business with the particular business unit (from our side) in the corresponding countries (Supplier X, address NL --> business unit NL). From our perspective, as a client of this specific supplier operating in three countries, we see the different supplier locations as 1 main supplier, with whom, as a global company we do business with, meaning price agreements on a global scale and specific services services, eventhough this supplier has different registrations and tax details for the various locations. Long story short, to be able to help the procurement department, we would like to be able to see in one glimpse, what we, eventhough from different business units, buy as a company from this supplier. Which is why we want to store the different locations/addresses underneath one supplier profile. 

    In the below overview you see a table of the sketched situation;

    PartyID

    Profile

    Taxpayer ID

    Address

    VAT-number (connected to address)

    Site

    X

    Company X

     

    Address NL

    NL122225B01

    Procurement BU from NL

     

     

     

     

     

    Procurement BU from BE

         

    Address PL

    DE1225552

    Procurement BU from PL

       

    55445554

    Address ESP

    ES111125556

    Procurement BU from ES

     

    Now the problem arises, for the supplier data we need to provide in the system, we have the ability to store tax related matters on different levels. However, not all tax details can be stored everywhere, we have VAT registrations on Address level (per location) and Taxpayer ID is forced to profile level (1 for all locations) for the SII VAT filling report in Spain. 

     

    The case:

    For the, in the table above, mentioned supplier, the Spanish tax authorities wants us to provide a different tax ID next to the existing VAT registration in the VAT filing, or near real time VAT reporting (SII). In Oracle we can enable this reporting and filing by filling the Taxpayer ID (only possible on profile level for SII reporting as per an oracle whitepaper https://cloud.oracle.com/opc/saas/datasheets/online-vat-spain-topical-essay.pdf). If this would be a single requirement from only Spain, storing this Taxpayer ID on profile level would not be an issue. However, if in the given example, Polish tax authorities are going to raise the same tax requirement, we are not able to store this on the profile level of the same supplier (addresses in Poland and also Spain) as there will already be a Tax Payer ID stored.

    We can ofcourse create seperate suppliers for the countries in which we forsee any kind of potential Taxpayer ID requirement arising, however, due to reporting of spend at grouped suppliers, we do not want to do so. Seperating a supplier based on country to be able to store the Taxpayer ID on profile level will make the business reporting for total spend a lot more cumbersome and time consuming.

    Is there anyone with a simular issue, and has a solution on how to handle this, ideally we would like to store the Taxpayer ID on address level, where VAT registrations are stored as well, at the moment, for the SII reporting, this is not possible as mentioned here; https://cloud.oracle.com/opc/saas/datasheets/online-vat-spain-topical-essay.pdf. (attached) And as confirmed by Oracle support in a Service Request.

    Thanks,

    Regards,

    Sem

    Version:
    19C

    Comment

     

    • Piyush Singh

      Hi Sem,

      Can you please confirm if these supplier locations having different Taxpayer IDs are different legal entities? Did you evaluate the solution to create these as suppliers within one parent child relationship hierarchy?

      Thanks,

      Piyush

      • Sem van Donk

        Hi,

        The Taxpayer ID is connected to transactions and used by various authorities to make sure the right VAT reporting is conducted. from the client we got to know that there can be multiple taxpayer IDs to 1 legal entity. Relationship is thus defined as 1 to N. The Taxpayer ID (NIF) is used in a simular fashion as the VAT registration.

        Regards,

        Sem