Re: [OFBiz] Users - multiple tax authorities in same Geo

Posted by David E. Jones on Jul 14, 2005; 10:56pm
URL: http://ofbiz.116.s1.nabble.com/OFBiz-Users-multiple-tax-authorities-in-same-Geo-tp135058p135059.html


In a way it does make sense to model a taxation entity as a  
combination of the geographic boundary, and the tax authority. BTW, I  
was using the term "jurisdiction" before, but I like tax authority a  
lot better.

On the SimpleSalesTaxLookup perhaps it is best to have both a  
taxAuthorityGeoId and a taxAuthorityPartyId.

For the posting of sales tax for a sales order, or from a sales  
invoice rather, I'm starting to like Si's idea of adding an entity  
that would have a sort of TaxAuthorityGlAccount entity with a  
taxAuthorityGeoId, taxAuthorityPartyId, organizationPartyId, and  
glAccountId.

Wow, a bit complicated.... Of course, with any luck, we'll get some  
larger companies to drool over it a bit...

-David


On Jul 13, 2005, at 5:40 PM, Si Chen wrote:

> Yes, I understood. I was just wondering if you might have a case  
> where you have multiple authorities for the same geo. Like for  
> example, for the same state, a sales tax authority like the  
> Franchise Tax Board and a use tax or school tax authority that  
> decided it wants to collect its own taxes. Then you'd have to map  
> the same Geo (not sub-Geos) to multiple authorities.
>
> Do you want us to take a look at re-factoring some of the  
> SimpleSalesTaxLookup stuff while we're at it? It should be possible  
> to change it the way you suggested it. The downside is then  
> everybody will have to modify their installation if they upgrade.
>
> Si
>
> David E. Jones wrote:
>
>
>>
>> Si,
>>
>> When I said that a given Geo would only have only one tax  
>> authority I did NOT mean a Geo and all of it's regions, or sub-
>> Geos. In other words, we really should have separate tax setup for  
>> each state/ province, and where application county, city, country,  
>> etc...
>>
>> Note that the current simple sales tax calc stuff in OFBiz is  
>> POORLY DESIGNED. It has a countryGeoId and a stateProvinceGeoId.  
>> Those 2 fields should be ripped out and a "jurisdictionGeoId"  
>> should put in place instead. The current design is both confusing  
>> and inflexible when you consider real-world requirements for  
>> taxation.
>>
>> This is one of those pieces of code that, well, to put it  
>> politely, inspires negative feelings in me when I think about it,  
>> and I wish it was never written this way because it will have to  
>> be corrected as soon as someone wants to do anything realistic  
>> with sales tax through this. Which will be an unpleasant surprise,  
>> and I'll have people angry with me as I try to explain to them  
>> that if they want it fixed somehow resources will have to be  
>> dedicated to that.
>>
>> Anyway, I hope that clears up the general concept. Each  
>> OrderAdjustment that represents sales tax has a primaryGeoId on  
>> it, and that is the one that the tax will (should) be for. So, a  
>> given OrderItem may have various different sales tax adjustments  
>> for different jurisdictions.
>>
>> -David
>>
>>
>> On Jul 13, 2005, at 4:59 PM, Matt Penner wrote:
>>
>>
>>> Hi Si,
>>>
>>> I just went through some of this in my own research. CA actually  
>>> seems to
>>> be an exception. Some states not only have multiple tax  
>>> authorities such as
>>> Federal, State, and Local, but there are also special  
>>> propositions passed in
>>> some counties requiring that local agencies such as  
>>> transportation get an
>>> additional percentage.
>>>
>>> For example, in Riverside Co, CA, the tax is really 7.5%, but  
>>> there is a
>>> transportation authority that receives a .25% tax of all sales  
>>> tax, bringing
>>> the total to the 7.75% that Riverside locals are familiar with.  
>>> Since we
>>> only pay one agency, the Franchise Tax Board as you mentioned, it  
>>> doesn't
>>> affect us much, but this could easily affect others.
>>>
>>> Matt
>>>
>>> -----Original Message-----
>>> From: [hidden email] [mailto:users-  
>>> [hidden email]]
>>> On Behalf Of Si Chen
>>> Sent: Wednesday, July 13, 2005 2:11 PM
>>> To: OFBiz Users / Usage
>>> Subject: [OFBiz] Users - multiple tax authorities in same Geo
>>>
>>> Hi. Working on some sales tax liability/expense stuff. Just  
>>> wanted to
>>> check:
>>>
>>> Does anybody have business requirements where sales or use or VAT  
>>> taxes
>>> are payable to multiple authorities in the same Geo? (ie, Do you  
>>> have
>>> special products that have separate sales and use tax  
>>> authorities, or do
>>> you have to pay different levels of local governments?)
>>>
>>> If so, please say so NOW. Otherwise, we'll set it so that each  
>>> Geo can
>>> only have one tax authority.
>>>
>>> (Note: in California, state, county, and city governments all have
>>> different sales taxes, but the taxes are paid to one state tax
>>> authority, the Franchise Tax Board. So, in this case, there is  
>>> only one
>>> payable authority per Geo of CA. I'm asking about cases where you
>>> actually have to send separate checks to different agencies.)
>>>
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>>
>>
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