VAT is an important component of the China Government’s entire taxing regime.
China mandates that Value Added Tax calculation, invoice generation, and reporting to tax authorities be done by Chinese certified software certified as “Golden Tax”. Through partnership with Hangtian, a software company for “Golden Tax” software, Oracle R12 offers a plug-and-play interface between Oracle AR and Golden tax system which is called Golden Tax Adaptor.
The official VAT is computed and official VAT invoices as well as reporting of collected VAT to the Chinese tax authorities can be entered and generated in the golden tax system. Information is then sent back through the Golden Tax Adaptor to Oracle AR where collection and accounting are actually done.
The Golden Tax project refers to an integrated nationwide value-added tax (VAT) monitoring system and was launched in a bid to establish a national computerized taxation network. Under this Golden Tax project, all businesses operating in Mainland China are required to use a government certified tax software referred to as the Golden Tax software for generating VAT invoices, VAT calculation, and statutory tax reporting. Chinese government policy requires all businesses to issue all VAT invoices through this Golden Tax system.
Invoice printing VAT Invoices is legal Requirement in China.
Golden Tax Adaptor
In Mainland China it is mandatory to use government authorized software, called Aisino Golden Tax system , for generating VAT invoices and statutory tax reporting.
Golden Tax Adaptor provides seamless integration between Oracle Receivables and the interface of Aisino Golden Tax software and streamlines the process of creating VAT invoices against the Receivables documents to make sure data consistency between Oracle Receivables and the Golden Tax software.
The preceding diagram illustrates the integration of Golden Tax Adaptor with the Aisino Golden Tax System.
Key points about the Golden Tax Adaptor are:
- The Golden Tax Adaptor is built on top of Oracle Receivables and Oracle E-Business Tax.
- The Golden Tax Adaptor is a central repository of data used by Oracle Receivables and the Aisino Golden Tax system.
- The Golden Tax Adaptor application consists of tables, a workbench, concurrent programs, and XML publisher reports.
- Receivables data for invoices, debit memos, and credit memos can be transferred to the Golden Tax Adaptor by request or periodically.
- The Golden Tax Invoice Workbench lets you manage, consolidate, and modify the data that is transferred from Receivables before you export the data.
- You can export data from the Golden Tax Adaptor to a data file. All required validations are performed at the time of export.
- You can export Golden Tax Adaptor data files into the Aisino Golden Tax system. You can then generate VAT invoices from the Aisino system and send them to customers.
- Aisino software allows you to export the VAT invoice data from its system to a data file.
- You can import the data file containing the VAT invoice data from the Aisino software into the Golden Tax Adaptor. During this import, the VAT invoice data is validated with the corresponding receivables invoice data in the Golden Tax Adaptor and then updated.
- Using the Golden Tax Invoice Workbench , you can view VAT invoice information against the corresponding receivables invoice in the View VAT Invoices window and from the Receivables Transactions window.
- Golden Tax Discrepancy and Invoice Mapping reports let you audit and report discrepancies in data between receivables and VAT invoices.
- You can use the Golden Tax Invoice Consolidation Mapping report to view the mapping between Golden Tax Adaptor invoices and Consolidated Golden Tax Adaptor Invoices.
Golden Tax Process
This feature is built on top of Oracle Accounts Receivable and Oracle E-Business Tax.
The key processes for a typical workflow are as below:
- Create receivables invoices manually or by using auto-invoice from Oracle Order Management.
- Transfer receivables transactions to the Golden Tax Adaptor.
- Modify the data in the Adaptor using the Golden Tax Invoice Workbench.
- Consolidate multiple invoices to an invoice based on the Consolidation rule.
- Export the invoice information either from the Golden Tax Invoice Workbench or a separate concurrent program.
- Import the flat file into the Aisino Golden Tax System (perform this activity in the Golden Tax software.)
- Generate corresponding VAT invoices in the Aisino Golden Tax System (perform this activity in the Golden Tax software.)
- Export the VAT invoice information from the Aisino Golden Tax System (perform this activity in the Golden Tax software.)
- Import the VAT invoices data file back into the Golden Tax Adaptor.
Hope this helps.