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China Golden Tax and VAT Compliance for Oracle Users Q and A

China Golden Tax and VAT Compliance for Oracle Users Q and A
IT Convergence’s recent webcast “How to Comply with China’s VAT and Golden Tax Regulations” was an outstanding success. As always, we’re happy to provide a complete copy of the Q and A transcript.Is there any Chinese translation that happens on the Golden Tax Adaptor before the data file gets sent to the Golden Tax System?

No, the translation doesn’t take place on the Golden Tax Adaptor. Users will need to maintain information in Mandarin in Oracle EBS first, and then transfer it to the Adaptor from where it gets sent to the Golden Tax System.

How do you maintain banking information for the Golden Tax System?

In the Golden Tax System  you will need the Bank Name, Branch and Account Number for every customer. Mind that all this information needs to be in Chinese.

Does this mean that VAT invoices are required to be printed in a specific format, and no accounting entry is required?

As we explained, you need to transfer the information from Oracle Receivables to the Golden Tax System. This is a system to print your physical invoices; the accounting entry is stored in the Oracle Account Receivables module.

Why do we need a separate system? Can’t this be built through custom Oracle report’s?

The Golden Tax System is a mandatory system established by the Chinese government. If your organization is a VAT-registered entity, you will have to generate your physical invoices through the Golden Tax System in the format mandated by the Tax Bureau authorities. So not using the Golden Tax System is not an option. Also, bear in mind that the same information that you enter in the Golden Tax System is the one that the government uses to reconcile your VAT reports (which need to be submitted every 2-3 months).

To transfer the information from Oracle Receivables to the Golden Tax System there are two options: the standard Oracle Golden Tax Adaptor, or a customized solution such as ITC’s, where we developed a customer form to generate and export the information required by the Golden Tax System.

How long does it take to implement ITC’s bolt-on solution?

Our solution is available both for Oracle 11i and Oracle R12 and many of our customers are working with it, so it’s a proven solution. What we normally do with a new client is carry out a mapping of the requirements and design. Normally it takes around 2 to 4 weeks to have the solution implemented and tested (though every project is different).

Connect for More on Oracle ERP Solutions for China

If you missed our webcast but are still interested in more on Oracle ERP solutions for China, we encourage you to check out the China Services section of our website and/or click here to view all of the China-related entries on this blog.